Property & Casualty Final & State Exam 2024 (100% Verified answers)

personal auto policy (PAP) (LMPDA/IMCONOV/BIPBIOPDO/10D/20D) correct answers provides protection for liability, medical payments, and damage to the automobile for individuals and married couples and their owned and nonowned vehicles; most widely used personal lines auto contract in US and Alabama, limits of liability always written as BI per person, BI per occurrence, and PD per occurrence; cancellation notices include 10 days after receiving for nonpayment and 20 days after receiving for other reason;(cancellation applied differently to policies under Assigned Risk plan, policies with 4 or more autos, and policies insuring vehicles over 1,500 lbs or used in insured's business) exclusions VMM (DG/T/B/L/E/VP) correct answers exclusions include damage to glass, theft, burglary, larceny, explosion, and vacant premises if left for more than 60 days umbrella liability coverage correct answers liability insurance that provides higher limits for biz, orgs, and individuals and supplements basic liability coverage (limits not same for all covered losses, certain losses excluded by primary contracts covered, this becomes primary when underlying coverage exhausted) common exclusions to special open perils cause of loss form (FDVUS/TITDUC/W/GELWTDMBSRSVF/SSBED/LAOI/C) correct answers freezing damage to vacant, unoccupied structures (unless reasonable care has been taken or to fences, pavement, patios, etc); theft in or to a dwelling under construction; wind damage items like outside antenna and other such items; gradual and expected losses such as wear and tear, deterioration, inherent vice, latent defect, mechanical breakdown, smog, rust, etc; smoke, vapor, fumes, etc occurring over a long period of time; settling, shrinking, bulging or expansion damage caused by normal actions of this nature; losses caused by animals owned by insured; collapse from most other causes consultant correct answers a type of insurance person who does not actually sell insurance but sells advice about insurance commercial block policy (OPC/HVI/BC) correct answers generally provides open perils coverage, items of high value, and bailee coverage (excludes protection against employee dishonesty) crop coverage exclusion under farm policy correct answers coverage designed to cover cultivated agricultural plants like grain, vegetables, or fruit while still in field; not eligible for coverage under farm program; damage from crop dusting not covered negative equity insurance under PAP correct answers coverage sometimes sold by auto dealers that covers difference in what the insurer will pay and what is owed on the car under PAP; ex. auto covered under collision is total loss after accident, insured owes $30,000 but actual cash