ACA Exam Questions with solutions 2024

ACA Exam Questions with solutions 2024 A property policy covers "fire" as a peril. A small fire starts, fortunately, the fire department quickly arrives and puts out the fire. Unfortunately, there is water damage due to the water from the fire hoses. This water damage would be covered because Fire was the proximate cause of damage The coverage for damage due to an aircraft under the care, custody, or control of the insured while the plane is in for storage or service is: Hangarkeepers liability Brainpower Read More Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:01 / 0:15 Full screen Under the commercial property form, what length of time must expire before a building is considered "vacant" -- thereby suspending some coverages, while reducing payment on others? 60 days A florist wanted coverage on business contents, which vary in amount over the course of a year. Which form best covers this situation? The value reporting endorsement A community applied to be part of the National Flood Insurance Program. Until they are approved, what is the status of the community of the community? They are in the emergency program Both commercial property and liability were combined into one policy, thus saving money on underwriting expense. What is this combination called? A package policy What is the smallest amount of liability insurance under the business-owners policy (BOP)? $300,000 Which of the following would be excluded under a personal articles floater on an "all risks" basis? Insects destroy a valuable postage stamp worth $500 A ship loaded with lumber encountered a terrible storm, and some of the lumber was thrown overboard to save the ship - this action is called: Jettison A contracted was concerned some of his tools, such as a welder, could be stolen from the job site. What inland marine form is best suited for this exposure? The contractors equipment floater All of the following are exclusions under the Personal Inland Marine Policy EXCEPT: Theft from and "off site" location An Umbrella Policy may be broader than the underlying policies and respond as primary coverage. When the Umbrella is primary, there is an amount to be paid by the insured - this is called: The self-insured retention If a person does not own an auto, but must provide Auto Liability, for what would he ask his agent? A named non-owned policy Which of the following is false concerning flood insurance? To be insured for flood, a new building must be 25% complete, have the walls up - roof not required to qualify Vacancy of more than days suspends coverage on all the following EXCEPT: Weight of ice and snow If a homeowner lives in a home 80% or more of the time, Flood coverage will respond to a loss in what manner? Replacement cost on primary residence, actual cash value on others structures All of the following are optional limits for the liability section of a BOP EXCEPT: $250,000 Under Equipment Breakdown Protection, also called Boiler and Machinery Coverage, the following are true statements: -Minimum limit for liability is $500,000 -"Accident" is defined as sudden and accidental breakdowns -Exclusions include wear & tear and deterioration There are advantages of an agent recommending a commercial package policy over several monoline policies. Which of the following would NOT be an advantage? The terminology in the package policy is easier to understand A shipper contemplates 10 or 11 loads of produce to be shipped to Pennsylvania over the course of the next 10 months. What inland marine coverage best fits this exposure? An annual transit policy An Inland Marine or Personal Articles Floater might be used to cover all of the following except: Personal Auto Exclusions to the All Risk Coverage of a Personal Article Floater Policy include all of the following excepting: Theft Umbrella Policies provide additional... Liability coverage Umbrella Policies... - May contain a Self-insured retention - May have coverage that is not available in the underlying policy - May cover more than one underlying policy Which of the following is true: With Flood Insurance, "other structures" are paid at Actual Cash Value Actual Cash Value Is current cost minus depreciation Which entity manages the Flood Insurance program? FEMA & NFIP All of the following may qualify for a dwelling policy EXCEPT: A 6 - family dwelling All of the following are eligible for a Homeowners Policy EXCEPT: A beach house owned by Acme Corporation A homeowner had his house for $80,000. It was totally destroyed in a hurricane. His company paid the full $80,000, due to the: The "Florida Valued Policy Law" The principle of "insurable interest" is important in the dwelling policy as well as other kinds of insurance. which of the following does not have "insurable interest" in the described property? One who attends a Mary Kay party at a friend's home Aunt Mary lives with the insured Homeowner. A thief steals her hearing aid. The HO-3 will: Cover within the limits of the H/O policy Which of the following is eligible for a Homeowners policy? -Susie, who has purchased a condo unit for her residence -John, who buys a duplex and lives in one side -Sam, who rents an apartment for his residence Which of the following could not qualify for H/O? Acme Dental Lab Inc., which purchases a condo on Daytona Beach for employee enjoyment Which of the following is not covered under Coverage C, Personal Property? The dead fish when the insured accidentally overturns his tropical fish tank and all the fish die from lack of oxygen Which of the following events would not be covered under a HO-3? A sewer line become clogged and the toilet in the house backed up and overflowed, damaging the carpet A lender has an insurable interest in a home - and finds protection in the: Mortgagee Clause Under both the Dwelling and Homeowners, Cov. B - unattached structures - usually is: 10% of Coverage A - Structure What does Coverage B - unattached structures - under the dwelling policy cover? Unattached structures located on the premises How many day non-renewal or cancellation is permitted on a dwelling policy? 120 days Which of the following forms is "all risks" on the dwelling policy? DP-3, or the special form Which of the following is not one of the rating factors used in determining a H/O premium? Gender of owner The endorsement that allows a company writing a homeowner policy to increase the amount of insurance coincidental with the increases in the costs of building construction is called: The "inflation guard" endorsement Jame has dwelling policy with the house insured for $40,000. If her detached shed, that is valued at $4,500, is destroyed by a covered peril, what can she expect? She can expect $4,000 to be paid, because unattached structures are covered up to 10% of the dwelling amount All of the following are part of the conditions imposed upon the insured in the event of a loss EXCEPT: Insured should negotiate on behalf of the company for 3rd party Homeowners Policies usually property for which of the following: Fire, lightening, explosion,riot, civil commotion Homeowners, Section II, Coverage E - liability - usually EXCLUDES all the following EXCEPT: Golf carts in private residential communities where insured resides Nonresidents must comply with the Florida No Fault law: if their auto is in Florida over 90 of the last 365 days An insured and his spouse have two cars insured under a Personal Auto Policy. What coverage is available for a car that the wife borrows from a friend to use for the weekend? The borrowed car would have the broadest coverage available The Financial Responsibility Law may be satisfied by which of the following -Buying liability auto insurance in the amount of 10/20/10 split limits -Buying liability auto insurance in the amount of $30,000 single limit An insured had an accident in another state tat required liability limits of 25/50/20. Our insured had 10/20/10 limits. What happens if the liability he incurs exceeds 10/20/10? Our insured's policy will respond to the higher limit of the other state How do Workers Compensation benefits a[[;y when work related injuries are also covered by PIP? PIP excess of WC In Florida, Pt. B, Medical Payments (Med Pay) will pay: Excess benefits after PIP is exhausted An insured purchases Extended PIP; this changes his medical reimbursement to : 100% All of the following are "Thresholds" of the No-Fault Law, EXCEPT: Temporary injury Jack is involved in and accident - he is driving his car when hit by an at-fault driver, Sam. (Florida Residents). Jack has two more cars at home. Both Jack and Sam have Basic PIP with no deductible, Med Pay coverage of $5,000, Liability of 50/100/50, and stacked UM of $50,000 on each car that they own. Jack has a medical claim of $215,000. How much will Jack's UM pay for this claim? $150,000 When is the named ensured not entitled to the benefit of PIP? Injured outside of Florida while a pedestrian An insured buys mechanical breakdown coverage on his used car. For what length of time and mileage will he/she have coverage? 12 Month / 12,000 Miles Joe has 10/20/10 liability limits, and he borrows Sue's car. Sue has 15/30/15 of liability. Joe injures a pedestrian while driving Sue's car and the pedestrian's medical bills due from liability total $22,00. (PIP and Med Pay are exhausted) How much is paid from Liability? Sue's policy pays $15,000 & Joe's policy pays $7,000