ACA Final EXAM Questions AND Correct Answers
A builder contracted for framing on a new section of a hospital. There is a surety
bond purchased to guarantee completion of the project. Which of the following
best describes the hospital position in the surety bond?
The hospital is the obligee
The hospital is the principalThe hospital is the suretyThe hospital is the
indemnitor - ✔✔The hospital is the obligee
A claimant ate some undercooked fish and got violently ill at the restaurant.
Which of the following would pay for this occurrence?
A products and completed operations form
A premises and operations form
An owner's and contractor's protective liability form
A liquor liability form - ✔✔A premises and operations form
A furniture manufacturing business wanted to serve free beer at its company
picnic. What is required for this business to have liability coverage for liquor
consumption at the picnic?
The business CGL policy will cover this exposure
The business CGL requires the liquor liability form in this case
The business CGL should have the "extension of coverage" endorsementThere is
no way liability for alcoholic beverages can be included under CGL - ✔✔The
business CGL policy will cover this exposure
,A health insurance policy was issued containing the provision that the insurance
company must renew the policy to a particular age and could NOT adjust the
premiums. What is this policy called?
A non-cancelable policy
A major medical policy
An optionally renewable policy
A guaranteed renewable policy - ✔✔A non-cancelable policy
Adjuster Jane moved from one city in Florida to another. What length of time
does she have to notify the Insurance Department of the address change?
10 Days30 Days60 Days90 Days - ✔✔30 days
All of the following activities are illegal for an adjuster, EXCEPT:
Give advice which is of a legal natureUse only company forms to prepare
releasesEncourage a claimant to make a quick decision on an offer to settleFail
to make claimant aware of potential litigation for claimant's actions - ✔✔Use
only company forms to prepare releases
All of the following are eligible for a Homeowners Policy EXCEPT:
A person who rents an apartment
A condominium owner
Owner-occupant of a four-family dwelling
, A beach house owned by Acme Corporation - ✔✔A beach house owned by
Acme Corporation
All of the following are EXCLUSIONS under a personal articles floater (Personal
Inland Marine Policy) EXCEPT:
Theft
Deterioration of insured article
Inherent vice - destruction contained within the object
Losses caused by vermin or insects - ✔✔Theft
All of the following are true for Medicare Supplement Insurance EXCEPT:
Offered to people over 65 and certain disability receiversCovers some expenses
not paid by MedicarePolicy must contain a 180 day "free look"Pre-existing
conditions may not be excluded for more than 180 days - ✔✔Policy must
contain a 180 day "free look"
All of the following may qualify for a dwelling policy EXCEPT:
A 6 - family dwelling
A beach house owned by Acme Corporation
A small single family home, rented by a salesman
An old frame home, built upon piers, valued at $10,000 and occupied by the
owner, Mrs. Jones. Company underwriting minimum for a homeowner policy is
$50,000. - ✔✔A 6 - family dwelling
A builder contracted for framing on a new section of a hospital. There is a surety
bond purchased to guarantee completion of the project. Which of the following
best describes the hospital position in the surety bond?
The hospital is the obligee
The hospital is the principalThe hospital is the suretyThe hospital is the
indemnitor - ✔✔The hospital is the obligee
A claimant ate some undercooked fish and got violently ill at the restaurant.
Which of the following would pay for this occurrence?
A products and completed operations form
A premises and operations form
An owner's and contractor's protective liability form
A liquor liability form - ✔✔A premises and operations form
A furniture manufacturing business wanted to serve free beer at its company
picnic. What is required for this business to have liability coverage for liquor
consumption at the picnic?
The business CGL policy will cover this exposure
The business CGL requires the liquor liability form in this case
The business CGL should have the "extension of coverage" endorsementThere is
no way liability for alcoholic beverages can be included under CGL - ✔✔The
business CGL policy will cover this exposure
,A health insurance policy was issued containing the provision that the insurance
company must renew the policy to a particular age and could NOT adjust the
premiums. What is this policy called?
A non-cancelable policy
A major medical policy
An optionally renewable policy
A guaranteed renewable policy - ✔✔A non-cancelable policy
Adjuster Jane moved from one city in Florida to another. What length of time
does she have to notify the Insurance Department of the address change?
10 Days30 Days60 Days90 Days - ✔✔30 days
All of the following activities are illegal for an adjuster, EXCEPT:
Give advice which is of a legal natureUse only company forms to prepare
releasesEncourage a claimant to make a quick decision on an offer to settleFail
to make claimant aware of potential litigation for claimant's actions - ✔✔Use
only company forms to prepare releases
All of the following are eligible for a Homeowners Policy EXCEPT:
A person who rents an apartment
A condominium owner
Owner-occupant of a four-family dwelling
, A beach house owned by Acme Corporation - ✔✔A beach house owned by
Acme Corporation
All of the following are EXCLUSIONS under a personal articles floater (Personal
Inland Marine Policy) EXCEPT:
Theft
Deterioration of insured article
Inherent vice - destruction contained within the object
Losses caused by vermin or insects - ✔✔Theft
All of the following are true for Medicare Supplement Insurance EXCEPT:
Offered to people over 65 and certain disability receiversCovers some expenses
not paid by MedicarePolicy must contain a 180 day "free look"Pre-existing
conditions may not be excluded for more than 180 days - ✔✔Policy must
contain a 180 day "free look"
All of the following may qualify for a dwelling policy EXCEPT:
A 6 - family dwelling
A beach house owned by Acme Corporation
A small single family home, rented by a salesman
An old frame home, built upon piers, valued at $10,000 and occupied by the
owner, Mrs. Jones. Company underwriting minimum for a homeowner policy is
$50,000. - ✔✔A 6 - family dwelling
