massachusetts personal lines || QUESTIONS WITH
GUARANTEED CORRECT ANSWERS.
Severability of Insurance correct answers the insurance applies separately to each insured. this
condition does not increase the insurer's liability for any one occurrence.
Mobile Home Endorsement correct answers when an auto that is shown on the declarations page
is a mobile home, coverage extends to include certain permanently installed equipment and
accessories
Speculative Risk correct answers when a person has both the chance of winning or losing
Liability limits correct answers $20,000/$40,000/
$5,000
MA Financial Responsibility Law correct answers requires that the insurance policy provides
coverage limits not less than the following:
$20,000 on account of injury or death to any 1 person in a single accident
$40,000 on account of injury or death to 2 or more persons in a single accident
$5,000 for damage to property of others arising out of a single accident
What is the minimum amount of coverage that should be carried on an HO-2 on a home that was
purchased 4 years ago for $75,000, which today has a replacement value of $100,000? correct
answers $80,000
A homeowner, at the time of loss, must be insured for at least ____ %
of replacement cost in order to collect the full replacement cost of a partial loss correct answers
80%
Not a cover auto correct answers a mobile home
(if someone is injured exiting a friend's mobile home this is classified as a premises exposure)
What does Massachusetts Automobile Insurance policy cover? correct answers Medical
Payments: paying for injuries arising out of an auto event, regardless of fault
Substitute Transportation will reimburse the insured for transportation expenses if: correct
answers the insured's auto is out of service due to collision damage and the auto is covered for
collision
, Personal Injury Protection Coverage correct answers will only pay $2,000 in benefits if the
insured has medical coverage that will pay some of the medical expenses. If the insured has more
expenses after $2,000 PIP and the insurance has paid the limit will be returned to $8,000
Earthquake Damage correct answers damage by earthquake is specifically EXCLUDED from
coverage in all homeowners forms. However, coverage may be purchased by endorsement.
Farm Property is correct answers specifically excluded under the liability section of a HO policy
Under the HO-4 and HO-6 homeowner policy forms, property is insured against: correct answers
broad form perils
Exclusions on a Dwelling Policy correct answers All Homeowner Policy Exclusions apply to All
Dwelling Policies
to legally transact insurance in this state, an insurer must obtain: correct answers Certificate of
Authority
Vandalism and Malicious Mischief correct answers Coverage provided in many property
insurance policies that protects property against damage caused by vandals
but will NOT be covered if vacant for more than 60 days immediately prior to the loss
A participating insurance policy may .. correct answers Pay dividends to the policy owner
Personal Injury correct answers may be added as an endorsement
Risks that contain farming exposure correct answers are not eligible for homeowners insurance
Does the homeowners policy cover a collapse cause by foundation cracks? correct answers NO
The foundation cracks would take years to cause collapse, meaning there would have been plenty
of time to fix them
Required to participate in the Insolvency Fund correct answers Authorized Insurers are required
to participate in the Fund as a condition of their certificate of authority
Specific Coverage correct answers one location is insured for a specific amount of insurance on
the structure and contents
unfair trade practices correct answers if an auto repair facility/insurance company fails to
discloses whether the parts installed were used, rebuilt or aftermarket crash parts
Reciprocity correct answers occurs when the state in which the person resides accords the same
privilege to residents of MA
GUARANTEED CORRECT ANSWERS.
Severability of Insurance correct answers the insurance applies separately to each insured. this
condition does not increase the insurer's liability for any one occurrence.
Mobile Home Endorsement correct answers when an auto that is shown on the declarations page
is a mobile home, coverage extends to include certain permanently installed equipment and
accessories
Speculative Risk correct answers when a person has both the chance of winning or losing
Liability limits correct answers $20,000/$40,000/
$5,000
MA Financial Responsibility Law correct answers requires that the insurance policy provides
coverage limits not less than the following:
$20,000 on account of injury or death to any 1 person in a single accident
$40,000 on account of injury or death to 2 or more persons in a single accident
$5,000 for damage to property of others arising out of a single accident
What is the minimum amount of coverage that should be carried on an HO-2 on a home that was
purchased 4 years ago for $75,000, which today has a replacement value of $100,000? correct
answers $80,000
A homeowner, at the time of loss, must be insured for at least ____ %
of replacement cost in order to collect the full replacement cost of a partial loss correct answers
80%
Not a cover auto correct answers a mobile home
(if someone is injured exiting a friend's mobile home this is classified as a premises exposure)
What does Massachusetts Automobile Insurance policy cover? correct answers Medical
Payments: paying for injuries arising out of an auto event, regardless of fault
Substitute Transportation will reimburse the insured for transportation expenses if: correct
answers the insured's auto is out of service due to collision damage and the auto is covered for
collision
, Personal Injury Protection Coverage correct answers will only pay $2,000 in benefits if the
insured has medical coverage that will pay some of the medical expenses. If the insured has more
expenses after $2,000 PIP and the insurance has paid the limit will be returned to $8,000
Earthquake Damage correct answers damage by earthquake is specifically EXCLUDED from
coverage in all homeowners forms. However, coverage may be purchased by endorsement.
Farm Property is correct answers specifically excluded under the liability section of a HO policy
Under the HO-4 and HO-6 homeowner policy forms, property is insured against: correct answers
broad form perils
Exclusions on a Dwelling Policy correct answers All Homeowner Policy Exclusions apply to All
Dwelling Policies
to legally transact insurance in this state, an insurer must obtain: correct answers Certificate of
Authority
Vandalism and Malicious Mischief correct answers Coverage provided in many property
insurance policies that protects property against damage caused by vandals
but will NOT be covered if vacant for more than 60 days immediately prior to the loss
A participating insurance policy may .. correct answers Pay dividends to the policy owner
Personal Injury correct answers may be added as an endorsement
Risks that contain farming exposure correct answers are not eligible for homeowners insurance
Does the homeowners policy cover a collapse cause by foundation cracks? correct answers NO
The foundation cracks would take years to cause collapse, meaning there would have been plenty
of time to fix them
Required to participate in the Insolvency Fund correct answers Authorized Insurers are required
to participate in the Fund as a condition of their certificate of authority
Specific Coverage correct answers one location is insured for a specific amount of insurance on
the structure and contents
unfair trade practices correct answers if an auto repair facility/insurance company fails to
discloses whether the parts installed were used, rebuilt or aftermarket crash parts
Reciprocity correct answers occurs when the state in which the person resides accords the same
privilege to residents of MA
