OTL Exam Practice Questions – Study Guide and Exam Preparation Material
Which exclusion is commonly found in the personal liability coverage of a homeowners policy?
a. Damage caused to a neighbor’s home
b. Bodily injury caused because of negligence
c. Damage caused to a neighbor’s automobile
d. Bodily injury caused by a criminal act - correct answer ✔✔d. Bodily injury caused by a
criminal act
What type of coverage does a mobile home policy provide?
a. Named perils on the building and contents, excluding damage while the building is being
moved. Mobile home policies provide named perils coverage for the building and contents
which is similar to the basic Homeowners policy but excludes coverage when the home is being
moved.
b. Named perils on the building and all perils on the contents, because many of the contents are
considered part of the building.
c. Named perils on the building but no coverage for the contents, because many of the contents
are considered part of the building.
d. Named perils on the contents, but no coverage for the building, due to fast depreciation. -
correct answer ✔✔a. Named perils on the building and contents, excluding damage while the
building is being moved.
A university student is seeking protection for her personal property while living in school
residence. Which coverage is available to her, if any?
a. She must purchase a tenants policy.
b. She does not have access to insurance protection and must self-insure.
c. She is covered under the university's residence contents insurance policy.
, d. She is automatically covered, subject to certain restrictions, if her parents have a
comprehensive homeowners policy. - correct answer ✔✔d. She is automatically covered,
subject to certain restrictions, if her parents have a comprehensive homeowners policy.
Coverage C—Personal Property of the comprehensive homeowners policy includes extension of
coverage, up to a certain limit, to include the personal property of a student insured under the
policy but temporarily living away from home to attend school. A student in residence would
not require tenant insurance and universities do not provide content coverage for students.
What happens if the statutory conditions are not identified and printed in every automobile and
fire insurance policy?
Select one:
a. The insurer may incur a penalty and the statutory condition would still apply
b. The insurer would incur a penalty but wouldn't be required to comply with something that
isn't identified and printed
c. The insured will not be required to comply with them if they are not identified and printed If
an insurer fails to identify and print the statutory conditions in every automobile and fire policy,
they may incur a penalty and the conditions would still apply.
d. The insurer would not be required to comply with them if they are not identified and printed
- correct answer ✔✔a. The insurer may incur a penalty and the statutory condition would still
apply
When a loss is presented as a claim, the insurer has the right to investigate. How is this
protected in the agreements of insureds under Section 7—Loss or Damage Coverage?
Select one:
a. Not leave the insured to dispose of the automobile unless they agree to do so, or the insurer
tells them to
b. Allow insured to copy all documents in their possession that relate to the incident before
turning them over to the insurer.
c. Permit the insured to inspect the automobile at any reasonable time as determined by the
insurer.
Which exclusion is commonly found in the personal liability coverage of a homeowners policy?
a. Damage caused to a neighbor’s home
b. Bodily injury caused because of negligence
c. Damage caused to a neighbor’s automobile
d. Bodily injury caused by a criminal act - correct answer ✔✔d. Bodily injury caused by a
criminal act
What type of coverage does a mobile home policy provide?
a. Named perils on the building and contents, excluding damage while the building is being
moved. Mobile home policies provide named perils coverage for the building and contents
which is similar to the basic Homeowners policy but excludes coverage when the home is being
moved.
b. Named perils on the building and all perils on the contents, because many of the contents are
considered part of the building.
c. Named perils on the building but no coverage for the contents, because many of the contents
are considered part of the building.
d. Named perils on the contents, but no coverage for the building, due to fast depreciation. -
correct answer ✔✔a. Named perils on the building and contents, excluding damage while the
building is being moved.
A university student is seeking protection for her personal property while living in school
residence. Which coverage is available to her, if any?
a. She must purchase a tenants policy.
b. She does not have access to insurance protection and must self-insure.
c. She is covered under the university's residence contents insurance policy.
, d. She is automatically covered, subject to certain restrictions, if her parents have a
comprehensive homeowners policy. - correct answer ✔✔d. She is automatically covered,
subject to certain restrictions, if her parents have a comprehensive homeowners policy.
Coverage C—Personal Property of the comprehensive homeowners policy includes extension of
coverage, up to a certain limit, to include the personal property of a student insured under the
policy but temporarily living away from home to attend school. A student in residence would
not require tenant insurance and universities do not provide content coverage for students.
What happens if the statutory conditions are not identified and printed in every automobile and
fire insurance policy?
Select one:
a. The insurer may incur a penalty and the statutory condition would still apply
b. The insurer would incur a penalty but wouldn't be required to comply with something that
isn't identified and printed
c. The insured will not be required to comply with them if they are not identified and printed If
an insurer fails to identify and print the statutory conditions in every automobile and fire policy,
they may incur a penalty and the conditions would still apply.
d. The insurer would not be required to comply with them if they are not identified and printed
- correct answer ✔✔a. The insurer may incur a penalty and the statutory condition would still
apply
When a loss is presented as a claim, the insurer has the right to investigate. How is this
protected in the agreements of insureds under Section 7—Loss or Damage Coverage?
Select one:
a. Not leave the insured to dispose of the automobile unless they agree to do so, or the insurer
tells them to
b. Allow insured to copy all documents in their possession that relate to the incident before
turning them over to the insurer.
c. Permit the insured to inspect the automobile at any reasonable time as determined by the
insurer.
