Guarantee ExamFX, Idaho Personal Lines Simulation Exam with Complete Solutions

Guarantee ExamFX, Idaho Personal Lines Simulation Exam with Complete Solutions In the last 72 hours, there were 3 instances of volcanic eruptions that damaged a property covered by a dwelling policy. How many deductibles will the insured have to pay before the policy covers the damages caused by the eruptions? 1. Zero 2. One 3. Two 4. Three one In a personal auto policy (PAP), a covered auto includes all of the following EXCEPT 1. A trailer owned by the insured. 2. A farm implement being towed behind the insured's pickup. 3. A nonowned temporary substitute vehicle. 4. A van used in the delivery business. A van used in the delivery business. Which of the following would NOT be covered as a loss under Coverage D of a homeowners policy? 1. An insured has an apartment in his home. The tenant's negligence started a fire, and the apartment was not fit to live in for 4 months while repairs were being completed. 2. After a fire in a building next to the insured's home, the insured could not occupy his home, and had to stay at a motel for one week. 3. An insured's home is damaged by fire. The insured incurs expenses for living in a motel and having meals in a restaurant while repairs are made. 4. An insured leased a dwelling for 5 years. Two years later, the property owner died, and the new property owners wanted to make the property their principal residence, so the lease was canceled. An insured leased a dwelling for 5 years. Two years later, the property owner died, and the new property owners wanted to make the property their principal residence, so the lease was canceled. An insurance policy form that lists specific covered perils provides 1. Special peril coverage. 2. Blanket coverage. 3. Named peril coverage. 4. Open peril coverage. Named peril coverage. An insured is injured while driving his own car. Which of the following coverages will pay for the loss? 1. Part A-Liability 2. Part B - Medical Payments 3. Part C - Uninsured Motorist 4. Part D-Damage to Your Auto Part B - Medical Payments An insured believes that his insurer is not properly fulfilling its obligations regarding his policy. What section of the policy will give the insured more information about specific duties of the insurer? 1. Obligations 2. Conditions 3. Endorsements 4. Definitions Conditions *A trucking company has a $1 million umbrella policy in place. The businessowner agrees to maintain a 200/500/100 limit on auto liability, and a personal liability of $400,000. After a car accident, the business is sued. Injuries are awarded to a single injured party in the amount of $300,000. It turned out that the business actually carried only 100/250/50 auto liability limits. What is the total amount the umbrella policy will pay? 1. $100,000 2. $50,000 3. $200,000 4. $300,000 $100,000 If an insurance policy has the additional coverage provision, how does it affect the policy premium? 1. Premium will be calculated on a pro rata basis based on the amount of additional coverage. 2. There is no additional premium. 3. Premium will be recalculated when a specific loss covered by this provision occurs. 4. Additional premium will be assessed. There is no additional premium. An insured has $5,000 of medical coverage under a personal auto policy at the time of a covered accident. The insured and 3 passengers are injured. The insured's medical expenses are $8,000. The first passenger's total $4,000; the second passenger's total $6,500; and the third passenger's total $1,200. How much will the policy pay under the medical payments coverage? 1. $5,000 2. $8,000 3. $15,200 4. $19,700 $15,200 Each of the following may be insured under an HO-3 homeowners policy EXCEPT 1. The owner-occupant of a condominium unit. 2. An occupant of a dwelling under