AAI 81 B Assignment 3 All Latest 2024 Questions and
Correct Answers (Graded 100%)
An individual who owns a motorcycle with a sidecar wishes to insure the associated liability
exposure. Which one of the following insurance solutions would provide the best coverage?
Select one:
A. Incidental Low Power Recreational Motor Vehicle Endorsement added to the homeowner’s
policy
B. Miscellaneous Type Vehicle Endorsement added to the homeowners policy
C. Unendorsed personal auto policy provides adequate liability coverage
D. Miscellaneous Type Vehicle Endorsement added to the personal auto policy - ANSWER
D. Miscellaneous Type Vehicle Endorsement added to the personal auto policy
Which one of the following types of vehicles is specifically excluded in the liability section of the
personal auto policy?
Select one:
A. Motor home
B. Antique auto
C. Travel trailer
D. Minibike - ANSWER D. Minibike
Liability coverage for motorized golf carts can be obtained using
Select one:
A. A Miscellaneous Four-Wheeled Vehicle Endorsement to a homeowners policy.
B. An Owned Motorized Golf Cart Physical Loss Coverage Endorsement to a homeowners policy.
C. An Insurance Services Office (ISO) Homeowners 2000 policy.
D. A Personal Auto Policy (PAP), however some limitations apply. - ANSWER C. An
Insurance Services Office (ISO) Homeowners 2000 policy.
, Charles is driving his golf cart on the golf course when he hits a golfer. The golfer suffers minor
injuries. Charles' liability coverage for this incident would be provided by his
Select one:
A. Miscellaneous Type Vehicle Endorsement added to his homeowners policy.
B. Unendorsed personal auto policy.
C. Owned Motorized Golf Cart Physical Loss Coverage Endorsement added to his personal auto
policy.
D. Unendorsed homeowners policy. - ANSWER D. Unendorsed homeowners policy.
Jennifer owns a valuable stamp collection, and her insurer refuses to provide the required amount
of coverage by endorsement to her homeowners policy. Which one of the following types of
personal inland marine coverage forms should Jennifer use to cover her stamp collection for its
full value on a scheduled basis?
Select one:
A. Personal Effects Form
B. Personal Property Form
C. Personal Articles Standard Loss Settlement Form
D. Floating Property Form - ANSWER C. Personal Articles Standard Loss Settlement Form
Max has a personal inland marine policy on which he has scheduled his gold watch for a value of
$2,500. While golfing, he damaged the watch. The actual cash value of the watch at the time of
the damage was $4,000. The cost to repair the watch to its prior condition is $1,500. The cost to
replace the watch with a substantially identical replacement is $5,000. Which one of the following
amounts will Max's insurer pay for the covered loss?
Select one:
A. $1,500
B. $2,500
C. $4,000
D. $5,000 - ANSWER A. $1,500
Correct Answers (Graded 100%)
An individual who owns a motorcycle with a sidecar wishes to insure the associated liability
exposure. Which one of the following insurance solutions would provide the best coverage?
Select one:
A. Incidental Low Power Recreational Motor Vehicle Endorsement added to the homeowner’s
policy
B. Miscellaneous Type Vehicle Endorsement added to the homeowners policy
C. Unendorsed personal auto policy provides adequate liability coverage
D. Miscellaneous Type Vehicle Endorsement added to the personal auto policy - ANSWER
D. Miscellaneous Type Vehicle Endorsement added to the personal auto policy
Which one of the following types of vehicles is specifically excluded in the liability section of the
personal auto policy?
Select one:
A. Motor home
B. Antique auto
C. Travel trailer
D. Minibike - ANSWER D. Minibike
Liability coverage for motorized golf carts can be obtained using
Select one:
A. A Miscellaneous Four-Wheeled Vehicle Endorsement to a homeowners policy.
B. An Owned Motorized Golf Cart Physical Loss Coverage Endorsement to a homeowners policy.
C. An Insurance Services Office (ISO) Homeowners 2000 policy.
D. A Personal Auto Policy (PAP), however some limitations apply. - ANSWER C. An
Insurance Services Office (ISO) Homeowners 2000 policy.
, Charles is driving his golf cart on the golf course when he hits a golfer. The golfer suffers minor
injuries. Charles' liability coverage for this incident would be provided by his
Select one:
A. Miscellaneous Type Vehicle Endorsement added to his homeowners policy.
B. Unendorsed personal auto policy.
C. Owned Motorized Golf Cart Physical Loss Coverage Endorsement added to his personal auto
policy.
D. Unendorsed homeowners policy. - ANSWER D. Unendorsed homeowners policy.
Jennifer owns a valuable stamp collection, and her insurer refuses to provide the required amount
of coverage by endorsement to her homeowners policy. Which one of the following types of
personal inland marine coverage forms should Jennifer use to cover her stamp collection for its
full value on a scheduled basis?
Select one:
A. Personal Effects Form
B. Personal Property Form
C. Personal Articles Standard Loss Settlement Form
D. Floating Property Form - ANSWER C. Personal Articles Standard Loss Settlement Form
Max has a personal inland marine policy on which he has scheduled his gold watch for a value of
$2,500. While golfing, he damaged the watch. The actual cash value of the watch at the time of
the damage was $4,000. The cost to repair the watch to its prior condition is $1,500. The cost to
replace the watch with a substantially identical replacement is $5,000. Which one of the following
amounts will Max's insurer pay for the covered loss?
Select one:
A. $1,500
B. $2,500
C. $4,000
D. $5,000 - ANSWER A. $1,500
