Chapter 3 Exam 2024/2025
with complete solution
Denning [Date] [Course title]
, A passenger is injured while getting into a friends car. Which of the following statements would apply if
both the passenger and the driver had medical payments coverage under the auto policy. - Correct
Answers: The drivers policy would be primary.
Adverse selection is a concept best described as: - Correct Answers: Risks with higher probability of loss,
seeking insurances more often than other risks.
An example of an alien insurer doing business in NY is one formed under the laws of - Correct Answers:
Mexico
According to the NY motor vehicle financial responsibility law what are the required limits of liability on
auto policies issued in this state? - Correct Answers: 25/50/10
Which of the following examples of losses paid under an HO-3 homeowners policy? - Correct Answers:
Damage to the dwelling caused by lava or dust from volcanic eruption.
The insureds car was hit and damaged by a deer. Under which of the following coverages in a personal
auto policy would this loss be paid? - Correct Answers: Other-Than- Collision
Negligence may be defined as - Correct Answers: The failure to use reasonable and prudent care
When the direct chain of events resulting from a negligent act causes injury or damage that act is
considered to be - Correct Answers: A proximate cause
All of the following are major coverages included in the homeowners policy except - Correct Answers:
Loss of income
Which of the following would be added for coverage under a property policy by an endorsement? -
Correct Answers: Additional Insureds
Under the automobile assigned risk plan how much coverage must be provided to the insured for
liability arising out of the death of two persons caused by a single auto accident? - Correct Answers: Up
to 100,000$
with complete solution
Denning [Date] [Course title]
, A passenger is injured while getting into a friends car. Which of the following statements would apply if
both the passenger and the driver had medical payments coverage under the auto policy. - Correct
Answers: The drivers policy would be primary.
Adverse selection is a concept best described as: - Correct Answers: Risks with higher probability of loss,
seeking insurances more often than other risks.
An example of an alien insurer doing business in NY is one formed under the laws of - Correct Answers:
Mexico
According to the NY motor vehicle financial responsibility law what are the required limits of liability on
auto policies issued in this state? - Correct Answers: 25/50/10
Which of the following examples of losses paid under an HO-3 homeowners policy? - Correct Answers:
Damage to the dwelling caused by lava or dust from volcanic eruption.
The insureds car was hit and damaged by a deer. Under which of the following coverages in a personal
auto policy would this loss be paid? - Correct Answers: Other-Than- Collision
Negligence may be defined as - Correct Answers: The failure to use reasonable and prudent care
When the direct chain of events resulting from a negligent act causes injury or damage that act is
considered to be - Correct Answers: A proximate cause
All of the following are major coverages included in the homeowners policy except - Correct Answers:
Loss of income
Which of the following would be added for coverage under a property policy by an endorsement? -
Correct Answers: Additional Insureds
Under the automobile assigned risk plan how much coverage must be provided to the insured for
liability arising out of the death of two persons caused by a single auto accident? - Correct Answers: Up
to 100,000$
