EXAMFX EXAM AND PRACTICE EXAM
NEWEST ACTUAL EXAM COMPLETE
QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
While an insured was towing a utility trailer with his
auto, the trailer came loose and ran into a store
front. What part of the insured's auto policy would
pay for the damage to the store? -
....ANSWER...Property Damage Liability
Which program was established to encourage
employers to hire workers who may have suffered
previous work related injury that, when combined
with another injury, could be disabled to a greater
degree than that of the single injury? -
....ANSWER...Second Injury Fund
While an insured's covered auto is in the repair shop
following damage caused by a collision, the insured
would have coverage for which of the following
vehicles under a personal auto policy? -
,....ANSWER...Any vehicle not owned by the insured,
but furnished for use while the covered auto is out of
normal use because of repair.
Under the business auto coverage form, mobile
equipment is covered for liability insurance -
....ANSWER...When being carried or towed by a
covered auto
While cutting grass in your yard with your brother's
borrowed lawnmower, the fuel line ruptures and the
lawnmower is destroyed in the fire. How will your
HO liability react? - ....ANSWER...It will cover the
damage
The Residential Condominium Building Association
Policy (RCBAP) is used for residential condominium
building associations to cover the entire building
under one policy. Which of the following statements
about RCBAP is true? - ....ANSWER...It does not
protect the individual owner from loss to personal
property owned exclusively by the unit owner.
When the insured's car was totaled in a recent
accident, the owenership of the car was transferred
,to the insurer. The insurer then sold off the wrecked
car to recover some of the loss it paid to the insured.
What is the term for this action? -
....ANSWER...Salvage
Existing and replacing life insurers are required to
keep copies of all summaries, notices, and
statements used in sales transactions until the
conclusion of their next examination by the
Insurance Department, or for a period of at least. -
....ANSWER...5 years
If a person demands a hearing, the Commissioner of
Insurance must set the hearing within -
....ANSWER...30 days
Which surety bond guarantees that bills for labor
and materials will be paid by the contractor as they
are due? - ....ANSWER...Payment bond
When doing business in this state, an insurance
company that is formed under the law of another
state is known as which type of insurer? -
....ANSWER...Foreign
, While Workers Compensation is intended to be the
exclusive remedy for work related injuries, under
which of the following circumstance may an
employee or an employee's dependent sue the
employer? - ....ANSWER...When the damage result
from the intentional acts of the employer
In which of the following sections of a commercial
auto policy will you find specific information about
the policy period? - ....ANSWER...Conditions
What is the legal defense that can be used in most
states in which proportionate damages may be
awarded when both the plaintiff and defendant were
negligent? - ....ANSWER...Comparative negligence
The Insurance Department has received complaints
about a particular producer regarding policy-selling
conduct. What can be issued that would legally force
the producer to stop the acts in violation. -
....ANSWER...Cease and desist order
Which of the following is representative of the
minimum liability requirement for auto policies
issued in this state? - ....ANSWER...15/30/25
NEWEST ACTUAL EXAM COMPLETE
QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
While an insured was towing a utility trailer with his
auto, the trailer came loose and ran into a store
front. What part of the insured's auto policy would
pay for the damage to the store? -
....ANSWER...Property Damage Liability
Which program was established to encourage
employers to hire workers who may have suffered
previous work related injury that, when combined
with another injury, could be disabled to a greater
degree than that of the single injury? -
....ANSWER...Second Injury Fund
While an insured's covered auto is in the repair shop
following damage caused by a collision, the insured
would have coverage for which of the following
vehicles under a personal auto policy? -
,....ANSWER...Any vehicle not owned by the insured,
but furnished for use while the covered auto is out of
normal use because of repair.
Under the business auto coverage form, mobile
equipment is covered for liability insurance -
....ANSWER...When being carried or towed by a
covered auto
While cutting grass in your yard with your brother's
borrowed lawnmower, the fuel line ruptures and the
lawnmower is destroyed in the fire. How will your
HO liability react? - ....ANSWER...It will cover the
damage
The Residential Condominium Building Association
Policy (RCBAP) is used for residential condominium
building associations to cover the entire building
under one policy. Which of the following statements
about RCBAP is true? - ....ANSWER...It does not
protect the individual owner from loss to personal
property owned exclusively by the unit owner.
When the insured's car was totaled in a recent
accident, the owenership of the car was transferred
,to the insurer. The insurer then sold off the wrecked
car to recover some of the loss it paid to the insured.
What is the term for this action? -
....ANSWER...Salvage
Existing and replacing life insurers are required to
keep copies of all summaries, notices, and
statements used in sales transactions until the
conclusion of their next examination by the
Insurance Department, or for a period of at least. -
....ANSWER...5 years
If a person demands a hearing, the Commissioner of
Insurance must set the hearing within -
....ANSWER...30 days
Which surety bond guarantees that bills for labor
and materials will be paid by the contractor as they
are due? - ....ANSWER...Payment bond
When doing business in this state, an insurance
company that is formed under the law of another
state is known as which type of insurer? -
....ANSWER...Foreign
, While Workers Compensation is intended to be the
exclusive remedy for work related injuries, under
which of the following circumstance may an
employee or an employee's dependent sue the
employer? - ....ANSWER...When the damage result
from the intentional acts of the employer
In which of the following sections of a commercial
auto policy will you find specific information about
the policy period? - ....ANSWER...Conditions
What is the legal defense that can be used in most
states in which proportionate damages may be
awarded when both the plaintiff and defendant were
negligent? - ....ANSWER...Comparative negligence
The Insurance Department has received complaints
about a particular producer regarding policy-selling
conduct. What can be issued that would legally force
the producer to stop the acts in violation. -
....ANSWER...Cease and desist order
Which of the following is representative of the
minimum liability requirement for auto policies
issued in this state? - ....ANSWER...15/30/25
