State Farm P/C 9&10 Exam Questions
and Answers
Financial responsibility law - Answers -Every state requires that each person be able to
prove he is financially prepared if involved in an accident. Suppose your state requires
minimum liability limits of 25/50/10. What is the name of that law?
The loss is covered under an unendorsed policy. - Answers -An insured rents a car
while on vacation in Canada and causes an accident. What coverage is provided for this
loss under the
personal auto policy?
Collision - Answers -While backing her car into a parking space on a neighborhood
street, Melanie struck a fire hydrant with her bumper. Which coverage under Melanie's
personal auto policy (PAP) will cover the damage to the bumper?
Part A. - Answers -While driving to work, Leonard is eating his breakfast, reviewing his
appointment book, and talking on his cell phone. He runs a red light and collides with a
commuter van. The van's occupants are hospitalized. Which part of Leonard's personal
auto policy covers the occupants' injuries and damage to the van?
the occupant of the car struck by the insured - Answers -The insured rearends another
vehicle that is stopped at a red light. The driver of the car struck by the insured is badly
injured. The insured, his daughter and her friend were in the car and were also injured.
Part B of the insured's personal auto policy will pay medical expenses for all of the
following EXCEPT:
$10,000 - Answers -The insured has an auto policy with liability limits of 30/60/10. He
negligently runs off the road and causes $70,000 damage to
an apartment building. How much will the policy pay for the damage to the building?
No property can be denied coverage by a FAIR Plan. - Answers -Which of the following
statements about the FAIR Plan is NOT correct?
collision - Answers -Automobile comprehensive coverage insures all of the following
perils EXCEPT
reducing Coverage C limit to 40% of Coverage A. - Answers -Premium credits for all of
the following will lower the insurance premiums for the owner of a mobile home
EXCEPT:
, Maggie, her older sister, who lives with Jane. - Answers -Jane insures her car with ABC
Insurers. Which of the following individuals best describes a family member on Jane's
policy?
Actual cash value or cost to repair or replace, whichever is less. - Answers -Physical
damage losses under the personal auto policy are reimbursed on what basis?
Other than collision - Answers -What part of the personal auto policy covers losses
caused by malicious mischief, vandalism, hail, or floods?
Silo - Answers -Which of the following property may be insured under a flood policy
issued by the NFIP?
Vicarious liability. - Answers -Which one of the following principles is used to describe
liability resulting from the negligence of a person who uses an auto
with the insured's permission?
Funeral expenses for the insured - Answers -Which one of the following would NOT be
paid as supplementary payments under Part A of a personal auto policy?
it provides thirdparty coverage. - Answers -Personal injury protection (PIP) is a form of
nofault auto insurance. All of the following characteristics of PIP are correct EXCEPT:
Protection and indemnity insurance. - Answers -Yacht policies provide physical
damages and liability coverage. What is the liability section called?
The driver's automobile policy under the property damage liability provisions. - Answers
-While driving down the street, an insured swerves to avoid a pedestrian, goes over a
curb, and damages a neighbor's fence.
Which of the following will pay for the repairs to the fence?
Prevents the insured or injured person from collecting medical payments from more
than one policy or coverage, such as uninsured motorist. - Answers -What is a
nostacking rule?
30 days after the date of application and payment of premium. - Answers -When does
flood insurance take effect?
Arbitration. - Answers -If a dispute arises over whether an insured is entitled to
uninsured motorists coverage, what process is used to settle the
dispute?
UMPD - Answers -If a vehicle is insured for collision, this coverage waives the
deductible. What is this coverage?
and Answers
Financial responsibility law - Answers -Every state requires that each person be able to
prove he is financially prepared if involved in an accident. Suppose your state requires
minimum liability limits of 25/50/10. What is the name of that law?
The loss is covered under an unendorsed policy. - Answers -An insured rents a car
while on vacation in Canada and causes an accident. What coverage is provided for this
loss under the
personal auto policy?
Collision - Answers -While backing her car into a parking space on a neighborhood
street, Melanie struck a fire hydrant with her bumper. Which coverage under Melanie's
personal auto policy (PAP) will cover the damage to the bumper?
Part A. - Answers -While driving to work, Leonard is eating his breakfast, reviewing his
appointment book, and talking on his cell phone. He runs a red light and collides with a
commuter van. The van's occupants are hospitalized. Which part of Leonard's personal
auto policy covers the occupants' injuries and damage to the van?
the occupant of the car struck by the insured - Answers -The insured rearends another
vehicle that is stopped at a red light. The driver of the car struck by the insured is badly
injured. The insured, his daughter and her friend were in the car and were also injured.
Part B of the insured's personal auto policy will pay medical expenses for all of the
following EXCEPT:
$10,000 - Answers -The insured has an auto policy with liability limits of 30/60/10. He
negligently runs off the road and causes $70,000 damage to
an apartment building. How much will the policy pay for the damage to the building?
No property can be denied coverage by a FAIR Plan. - Answers -Which of the following
statements about the FAIR Plan is NOT correct?
collision - Answers -Automobile comprehensive coverage insures all of the following
perils EXCEPT
reducing Coverage C limit to 40% of Coverage A. - Answers -Premium credits for all of
the following will lower the insurance premiums for the owner of a mobile home
EXCEPT:
, Maggie, her older sister, who lives with Jane. - Answers -Jane insures her car with ABC
Insurers. Which of the following individuals best describes a family member on Jane's
policy?
Actual cash value or cost to repair or replace, whichever is less. - Answers -Physical
damage losses under the personal auto policy are reimbursed on what basis?
Other than collision - Answers -What part of the personal auto policy covers losses
caused by malicious mischief, vandalism, hail, or floods?
Silo - Answers -Which of the following property may be insured under a flood policy
issued by the NFIP?
Vicarious liability. - Answers -Which one of the following principles is used to describe
liability resulting from the negligence of a person who uses an auto
with the insured's permission?
Funeral expenses for the insured - Answers -Which one of the following would NOT be
paid as supplementary payments under Part A of a personal auto policy?
it provides thirdparty coverage. - Answers -Personal injury protection (PIP) is a form of
nofault auto insurance. All of the following characteristics of PIP are correct EXCEPT:
Protection and indemnity insurance. - Answers -Yacht policies provide physical
damages and liability coverage. What is the liability section called?
The driver's automobile policy under the property damage liability provisions. - Answers
-While driving down the street, an insured swerves to avoid a pedestrian, goes over a
curb, and damages a neighbor's fence.
Which of the following will pay for the repairs to the fence?
Prevents the insured or injured person from collecting medical payments from more
than one policy or coverage, such as uninsured motorist. - Answers -What is a
nostacking rule?
30 days after the date of application and payment of premium. - Answers -When does
flood insurance take effect?
Arbitration. - Answers -If a dispute arises over whether an insured is entitled to
uninsured motorists coverage, what process is used to settle the
dispute?
UMPD - Answers -If a vehicle is insured for collision, this coverage waives the
deductible. What is this coverage?
