Guarantee ExamFX, Idaho Personal Lines
Simulation FINAL Exam WITH 100% VERIFIED
ANSWERS//////UPDATED VERSION 2025
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 a life estate
arrangement when dwelling coverage is at least
80% of the current replacement cost.
3. One co-owner when each distinct portion of a two-
family dwelling is occupied by co-owners.
4. The intended owner-occupant of a dwelling under
construction.=====The owner-occupant of a
condominium unit.
Simulation FINAL Exam WITH 100% VERIFIED
ANSWERS//////UPDATED VERSION 2025
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 a life estate
arrangement when dwelling coverage is at least
80% of the current replacement cost.
3. One co-owner when each distinct portion of a two-
family dwelling is occupied by co-owners.
4. The intended owner-occupant of a dwelling under
construction.=====The owner-occupant of a
condominium unit.
