CompuCram Exam with Complete Solutions|
Latest Update
Barry thinks he should buy insurance on his house because a neighbor's home was once hit by
lightning. What type of risk is this? An insurable risk
Who makes the offer in an insurance contract applicant
Is a catastrophic peril a elements of an insurable risk? No
Sam is injured at work, he turns the claim into his personal health insurance, his wife's insurance
since he is a covered spouse, and workers compensation. Sam is upset when he cannot collect
from all three policies. This is an example of the Principle of Indemnity.
what is the purpose of exclusions? eliminate losses caused by uninsurable perils.
If a person violates the co-insurance provisions of the policy, how much will be received in the
event of a total loss? the policy limit
The amount of losses paid out in comparison to the premiums received is referred to as
loss ratio.
An insured carries $25,000 property insurance with 80% co-insurance on a building worth
$40,000. How much would she collect in the event of a total loss? $25,000
,George insures his $200,000 building with two insurers. Company X provides $120,000 and
Company Z provides $80,000. If George suffers a $5,000 covered loss, how much will each
insurer pay, respectively? $3,000/$2,000
You have a DP-3 covering a home that has a replacement value of $100,000. You carry $60,000
of insurance. Following a loss, you determine that it would cost $12,000 to replace the damaged
portion of the home. How much could the insured collect, assuming the ACV of the loss is
$6,000? $9,000 - In order to determine the amount of payment, you must divide the
amount the insured did carry ($60,000) by the amount the insured should have carried ($80,000),
then multiply that by the amount of the loss ($12,000). This will result in a $9,000 payment. The
ACV of the loss ($6,000) is worthless information for this question.
Is It automatically covers property of roomers or boarders covered in the broad theft coverage
endorsement? no
The Home Day Care endorsement (HO 04 97) would exclude all of the following, EXCEPT
liability on the premises. - The Home Day Care endorsement extends the liability from
section II to the day care activities on the insured's premises. It does not cover activities off the
premises, in a motor vehicle, or physical abuse through corporal punishment.
Are golf carts used on the golf course included on liability coverage on the homeowners policy?
Yes
Tim purchases a homeowners policy worth $700,000 with a 4% deductible. A few months later, a
hailstorm destroys his roof, porch, and windows, causing $50,000 in damages. Tim should
, expect_______ from the insurance company to pay for the damages. $22,000 - A 4%
deductible is based on the coverage limit of $700,000. 4% of $700,000 is $28,000 which would
be the deductible. Subtracting that from the $50,000 in damages would net Tim $22,000.
Torts involving such things as libel, slander, wrongful eviction, defamation of character, etc., are
covered under the homeowners policy by utilizing what endorsement? personal injury
Can a Private residence in which the owner occupant also maintains an office for an accounting
business be insured under a unendorsed homeowners policy? Yes
Would a insured injured driving the company truck on the job be excluded by a policy providing
automobile medical payments insurance? Yes it would be excluded
Uninsured motorists property damage is an optional coverage that has a minimum deductible of
$250
Under the Personal Auto Policy, if a driver runs off the road, and damages his car when he hits a
tree, the basis for the claim settlement is collision.
Is Medical payments coverage available under the physical damage section of the business auto
policy? No
The limits of liability for uninsured and underinsured motorists coverage can be equal to
(but not greater than) the bodily injury liability limit.
Latest Update
Barry thinks he should buy insurance on his house because a neighbor's home was once hit by
lightning. What type of risk is this? An insurable risk
Who makes the offer in an insurance contract applicant
Is a catastrophic peril a elements of an insurable risk? No
Sam is injured at work, he turns the claim into his personal health insurance, his wife's insurance
since he is a covered spouse, and workers compensation. Sam is upset when he cannot collect
from all three policies. This is an example of the Principle of Indemnity.
what is the purpose of exclusions? eliminate losses caused by uninsurable perils.
If a person violates the co-insurance provisions of the policy, how much will be received in the
event of a total loss? the policy limit
The amount of losses paid out in comparison to the premiums received is referred to as
loss ratio.
An insured carries $25,000 property insurance with 80% co-insurance on a building worth
$40,000. How much would she collect in the event of a total loss? $25,000
,George insures his $200,000 building with two insurers. Company X provides $120,000 and
Company Z provides $80,000. If George suffers a $5,000 covered loss, how much will each
insurer pay, respectively? $3,000/$2,000
You have a DP-3 covering a home that has a replacement value of $100,000. You carry $60,000
of insurance. Following a loss, you determine that it would cost $12,000 to replace the damaged
portion of the home. How much could the insured collect, assuming the ACV of the loss is
$6,000? $9,000 - In order to determine the amount of payment, you must divide the
amount the insured did carry ($60,000) by the amount the insured should have carried ($80,000),
then multiply that by the amount of the loss ($12,000). This will result in a $9,000 payment. The
ACV of the loss ($6,000) is worthless information for this question.
Is It automatically covers property of roomers or boarders covered in the broad theft coverage
endorsement? no
The Home Day Care endorsement (HO 04 97) would exclude all of the following, EXCEPT
liability on the premises. - The Home Day Care endorsement extends the liability from
section II to the day care activities on the insured's premises. It does not cover activities off the
premises, in a motor vehicle, or physical abuse through corporal punishment.
Are golf carts used on the golf course included on liability coverage on the homeowners policy?
Yes
Tim purchases a homeowners policy worth $700,000 with a 4% deductible. A few months later, a
hailstorm destroys his roof, porch, and windows, causing $50,000 in damages. Tim should
, expect_______ from the insurance company to pay for the damages. $22,000 - A 4%
deductible is based on the coverage limit of $700,000. 4% of $700,000 is $28,000 which would
be the deductible. Subtracting that from the $50,000 in damages would net Tim $22,000.
Torts involving such things as libel, slander, wrongful eviction, defamation of character, etc., are
covered under the homeowners policy by utilizing what endorsement? personal injury
Can a Private residence in which the owner occupant also maintains an office for an accounting
business be insured under a unendorsed homeowners policy? Yes
Would a insured injured driving the company truck on the job be excluded by a policy providing
automobile medical payments insurance? Yes it would be excluded
Uninsured motorists property damage is an optional coverage that has a minimum deductible of
$250
Under the Personal Auto Policy, if a driver runs off the road, and damages his car when he hits a
tree, the basis for the claim settlement is collision.
Is Medical payments coverage available under the physical damage section of the business auto
policy? No
The limits of liability for uninsured and underinsured motorists coverage can be equal to
(but not greater than) the bodily injury liability limit.
