Arizona Adjuster - Property & Casualty
Exam Simulator - Series 13-36
Under the BOP, how much would be paid for any one tree, shrub, or plant
in case of a covered cause of loss? correct answersThe policy provides a
limit of no more than
$1,000 on any one tree, shrub, or plant with a total limit of $2,500. The
older
forms provided $500.
Name the coverage that applies to the extra cost the insured incurs to
make temporary repairs and speed up the permanent
repairs or replacement of damaged covered equipment under an Equipment
Breakdown policy. correct answersThis is called expediting expense
coverage.
The homeowner policy written to cover only personal property and
personal liability is called an: correct answersThis is the HO-4 also referred
to as a tenant's homeowner policy or renters insurance.
When a first party claim is made, what must be listed on the payment
draft? correct answersWhen a claim payment is made, an indication of
the type of coverage under which the payment is made must be stated
on the draft payment.
Which of the following would NOT meet the definition for coverage to
apply under the uninsured motorist coverage in
Arizona?
The insured was struck as a pedestrian by an uninsured motorist.
One who has coverage in excess of the financial responsibility
requirement.
An uninsured motorist that causes an accident resulting in bodily injury
without making contact with that
person.
An uninsured motorist makes contact with the claimant's vehicle. correct
answersIn Arizona, there must be contact with the uninsured motorist
and the claimant, or the claimant's vehicle. Unless the claimant
can provide additional and confirming testimony, facts and/or evidence
that another unidentified vehicle caused the accident.
All of the following are sections of a CGL form,
EXCEPT: Conditions.
Definitions.
Prior Acts coverage.
Who is an insured. correct answersPrior Acts
coverage.
,Although wording in the policy could exclude coverage for prior acts and
events that happened prior to the policy, that is not
a section of the policy. The other three choices are all separate sections
of the CGL.
Under an HO-3 policy, what coverage is provided for watercraft lost
due to theft? None; watercraft is excluded.
None; theft is not covered.
Up to the actual cash value of the watercraft.
$1500 maximum, under Special Limits. correct answers$1500 maximum,
under Special Limits is correct.
Under personal property coverage, HO policies have several categories of
property with "special limits." Among them is
"watercraft of all types, including their trailers" For this property, the special
limit is
$1500. Theft of watercraft and their
accessories are covered on the insured's residence premises only and
not off the premises. A watercraft policy is needed for
the broader coverage.
Telemarketers who transmit pre-recorded messages to consumers who
have not agreed to accept such messages will be fined up to:
$10,000 aggregate.
$10,000 per call.
$16,000 per call.
$16,000 aggregate. correct answersThe correct answer is: $16,000 per
call. Beginning September 1, 2009 the penalty for transmitting pre-
recorded messages to those who have not agreed to them is
$16,000 per call
Which of the following is correct in order for the additional coverage of
collapse to be available in the special BOP?
The collapse must be such that the building can not be used as
intended. The remaining part of the structure standing must be
demolished.
The remaining part of the structure must be judged unsound to
rebuild on.
The building must be leaning, settling or in danger of collapsing. correct
answersThe correct answer is: The collapse must be such that the
building can not be used as intended.
The definition of collapse in the policy is the "abrupt falling down or
caving in of the structure or part of the structure" and it
must render the building as unusable as intended.
Dan insures a home for adequate limits under a DP-2. If a flood causes
$1,000 in damage, what is the maximum the
insurer will pay, disregarding deductibles?
$0.
$750.
$900.
, $1,000. correct answers$0 is correct.
Flood is an excluded peril under all the dwelling forms unless fire ensues
and then only the loss caused by fire is covered.
Under the commercial property condominium association form, coverage is
based on: The commercial property form.
The association agreement and
bylaws. The special cause of loss
form.
State and local ordinances. correct answersThe correct answer is: The
association agreement and bylaws.
The coverage provided by the form will be based on the condominium
association agreement and by laws.
Which of the following terms most closely supports insurable
interest? Actual cash value.
Indemnity.
Replacement cost.
Fair market value. correct answersIndemnity is correct.
Insurable interest is economic interest or financial stake in property. You
have insurable interest when you have something
to lose if the property is lost, stolen, or destroyed. When you have
insurable interest, you are keen to keep that property safe
from harm. You obtain insurable interest in three main ways: when you
own property, have property of others in your
possession, or have legal title to property through a lien,. If there is a
insured loss, you will be indemnified, or made whole,
only up to your insurable interest. Thus the term indemnity supports
insurable interest.
A deductible that is commonly used in aircraft physical damage insurance
is usually: A flat deductible.
A franchise deductible.
A percentage of the value of the aircraft.
A disappearing deductible. correct answersA percentage of the value of the
aircraft. is correct.
The deductible is usually expressed as a percentage of the value of the
aircraft.
Agent Rice informs the insured that he needs to run the motor vehicle
records of all of the drivers in the household per company requirements.
This is an example of Agent Rice's:
Fiduciary Authority.
Expressed
Authority.
Apparent
Authority.
Implied Authority.
correct
answersImplied
Authority is
correct.
Implied authority is the authority the agent believes he has in order
to do his job properly. In order to write auto insurance,
Exam Simulator - Series 13-36
Under the BOP, how much would be paid for any one tree, shrub, or plant
in case of a covered cause of loss? correct answersThe policy provides a
limit of no more than
$1,000 on any one tree, shrub, or plant with a total limit of $2,500. The
older
forms provided $500.
Name the coverage that applies to the extra cost the insured incurs to
make temporary repairs and speed up the permanent
repairs or replacement of damaged covered equipment under an Equipment
Breakdown policy. correct answersThis is called expediting expense
coverage.
The homeowner policy written to cover only personal property and
personal liability is called an: correct answersThis is the HO-4 also referred
to as a tenant's homeowner policy or renters insurance.
When a first party claim is made, what must be listed on the payment
draft? correct answersWhen a claim payment is made, an indication of
the type of coverage under which the payment is made must be stated
on the draft payment.
Which of the following would NOT meet the definition for coverage to
apply under the uninsured motorist coverage in
Arizona?
The insured was struck as a pedestrian by an uninsured motorist.
One who has coverage in excess of the financial responsibility
requirement.
An uninsured motorist that causes an accident resulting in bodily injury
without making contact with that
person.
An uninsured motorist makes contact with the claimant's vehicle. correct
answersIn Arizona, there must be contact with the uninsured motorist
and the claimant, or the claimant's vehicle. Unless the claimant
can provide additional and confirming testimony, facts and/or evidence
that another unidentified vehicle caused the accident.
All of the following are sections of a CGL form,
EXCEPT: Conditions.
Definitions.
Prior Acts coverage.
Who is an insured. correct answersPrior Acts
coverage.
,Although wording in the policy could exclude coverage for prior acts and
events that happened prior to the policy, that is not
a section of the policy. The other three choices are all separate sections
of the CGL.
Under an HO-3 policy, what coverage is provided for watercraft lost
due to theft? None; watercraft is excluded.
None; theft is not covered.
Up to the actual cash value of the watercraft.
$1500 maximum, under Special Limits. correct answers$1500 maximum,
under Special Limits is correct.
Under personal property coverage, HO policies have several categories of
property with "special limits." Among them is
"watercraft of all types, including their trailers" For this property, the special
limit is
$1500. Theft of watercraft and their
accessories are covered on the insured's residence premises only and
not off the premises. A watercraft policy is needed for
the broader coverage.
Telemarketers who transmit pre-recorded messages to consumers who
have not agreed to accept such messages will be fined up to:
$10,000 aggregate.
$10,000 per call.
$16,000 per call.
$16,000 aggregate. correct answersThe correct answer is: $16,000 per
call. Beginning September 1, 2009 the penalty for transmitting pre-
recorded messages to those who have not agreed to them is
$16,000 per call
Which of the following is correct in order for the additional coverage of
collapse to be available in the special BOP?
The collapse must be such that the building can not be used as
intended. The remaining part of the structure standing must be
demolished.
The remaining part of the structure must be judged unsound to
rebuild on.
The building must be leaning, settling or in danger of collapsing. correct
answersThe correct answer is: The collapse must be such that the
building can not be used as intended.
The definition of collapse in the policy is the "abrupt falling down or
caving in of the structure or part of the structure" and it
must render the building as unusable as intended.
Dan insures a home for adequate limits under a DP-2. If a flood causes
$1,000 in damage, what is the maximum the
insurer will pay, disregarding deductibles?
$0.
$750.
$900.
, $1,000. correct answers$0 is correct.
Flood is an excluded peril under all the dwelling forms unless fire ensues
and then only the loss caused by fire is covered.
Under the commercial property condominium association form, coverage is
based on: The commercial property form.
The association agreement and
bylaws. The special cause of loss
form.
State and local ordinances. correct answersThe correct answer is: The
association agreement and bylaws.
The coverage provided by the form will be based on the condominium
association agreement and by laws.
Which of the following terms most closely supports insurable
interest? Actual cash value.
Indemnity.
Replacement cost.
Fair market value. correct answersIndemnity is correct.
Insurable interest is economic interest or financial stake in property. You
have insurable interest when you have something
to lose if the property is lost, stolen, or destroyed. When you have
insurable interest, you are keen to keep that property safe
from harm. You obtain insurable interest in three main ways: when you
own property, have property of others in your
possession, or have legal title to property through a lien,. If there is a
insured loss, you will be indemnified, or made whole,
only up to your insurable interest. Thus the term indemnity supports
insurable interest.
A deductible that is commonly used in aircraft physical damage insurance
is usually: A flat deductible.
A franchise deductible.
A percentage of the value of the aircraft.
A disappearing deductible. correct answersA percentage of the value of the
aircraft. is correct.
The deductible is usually expressed as a percentage of the value of the
aircraft.
Agent Rice informs the insured that he needs to run the motor vehicle
records of all of the drivers in the household per company requirements.
This is an example of Agent Rice's:
Fiduciary Authority.
Expressed
Authority.
Apparent
Authority.
Implied Authority.
correct
answersImplied
Authority is
correct.
Implied authority is the authority the agent believes he has in order
to do his job properly. In order to write auto insurance,
