RMIN Exam 3 questions well answered
to pass
Which of the following statements is true regarding auto accidents in the U.S.?
A. The rate of auto accident fatalities has declined over the past 30 years
B. Men have a higher proportion of fatal accidents than women at most ages
C. Young drivers account for a disproportionate number of fatal auto accidents
D. All of the above - correct answer ✔✔All of the above
Because Y's car is broken down, Y borrows his son's car to run an errand. The son, who lives
with Y in the same household, does not have his car insured. If Y has an accident, would Y's PAP
cover him? Explain why or why not. - correct answer ✔✔Yes, coverage exists on the basis that
the son's car is a temporary substitute automobile
Elisa has a PAP with the minimum limits required in Louisiana. She is involved in an accident that
injures Sammie, the driver in the other car. Sammie sues Elisa's insurer for $13,000 in medical
bills from the accident and wins. The next year Sammies sues the insurer for another $5,000.
Elisa and her insurer both think this is suspicious because it is a totally unrelated injury to his
original injury. The insurer decides not to fight the suit and pays Sammie $2,000. Which of the
following would happen next if Sammie continues to say he needs another $3,000? - correct
answer ✔✔The insurer will not defend Elisa or pay the $3,000 because Elisa's per person bodily
injury limits were exhausted.
Tracie is a Louisiana resident who carries a PAP with the minimum amount of insurance required
in her state. Heading to visit a friend, Tracie is driving in Arkansas where the liability minimum
requirements are $25,000/$50,000/$25,000. If Tracie has an accident in Arkansas, that is her
fault, which of the following is true about her liability coverage? - correct answer ✔✔Tracie has
more BI liability (per person/per accident) but the same PD liability per accident
,T or F: Both Medical Payments and Uninsured Motorist coverage in a PAP ONLY pays if the
insured is not at fault for the accident. - correct answer ✔✔False
Match the loss with the applicable PAP coverage: - correct answer ✔✔John accidentally backs
into a tree and causes significant damage to his car - collision
Marge's car is significantly damaged by hail - other than collision
David accidentally hits a pedestrian and is sued - liability
Katrice is in an accident that she thinks might have been her fault. What IS one of her duties
after an accident? - correct answer ✔✔Sending any important legal reports about the accident
to the insurer
Systems that track your driving behavior, including when you drive, how many hard stops you
have, and how often you rapidly accelerate are commonly known as: - correct answer
✔✔Telematics
Under automobile rating methods, what factor below contributes to a rate reduction? - correct
answer ✔✔Being older than a teenager
What is the primary proposal that is being put forth in an effort to reduce auto insurance rates
in Louisiana? - correct answer ✔✔Reducing the jury-trial threshold to $5,000
Which of the following is NOT true of homeowners insurance and the homeowners industry
A. Most catastrophic losses have been paid for by homeowners insurance
B. The homeowners policy is a personal lines package policy
, C. Premiums tend to stay the same every year
D. Losses from the costliest insured catastrophe in history were mostly in Louisiana - correct
answer ✔✔Premiums tend to stay the same the following year
Which of the following is true regarding today's homeowners' policies? - correct answer
✔✔They are less expensive than purchasing each included coverage separately would be
Match the policy with the appropriate users: - correct answer ✔✔HO-4 - Renters
HO-3 - Owner-occupants
HO-6 - Condominium unit owners
Kat has an HO-3 covering her home. The dwelling coverage (Coverage A) limit is $250,000. She
has a terrible fire with $240,000 of damage to the home and $25,000 to the garage. How much
coverage will she have on the garage after the $240,000 has been spent on the home? - correct
answer ✔✔She will only have the full $25,000 if the garage is unattached and only $10,000 if
the garage is attached
Match the piece of property with the HO-3 coverage used to cover that type of property. -
correct answer ✔✔Your home - Coverage A
Your furniture - Coverage C
Your shed that sits at the back of your backyard - Coverage B
Your garage attached by a roof to the main home - Coverage A
The Jackson's have 3 children away at college. Two of them live in the same apartment and the
other attends a different university. Their contents coverage (Coverage C) is a total of $150,000.
How much total coverage do they have for all three children? - correct answer ✔✔$30,000
Xavier has an HO-3 with $150,000 of coverage and the standard 50% for Coverage C. His gun
collection is destroyed in a fire. What is the maximum amount he can be reimbursed under
Coverage C for this gun collection? - correct answer ✔✔$75,000
to pass
Which of the following statements is true regarding auto accidents in the U.S.?
A. The rate of auto accident fatalities has declined over the past 30 years
B. Men have a higher proportion of fatal accidents than women at most ages
C. Young drivers account for a disproportionate number of fatal auto accidents
D. All of the above - correct answer ✔✔All of the above
Because Y's car is broken down, Y borrows his son's car to run an errand. The son, who lives
with Y in the same household, does not have his car insured. If Y has an accident, would Y's PAP
cover him? Explain why or why not. - correct answer ✔✔Yes, coverage exists on the basis that
the son's car is a temporary substitute automobile
Elisa has a PAP with the minimum limits required in Louisiana. She is involved in an accident that
injures Sammie, the driver in the other car. Sammie sues Elisa's insurer for $13,000 in medical
bills from the accident and wins. The next year Sammies sues the insurer for another $5,000.
Elisa and her insurer both think this is suspicious because it is a totally unrelated injury to his
original injury. The insurer decides not to fight the suit and pays Sammie $2,000. Which of the
following would happen next if Sammie continues to say he needs another $3,000? - correct
answer ✔✔The insurer will not defend Elisa or pay the $3,000 because Elisa's per person bodily
injury limits were exhausted.
Tracie is a Louisiana resident who carries a PAP with the minimum amount of insurance required
in her state. Heading to visit a friend, Tracie is driving in Arkansas where the liability minimum
requirements are $25,000/$50,000/$25,000. If Tracie has an accident in Arkansas, that is her
fault, which of the following is true about her liability coverage? - correct answer ✔✔Tracie has
more BI liability (per person/per accident) but the same PD liability per accident
,T or F: Both Medical Payments and Uninsured Motorist coverage in a PAP ONLY pays if the
insured is not at fault for the accident. - correct answer ✔✔False
Match the loss with the applicable PAP coverage: - correct answer ✔✔John accidentally backs
into a tree and causes significant damage to his car - collision
Marge's car is significantly damaged by hail - other than collision
David accidentally hits a pedestrian and is sued - liability
Katrice is in an accident that she thinks might have been her fault. What IS one of her duties
after an accident? - correct answer ✔✔Sending any important legal reports about the accident
to the insurer
Systems that track your driving behavior, including when you drive, how many hard stops you
have, and how often you rapidly accelerate are commonly known as: - correct answer
✔✔Telematics
Under automobile rating methods, what factor below contributes to a rate reduction? - correct
answer ✔✔Being older than a teenager
What is the primary proposal that is being put forth in an effort to reduce auto insurance rates
in Louisiana? - correct answer ✔✔Reducing the jury-trial threshold to $5,000
Which of the following is NOT true of homeowners insurance and the homeowners industry
A. Most catastrophic losses have been paid for by homeowners insurance
B. The homeowners policy is a personal lines package policy
, C. Premiums tend to stay the same every year
D. Losses from the costliest insured catastrophe in history were mostly in Louisiana - correct
answer ✔✔Premiums tend to stay the same the following year
Which of the following is true regarding today's homeowners' policies? - correct answer
✔✔They are less expensive than purchasing each included coverage separately would be
Match the policy with the appropriate users: - correct answer ✔✔HO-4 - Renters
HO-3 - Owner-occupants
HO-6 - Condominium unit owners
Kat has an HO-3 covering her home. The dwelling coverage (Coverage A) limit is $250,000. She
has a terrible fire with $240,000 of damage to the home and $25,000 to the garage. How much
coverage will she have on the garage after the $240,000 has been spent on the home? - correct
answer ✔✔She will only have the full $25,000 if the garage is unattached and only $10,000 if
the garage is attached
Match the piece of property with the HO-3 coverage used to cover that type of property. -
correct answer ✔✔Your home - Coverage A
Your furniture - Coverage C
Your shed that sits at the back of your backyard - Coverage B
Your garage attached by a roof to the main home - Coverage A
The Jackson's have 3 children away at college. Two of them live in the same apartment and the
other attends a different university. Their contents coverage (Coverage C) is a total of $150,000.
How much total coverage do they have for all three children? - correct answer ✔✔$30,000
Xavier has an HO-3 with $150,000 of coverage and the standard 50% for Coverage C. His gun
collection is destroyed in a fire. What is the maximum amount he can be reimbursed under
Coverage C for this gun collection? - correct answer ✔✔$75,000
