WebCE questions with accurate answers
5. Andrea is the proud owner of a brand-new Ford Escape SUV that
replaces her aging Ford Ranger pickup. She has seen TV commercials
from an insurance company that promises to replace an insured auto
with a brand-new one if the insured vehicle is totaled, and she tells her
insurance agent she wants that coverage. The agent does not represent
the company in the TV commercials but does represent an insurance
company that has adopted the 2018 ISO personal auto policy forms.
What should the agent tell Andrea?
a. A replacement cost coverage endorsement can now be added to her
policy.
b. Replacement cost coverage only applies if the vehicle is totaled within
24 hours after its purchase.
c. The 2018 edition of the ISO PAP automatically includes replacement
cost physical damage coverage.
d. The coverage she wants can only be obtained from a few insurers.
Ans✓✓✓ a) That's correct! ISO's replacement cost coverage (PP 33 10)
endorsement, introduced in 2018, covers replacement cost due to total
loss of a covered auto if, among other conditions, the total loss occurs
within 24 months after the insured becomes the owner
After an accident has occurred, the insured or any party seeking
particular types of coverage is required to fulfill various duties. Those
duties fall into all of the following categories EXCEPT
a. duties affecting persons seeking uninsured motorist coverage.
b. notification of loss.
c. duties affecting persons seeking any coverage.
, d. duties affecting persons seeking medical payments coverage.
Ans✓✓✓ D) The fourth category of duties is duties affecting persons
seeking physical damage coverage.
After an accident with an uninsured motorist in which that motorist was
at fault, Kermit's insurer must determine his "legal entitlement" to
receive compensatory damages from the uninsured motorist. This will
involve all of the following steps EXCEPT:
a. Kermit must demonstrate that the uninsured motorist was at fault in
the accident.
b. Kermit must establish financial need for the compensatory damages.
c. Kermit must establish that the injuries he sustained were caused by
the accident.
d. It must be established that the uninsured motorist was legally liable.
Ans✓✓✓ B) That's correct! To collect compensatory damages, bodily
injury for which the insured was legally liable must be sustained by an
insured. In attempting to establish these facts, Kermit may find it's not
easy, but he does not need to prove he lacks the "green" (money) to pay
his medical expenses without the insurance.
All of the following are arbitration provisions for UM coverage
EXCEPT:
a. Both the insured and the insurer will each pay its individual
arbitration expenses and will share equally in the expenses of the third
arbitrator.
b. Arbitration occurs in the county in which the insured lives, unless the
parties agree otherwise.
, c. If the insurer and an insured do not agree on whether a particular
"insured" is entitled to recover damages or on the amount of damages,
then the matter may be arbitrated.
d. The arbitrators must be selected by a court. Ans✓✓✓ D) That's
correct! A court makes the selection only when the two arbitrators
chosen by the two parties, respectively, cannot, within 30 days, agree on
a third arbitrator.
All of the following are considered other-than-collision losses EXCEPT:
a. A severe hailstorm produces grapefruit-sized hail, breaking the
windshield and leaving multiple big dents in Cyndi's Prius.
b. A confused crow flies into the windshield of Christine's Toyota
Corolla, shattering it.
c. Garth hits a tree when he swerves to miss a recliner sitting in a lane
of the tollway.
d. Students angry with the final grades that Kathleen gave them spray-
painted graffiti on her Ford SUV. Ans✓✓✓ C) That's correct! Striking
the tree is a collision claim.
All of the following illustrate duties affecting persons seeking physical
damage coverage EXCEPT:
a. Jonathan has the damage to his Lexus caused by a hit-and-run driver
repaired as soon as possible and reports it to his insurer and the police
after it is repaired.
b. The top of Lorraine's Mustang convertible is damaged during a
hailstorm. Lorraine covers it with a tarp to prevent further damage.
5. Andrea is the proud owner of a brand-new Ford Escape SUV that
replaces her aging Ford Ranger pickup. She has seen TV commercials
from an insurance company that promises to replace an insured auto
with a brand-new one if the insured vehicle is totaled, and she tells her
insurance agent she wants that coverage. The agent does not represent
the company in the TV commercials but does represent an insurance
company that has adopted the 2018 ISO personal auto policy forms.
What should the agent tell Andrea?
a. A replacement cost coverage endorsement can now be added to her
policy.
b. Replacement cost coverage only applies if the vehicle is totaled within
24 hours after its purchase.
c. The 2018 edition of the ISO PAP automatically includes replacement
cost physical damage coverage.
d. The coverage she wants can only be obtained from a few insurers.
Ans✓✓✓ a) That's correct! ISO's replacement cost coverage (PP 33 10)
endorsement, introduced in 2018, covers replacement cost due to total
loss of a covered auto if, among other conditions, the total loss occurs
within 24 months after the insured becomes the owner
After an accident has occurred, the insured or any party seeking
particular types of coverage is required to fulfill various duties. Those
duties fall into all of the following categories EXCEPT
a. duties affecting persons seeking uninsured motorist coverage.
b. notification of loss.
c. duties affecting persons seeking any coverage.
, d. duties affecting persons seeking medical payments coverage.
Ans✓✓✓ D) The fourth category of duties is duties affecting persons
seeking physical damage coverage.
After an accident with an uninsured motorist in which that motorist was
at fault, Kermit's insurer must determine his "legal entitlement" to
receive compensatory damages from the uninsured motorist. This will
involve all of the following steps EXCEPT:
a. Kermit must demonstrate that the uninsured motorist was at fault in
the accident.
b. Kermit must establish financial need for the compensatory damages.
c. Kermit must establish that the injuries he sustained were caused by
the accident.
d. It must be established that the uninsured motorist was legally liable.
Ans✓✓✓ B) That's correct! To collect compensatory damages, bodily
injury for which the insured was legally liable must be sustained by an
insured. In attempting to establish these facts, Kermit may find it's not
easy, but he does not need to prove he lacks the "green" (money) to pay
his medical expenses without the insurance.
All of the following are arbitration provisions for UM coverage
EXCEPT:
a. Both the insured and the insurer will each pay its individual
arbitration expenses and will share equally in the expenses of the third
arbitrator.
b. Arbitration occurs in the county in which the insured lives, unless the
parties agree otherwise.
, c. If the insurer and an insured do not agree on whether a particular
"insured" is entitled to recover damages or on the amount of damages,
then the matter may be arbitrated.
d. The arbitrators must be selected by a court. Ans✓✓✓ D) That's
correct! A court makes the selection only when the two arbitrators
chosen by the two parties, respectively, cannot, within 30 days, agree on
a third arbitrator.
All of the following are considered other-than-collision losses EXCEPT:
a. A severe hailstorm produces grapefruit-sized hail, breaking the
windshield and leaving multiple big dents in Cyndi's Prius.
b. A confused crow flies into the windshield of Christine's Toyota
Corolla, shattering it.
c. Garth hits a tree when he swerves to miss a recliner sitting in a lane
of the tollway.
d. Students angry with the final grades that Kathleen gave them spray-
painted graffiti on her Ford SUV. Ans✓✓✓ C) That's correct! Striking
the tree is a collision claim.
All of the following illustrate duties affecting persons seeking physical
damage coverage EXCEPT:
a. Jonathan has the damage to his Lexus caused by a hit-and-run driver
repaired as soon as possible and reports it to his insurer and the police
after it is repaired.
b. The top of Lorraine's Mustang convertible is damaged during a
hailstorm. Lorraine covers it with a tarp to prevent further damage.
