Personal Lines Insurance Practice Exam
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Terms in this set (190)
Bobby, age 16, borrows his parents' D) Bobby is covered by his parents' policy because
car without their permission and gets he is a family member.
into an accident. Which of the
following statements about Explanation: Bobby is a family member and thus
coverage under the parents' automatically is covered under the family's PAP
personal auto policy is CORRECT? policy. Even though Bobby is using the car without
permission, the exclusion pertaining to
A) Bobby is covered by his parents' nonpermissive users does not apply to use of an
policy because he is included in the owned auto policy by resident family members.
definition of named insured.
B) Bobby is not covered for this Reference: 8.7.2 in License Exam Manual
accident because he used the car
without permission.
C) Bobby is not covered because it
was not his car.
D) Bobby is covered by his parents'
policy because he is a family
member.
,A parking valet at a hotel uses a C) subrogate against the parking valet
guest's car to do a personal errand
and damages the car in a collision. Explanation: Part-D coverage for Damage to Your
The guest has a personal auto policy Auto of the PAP contains a no benefit to bailee
(PAP). The insurance company will provision. This provision states that a carrier or
pay the claim and ____. other bailee for hire, such as a parking gar5age,
service station, or moving company will not
A) relieve the parking valet of legal directly or indirectly benefit from the PAP's
liability for the loss insurance. A bailee is an individual or entity that
B) subrogate against the named assumes possession of goods owned by another
insured for the purpose of transporting, servicing, or
C) subrogate against the parking storing them. When temporary custody is assumed,
valet the bailee becomes legally liable for the goods.
D) recover any additional loss from
the lienholder Reference: 8.7.2 in the License Exam Manual
Who of the following are required to A) All insurers that write the types of insurance that
be members of the Arizona Property are protected by the fund in Arizona
and Casualty Insurance Guaranty
Fund? Explanation: All insurers that write types of
insurance that are protected by the fund are
A) All insurers that write the types of required to be member insurers of the fund.
insurance that are protected by the Reference: State Supplement in the License Exam
fund in Arizona Manual.
B) Foreign property and casualty
insurers only Reference: 4.4.16.3 in the License Exam Manual
C) lien property and casualty
insurers only
D) All insurers that write insurance in
Arizona, including life and health
insurers
,Which one of the following dwellings C) Single-family home
would a HO-3 Homeowners Form
cover? Explanation: HO-3 Homeowners Form covers
owner-occupied single family dwellings.
A) Condominium Condominiums are covered by the HO-6. Office
B) Office building and apartment buildings would be covered by a
C) Single-family home commercial policy.
D) Apartment building
Reference: 7.4.1 in the License Exam Manual
Which on of the following would be A) Pain and suffering
classified as a general damage?
Explanation: Compensatory damages compensate
A) Pain and suffering an injured party for injuries sustained- nothing
B) Lost wages more. Their purpose is to make a person whole
C) Medical bills again in the position that existed before the loss or
D) Damaged property harm. Compensatory damages are further
categorized by: general damages (which
necessarily result from the act or omission, such as
emotional distress, inconvenience, and pain and
suffering) and special damages (losses measured in
exact sums of money including medical bills, travel
expenses for medical care, prescription costs
damaged property, and lost wages).
Reference: 5.3.6 in the License Exam Manual
, Which of the following statements D) Personal property in a basement or outside in
about flood insurance is NOT the yard is covered
correct?
Explanation: Personal property in a basement or
A) There are two types of flood outside in the yard is NOT covered under flood
insurance programs available: insurance.
emergency and regular
B) A flood includes an overflow of Reference: 9.4 in the License Exam Manual
inland or tidal waters
C) Sewer backup into a dwelling is
not considered flood and is not
covered
D) Personal property in a basement
or outside in the yard is covered
Which of the following coverages is C) Longshore and harbor workers' compensation
NOT included in a insurance
boatowners/watercraft package
policy? Explanation: Boatowners/watercraft package
policies were developed by individual insurance
A) Medical payments companies and they combine property, liability,
B) Liability and medical payments insurance on an open peril
C) Longshore and harbor workers' basis. Longshore and harbor workers'
compensation insurance compensation insurance is found in personal yacht
D) Property policies, which are used to insure larger vessels
than those covered under boatowners policies.
Reference: 9.8.1 in the License Exam Manual
Save
Terms in this set (190)
Bobby, age 16, borrows his parents' D) Bobby is covered by his parents' policy because
car without their permission and gets he is a family member.
into an accident. Which of the
following statements about Explanation: Bobby is a family member and thus
coverage under the parents' automatically is covered under the family's PAP
personal auto policy is CORRECT? policy. Even though Bobby is using the car without
permission, the exclusion pertaining to
A) Bobby is covered by his parents' nonpermissive users does not apply to use of an
policy because he is included in the owned auto policy by resident family members.
definition of named insured.
B) Bobby is not covered for this Reference: 8.7.2 in License Exam Manual
accident because he used the car
without permission.
C) Bobby is not covered because it
was not his car.
D) Bobby is covered by his parents'
policy because he is a family
member.
,A parking valet at a hotel uses a C) subrogate against the parking valet
guest's car to do a personal errand
and damages the car in a collision. Explanation: Part-D coverage for Damage to Your
The guest has a personal auto policy Auto of the PAP contains a no benefit to bailee
(PAP). The insurance company will provision. This provision states that a carrier or
pay the claim and ____. other bailee for hire, such as a parking gar5age,
service station, or moving company will not
A) relieve the parking valet of legal directly or indirectly benefit from the PAP's
liability for the loss insurance. A bailee is an individual or entity that
B) subrogate against the named assumes possession of goods owned by another
insured for the purpose of transporting, servicing, or
C) subrogate against the parking storing them. When temporary custody is assumed,
valet the bailee becomes legally liable for the goods.
D) recover any additional loss from
the lienholder Reference: 8.7.2 in the License Exam Manual
Who of the following are required to A) All insurers that write the types of insurance that
be members of the Arizona Property are protected by the fund in Arizona
and Casualty Insurance Guaranty
Fund? Explanation: All insurers that write types of
insurance that are protected by the fund are
A) All insurers that write the types of required to be member insurers of the fund.
insurance that are protected by the Reference: State Supplement in the License Exam
fund in Arizona Manual.
B) Foreign property and casualty
insurers only Reference: 4.4.16.3 in the License Exam Manual
C) lien property and casualty
insurers only
D) All insurers that write insurance in
Arizona, including life and health
insurers
,Which one of the following dwellings C) Single-family home
would a HO-3 Homeowners Form
cover? Explanation: HO-3 Homeowners Form covers
owner-occupied single family dwellings.
A) Condominium Condominiums are covered by the HO-6. Office
B) Office building and apartment buildings would be covered by a
C) Single-family home commercial policy.
D) Apartment building
Reference: 7.4.1 in the License Exam Manual
Which on of the following would be A) Pain and suffering
classified as a general damage?
Explanation: Compensatory damages compensate
A) Pain and suffering an injured party for injuries sustained- nothing
B) Lost wages more. Their purpose is to make a person whole
C) Medical bills again in the position that existed before the loss or
D) Damaged property harm. Compensatory damages are further
categorized by: general damages (which
necessarily result from the act or omission, such as
emotional distress, inconvenience, and pain and
suffering) and special damages (losses measured in
exact sums of money including medical bills, travel
expenses for medical care, prescription costs
damaged property, and lost wages).
Reference: 5.3.6 in the License Exam Manual
, Which of the following statements D) Personal property in a basement or outside in
about flood insurance is NOT the yard is covered
correct?
Explanation: Personal property in a basement or
A) There are two types of flood outside in the yard is NOT covered under flood
insurance programs available: insurance.
emergency and regular
B) A flood includes an overflow of Reference: 9.4 in the License Exam Manual
inland or tidal waters
C) Sewer backup into a dwelling is
not considered flood and is not
covered
D) Personal property in a basement
or outside in the yard is covered
Which of the following coverages is C) Longshore and harbor workers' compensation
NOT included in a insurance
boatowners/watercraft package
policy? Explanation: Boatowners/watercraft package
policies were developed by individual insurance
A) Medical payments companies and they combine property, liability,
B) Liability and medical payments insurance on an open peril
C) Longshore and harbor workers' basis. Longshore and harbor workers'
compensation insurance compensation insurance is found in personal yacht
D) Property policies, which are used to insure larger vessels
than those covered under boatowners policies.
Reference: 9.8.1 in the License Exam Manual
