Guarantee ExamFX, Idaho Personal Lines Simulation Exam
Questions and Answers Updated Latest (Verified Answers)
1. In the last 72 hours, there were 3 instances of volcanic eruptions that
damaged a property covered by a dwelling policy. How many deductibles
will the insured have to pay before the policy covers the damages caused by
the eruptions?
1. Zero
2. One
3. Two
4. Three
ANS one
2. In a personal auto policy (PAP), a covered auto includes all of the
following EXCEPT
1. A trailer owned by the insured.
2. A farm implement being towed behind the insured's pickup.
3. A nonowned temporary substitute vehicle.
4. A van used in the delivery business.
ANS A van used in the delivery business.
,3. Which of the following would NOT be covered as a loss under Coverage
D of a homeowners policy?
1. An insured has an apartment in his home. The tenant's negligence started
a fire, and the apartment was not fit to live in for 4 months while repairs
were being completed.
2. After a fire in a building next to the insured's home, the insured could
not occupy his home, and had to stay at a motel for one week.
3. An insured's home is damaged by fire. The insured incurs expenses
for living in a motel and having meals in a restaurant while repairs are
made.
4. An insured leased a dwelling for 5 years. Two years later, the property
owner died, and the new property owners wanted to make the property their
principal residence, so the lease was canceled.
ANS An insured leased a dwelling for 5 years. Two years later, the
property owner died, and the new property owners wanted to make the
property their principal residence, so the lease was
canceled.
4. An insurance policy form that lists specific covered perils provides
1. Special peril coverage.
2. Blanket coverage.
3. Named peril coverage.
4. Open peril coverage.
, ANS Named peril coverage.
5. An insured is injured while driving his own car. Which of the
following coverages will pay for the loss?
1. Part A-Liability
2. Part B - Medical Payments
, 3. Part C - Uninsured Motorist
4. Part D-Damage to Your Auto
ANS Part B - Medical Payments
6. An insured believes that his insurer is not properly fulfilling its
obligations regarding his policy. What section of the policy will give the
insured more information about specific duties of the insurer?
1. Obligations
2. Conditions
3. Endorsements
4. Definitions
ANS Conditions
7. *A trucking company has a $1 million umbrella policy in place. The
busines- sowner agrees to maintain a 200/500/100 limit on auto liability, and
a personal liability of $400,000. After a car accident, the business is sued.
Injuries are awarded to a single injured party in the amount of $300,000. It
turned out that the business actually carried only 100/250/50 auto liability
limits. What is the total amount the umbrella policy will pay?
1. $100,000
2. $50,000
3. $200,000
4. $300,000
Questions and Answers Updated Latest (Verified Answers)
1. In the last 72 hours, there were 3 instances of volcanic eruptions that
damaged a property covered by a dwelling policy. How many deductibles
will the insured have to pay before the policy covers the damages caused by
the eruptions?
1. Zero
2. One
3. Two
4. Three
ANS one
2. In a personal auto policy (PAP), a covered auto includes all of the
following EXCEPT
1. A trailer owned by the insured.
2. A farm implement being towed behind the insured's pickup.
3. A nonowned temporary substitute vehicle.
4. A van used in the delivery business.
ANS A van used in the delivery business.
,3. Which of the following would NOT be covered as a loss under Coverage
D of a homeowners policy?
1. An insured has an apartment in his home. The tenant's negligence started
a fire, and the apartment was not fit to live in for 4 months while repairs
were being completed.
2. After a fire in a building next to the insured's home, the insured could
not occupy his home, and had to stay at a motel for one week.
3. An insured's home is damaged by fire. The insured incurs expenses
for living in a motel and having meals in a restaurant while repairs are
made.
4. An insured leased a dwelling for 5 years. Two years later, the property
owner died, and the new property owners wanted to make the property their
principal residence, so the lease was canceled.
ANS An insured leased a dwelling for 5 years. Two years later, the
property owner died, and the new property owners wanted to make the
property their principal residence, so the lease was
canceled.
4. An insurance policy form that lists specific covered perils provides
1. Special peril coverage.
2. Blanket coverage.
3. Named peril coverage.
4. Open peril coverage.
, ANS Named peril coverage.
5. An insured is injured while driving his own car. Which of the
following coverages will pay for the loss?
1. Part A-Liability
2. Part B - Medical Payments
, 3. Part C - Uninsured Motorist
4. Part D-Damage to Your Auto
ANS Part B - Medical Payments
6. An insured believes that his insurer is not properly fulfilling its
obligations regarding his policy. What section of the policy will give the
insured more information about specific duties of the insurer?
1. Obligations
2. Conditions
3. Endorsements
4. Definitions
ANS Conditions
7. *A trucking company has a $1 million umbrella policy in place. The
busines- sowner agrees to maintain a 200/500/100 limit on auto liability, and
a personal liability of $400,000. After a car accident, the business is sued.
Injuries are awarded to a single injured party in the amount of $300,000. It
turned out that the business actually carried only 100/250/50 auto liability
limits. What is the total amount the umbrella policy will pay?
1. $100,000
2. $50,000
3. $200,000
4. $300,000
