New Hampshire Test – 2nd Set | 2025/2026
Updated Study Guide & Practice Questions |
100% Pass Guarantee
What does the term "comparative negligence" refer to?
The percentage of fault is shared by each driver in an accident in which both contribute
to causing the accident.
The one who is most negligent receives no payment when the claim is settled.
The one who is the least negligent receives no payment when the claim is settled.
If both parties have contributed to causing the accident, neither party receives any
payment when the claim is settled. - correct answerThe percentage of fault is shared by
each driver in an accident in which both contribute to causing the accident.
The Business Income from Dependent Properties -- Broad Form is a variation of the
Business Income form as it:
Provides coverage for other locations of the insured's business that are dependent on
the main location to operate.
Provides coverage for loss of income to the insured business when direct physical
damage has occurred at another business upon which the insured business depends in
some way.
Provides coverage for loss of income to the insured business when poor business
practices causes bankruptcy at another business upon which the insured business
depends.
Provides coverage for loss of income to the insured business when a civil authority
prevents the insured from conducting business activities after a direct physical loss at a
dependent location. - correct answerProvides coverage for loss of income to the insured
business when direct physical damage has occurred at another business upon which
the insured business depends in some way.
How is personal property of a dwelling covered under a farm policy?
Actual Cash Value Basis
Stated Amount Basis
Agreed Amount Basis
Replacement Cost Basis - correct answerActual cash value basis
,Part D of the Personal Auto policy provides coverage for all of the following, EXCEPT:
All direct losses to the insured's covered auto.
Coverage for the types of damage that are not excluded.
Direct and accidental losses to a non-owned automobile being used by the insured.
Auto glass breakage caused by a collision. - correct answerPart D does not cover all
direct losses to the insured's covered auto, it covers only those direct losses that are
also accidental.
The CGL policy excludes coverage for damage done to the property of others if at the
time of the loss that property was in the care, custody and control of the insured.
However, the exclusion does not apply if the damage is caused by:
Water
Pollution
Earthquake
Fire, smoke or explosion - correct answerDamage done to the property of others, that
was in the care, custody and control of the insured, caused by fire, smoke or explosion
would be covered by the CGL. The other three choices are all specifically excluded from
coverage.
Barry's insured watercraft is disabled while on the lake one Sunday afternoon. His motor
completely stopped and will not start again. Barry calls George, a mechanic who rides
out to the section of the lake where Barry and his boat are stranded. George brings a
new starter for the engine and spends the next hour replacing it. When George is
finished installing the new starter, the engine still sputters and will not start. Barry then
calls a towing service to tow the boat back to the dock and into storage where George
can take a closer look. Barry's Watercraft policy has a $250 deductible. The cost of the
starter was $80 and the towing bill was $100. How much will Barry's standard
Watercraft policy pay under the "Towing and Assistance Expense" coverage, assuming
this is the only occurrence Barry has claimed during the current policy period?
$100 because this coverage only applies to the towing bill.
$180 because the - correct answerThe correct answer is: $180 because the deductible
does not apply to the coverage..
The policy will pay $180 under the "Towing and Assistance Expense" coverage
because the deductible does not apply to the coverage and pays up to $500.
Which of the following is not true regarding laws concerning insurance fraud in New
Hampshire?
False, incomplete or misleading information must be in written form to be considered
insurance fraud.
Is considered to be a felony.
,A class A felony exists where the value of the fraudulent claim exceeds $1,500 and a
class B felony where such claim is more than $1,000, but less than $1,500.
Insurance fraud if the person assists, abets, solicits or conspires with another to commit
insurance fraud. - correct answerFalse, incomplete or misleading information must be in
written form to be considered insurance fraud.
A "full release settlement" when properly prepared, should include:
The name of the attorney of record.
The name of the insurance company.
The names of the releasee and releasor.
The name of the adjuster resolving the claim. - correct answerThe names of the
releasee and releasor..
All of the following statements are TRUE regarding automobile "no-fault" laws,
EXCEPT:
Medical expense and lost wage claims are paid by the insured's own automobile policy,
without assigning fault to any party in the accident.
Medical payments and physical damage claims are paid by the state without assigning
fault to any party in the accident.
No-fault laws have been passed by states to alleviate the backlog of lawsuits brought to
assign fault for the accident.
No-fault laws expedite claims payments, reducing the amount of time insured's must
wait for reimbursement. - correct answerThe untrue statement in the answer choices is:
"Medical payments and physical damage claims are paid by the state without assigning
fault to any party in the accident." All of the other answer choices are true statements
regarding automobile "no-fault" laws
The purpose of the New Hampshire Insurance Guaranty Association is:
To pay the covered claims of insolvent insurers.
To provide a market for those unable to purchase property insurance in standard
markets.
To provide excess property coverage in major cities.
To provide property and crime coverage's where the insured cannot obtain coverage in
the standard markets. - correct answerto pay the covered claims of insolvent insurers.
A personal watercraft policy would pay for which of the following losses?
I. A boat's motor is stolen on the 25th day after the insured acquired it, and before the
insured reported its acquisition to the insurance company.
II. A boat that sank in 40 feet of water is refloated at a cost of $700.
II only
I only
, Both I and II
Neither I nor II - correct answerA boat that sank in 40 feet of water is refloated at a cost
of $700.
This additional coverage pays for reasonable costs to remove or dispose of the insured
watercraft if it is wrecked or sunk. Generally, coverage applies if the loss is caused by
an insured peril. Additionally, the motor would have been covered for 14 days after the
acquisition even if the insured had not reported it to the insurer, but the question says
that the theft occurred on the 25th day after the motor was acquired and the insured had
still not reported the motor to the insurer. In that instance, the motor would not be
covered.
Which of the following is a covered basic form peril of the Homeowners policies?
Volcanic eruption.
Earthquake.
Subsidence.
Land shock waves. - correct answerVolcanic eruption..
EXPLANATION:
Volcanic eruption is a covered basic form peril of Homeowners policies. Earthquake,
subsidence, and land shock waves are not covered.
All of the following exposures are covered under the commercial general liability policy,
EXCEPT:
Injury to an employee of the insured.
Liability assumed under a lease of premises.
Damages caused by products after their sale.
Damages to others by slander. - correct answerInjuries to employees are only covered
by workers compensation insurance.
Depreciation of a total loss to a vehicle as a result of normal wear and tear and rust is
limited to:
$1,500
$2,000
$1,000
$3,000 - correct answer1,000
In which of the following situations would trees, shrubs, and other plants be covered by
the Homeowners additional coverages?
Updated Study Guide & Practice Questions |
100% Pass Guarantee
What does the term "comparative negligence" refer to?
The percentage of fault is shared by each driver in an accident in which both contribute
to causing the accident.
The one who is most negligent receives no payment when the claim is settled.
The one who is the least negligent receives no payment when the claim is settled.
If both parties have contributed to causing the accident, neither party receives any
payment when the claim is settled. - correct answerThe percentage of fault is shared by
each driver in an accident in which both contribute to causing the accident.
The Business Income from Dependent Properties -- Broad Form is a variation of the
Business Income form as it:
Provides coverage for other locations of the insured's business that are dependent on
the main location to operate.
Provides coverage for loss of income to the insured business when direct physical
damage has occurred at another business upon which the insured business depends in
some way.
Provides coverage for loss of income to the insured business when poor business
practices causes bankruptcy at another business upon which the insured business
depends.
Provides coverage for loss of income to the insured business when a civil authority
prevents the insured from conducting business activities after a direct physical loss at a
dependent location. - correct answerProvides coverage for loss of income to the insured
business when direct physical damage has occurred at another business upon which
the insured business depends in some way.
How is personal property of a dwelling covered under a farm policy?
Actual Cash Value Basis
Stated Amount Basis
Agreed Amount Basis
Replacement Cost Basis - correct answerActual cash value basis
,Part D of the Personal Auto policy provides coverage for all of the following, EXCEPT:
All direct losses to the insured's covered auto.
Coverage for the types of damage that are not excluded.
Direct and accidental losses to a non-owned automobile being used by the insured.
Auto glass breakage caused by a collision. - correct answerPart D does not cover all
direct losses to the insured's covered auto, it covers only those direct losses that are
also accidental.
The CGL policy excludes coverage for damage done to the property of others if at the
time of the loss that property was in the care, custody and control of the insured.
However, the exclusion does not apply if the damage is caused by:
Water
Pollution
Earthquake
Fire, smoke or explosion - correct answerDamage done to the property of others, that
was in the care, custody and control of the insured, caused by fire, smoke or explosion
would be covered by the CGL. The other three choices are all specifically excluded from
coverage.
Barry's insured watercraft is disabled while on the lake one Sunday afternoon. His motor
completely stopped and will not start again. Barry calls George, a mechanic who rides
out to the section of the lake where Barry and his boat are stranded. George brings a
new starter for the engine and spends the next hour replacing it. When George is
finished installing the new starter, the engine still sputters and will not start. Barry then
calls a towing service to tow the boat back to the dock and into storage where George
can take a closer look. Barry's Watercraft policy has a $250 deductible. The cost of the
starter was $80 and the towing bill was $100. How much will Barry's standard
Watercraft policy pay under the "Towing and Assistance Expense" coverage, assuming
this is the only occurrence Barry has claimed during the current policy period?
$100 because this coverage only applies to the towing bill.
$180 because the - correct answerThe correct answer is: $180 because the deductible
does not apply to the coverage..
The policy will pay $180 under the "Towing and Assistance Expense" coverage
because the deductible does not apply to the coverage and pays up to $500.
Which of the following is not true regarding laws concerning insurance fraud in New
Hampshire?
False, incomplete or misleading information must be in written form to be considered
insurance fraud.
Is considered to be a felony.
,A class A felony exists where the value of the fraudulent claim exceeds $1,500 and a
class B felony where such claim is more than $1,000, but less than $1,500.
Insurance fraud if the person assists, abets, solicits or conspires with another to commit
insurance fraud. - correct answerFalse, incomplete or misleading information must be in
written form to be considered insurance fraud.
A "full release settlement" when properly prepared, should include:
The name of the attorney of record.
The name of the insurance company.
The names of the releasee and releasor.
The name of the adjuster resolving the claim. - correct answerThe names of the
releasee and releasor..
All of the following statements are TRUE regarding automobile "no-fault" laws,
EXCEPT:
Medical expense and lost wage claims are paid by the insured's own automobile policy,
without assigning fault to any party in the accident.
Medical payments and physical damage claims are paid by the state without assigning
fault to any party in the accident.
No-fault laws have been passed by states to alleviate the backlog of lawsuits brought to
assign fault for the accident.
No-fault laws expedite claims payments, reducing the amount of time insured's must
wait for reimbursement. - correct answerThe untrue statement in the answer choices is:
"Medical payments and physical damage claims are paid by the state without assigning
fault to any party in the accident." All of the other answer choices are true statements
regarding automobile "no-fault" laws
The purpose of the New Hampshire Insurance Guaranty Association is:
To pay the covered claims of insolvent insurers.
To provide a market for those unable to purchase property insurance in standard
markets.
To provide excess property coverage in major cities.
To provide property and crime coverage's where the insured cannot obtain coverage in
the standard markets. - correct answerto pay the covered claims of insolvent insurers.
A personal watercraft policy would pay for which of the following losses?
I. A boat's motor is stolen on the 25th day after the insured acquired it, and before the
insured reported its acquisition to the insurance company.
II. A boat that sank in 40 feet of water is refloated at a cost of $700.
II only
I only
, Both I and II
Neither I nor II - correct answerA boat that sank in 40 feet of water is refloated at a cost
of $700.
This additional coverage pays for reasonable costs to remove or dispose of the insured
watercraft if it is wrecked or sunk. Generally, coverage applies if the loss is caused by
an insured peril. Additionally, the motor would have been covered for 14 days after the
acquisition even if the insured had not reported it to the insurer, but the question says
that the theft occurred on the 25th day after the motor was acquired and the insured had
still not reported the motor to the insurer. In that instance, the motor would not be
covered.
Which of the following is a covered basic form peril of the Homeowners policies?
Volcanic eruption.
Earthquake.
Subsidence.
Land shock waves. - correct answerVolcanic eruption..
EXPLANATION:
Volcanic eruption is a covered basic form peril of Homeowners policies. Earthquake,
subsidence, and land shock waves are not covered.
All of the following exposures are covered under the commercial general liability policy,
EXCEPT:
Injury to an employee of the insured.
Liability assumed under a lease of premises.
Damages caused by products after their sale.
Damages to others by slander. - correct answerInjuries to employees are only covered
by workers compensation insurance.
Depreciation of a total loss to a vehicle as a result of normal wear and tear and rust is
limited to:
$1,500
$2,000
$1,000
$3,000 - correct answer1,000
In which of the following situations would trees, shrubs, and other plants be covered by
the Homeowners additional coverages?
