Auto insurance Practice test questions with answers

Auto insurance Practice test questions
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with answers |\




What type of coverage is provided by an inland marine
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policy? - CORRECT ANSWERS ✔✔Open or all risk coverage
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- Inland marine policies have only a few limited
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exclusions.


Any person who transacts insurance without a valid
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license is: - CORRECT ANSWERS ✔✔Guilty of a
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misdemeanor, Subject to a fine not exceeding $50,000 |\ |\ |\ |\ |\ |\ |\ |\



and/or improsonment, Subject to imprisonment in county
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jail for a period not exceeding one year.
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For homes subject to the state & defensible space req,
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the total amount of defensible space req around the
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home is - CORRECT ANSWERS ✔✔100 ft
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Notifying the police is a req under which of the following
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circumstances, as it applies to a personal auto policy? - |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



CORRECT ANSWERS ✔✔For hit and run accidents and |\ |\ |\ |\ |\ |\ |\ |\



thefts.

,Under a yacht policy, protection and indemnity provides
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coverage for: - CORRECT ANSWERS ✔✔Liability if the
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insured vessel strikes a marina and injures a dock worker.
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Which of the following is a principal rating factor for a
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personal automonile policy? - CORRECT ANSWERS ✔✔The
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number of miles the drives each year. This is the second
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principal rating factor that must be used according to the
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Code.


The cost to rebuild or replace a home increases for all of
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the following reasons after a catastrophe such as
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tornadoes or wildfire, except: - CORRECT ANSWERS
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✔✔Insurance policy issues - Insurance does not increase |\ |\ |\ |\ |\ |\ |\ |\



the cost to rebuild after a catastrophe; it just might not be
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enough to cover all of the increased costs.
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Withholding, rather than misstating, a material fact on an |\ |\ |\ |\ |\ |\ |\ |\ |\



insurance application is an act of which of the following? -
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CORRECT ANSWERS ✔✔Concealment
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How you would compute the combined ratio is to: -
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CORRECT ANSWERS ✔✔Add the loss and expense ratios
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,Absolute liability is imposed on a risk: - CORRECT
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ANSWERS ✔✔When there is negligence whether proven |\ |\ |\ |\ |\ |\ |\



or not
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The measure of loss potential which is used for pricing of
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insurance is known as: - CORRECT ANSWERS ✔✔An |\ |\ |\ |\ |\ |\ |\ |\



exposure unit |\




Which part of the policy is said to personalize it? -
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CORRECT ANSWERS ✔✔Declarations |\ |\




According to California Insurance Law, who is legally|\ |\ |\ |\ |\ |\ |\ |\



allowed to cancel an insurance policy? - CORRECT
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ANSWERS ✔✔Either the insured or insurer |\ |\ |\ |\ |\




When a premium is based solely on an underwriter
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evaluation of an individual applicants loss potential this is
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known as: - CORRECT ANSWERS ✔✔judgement rating.
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What is is about a liability policy that causes the need for
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inland marine coverage? - CORRECT ANSWERS ✔✔The
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exclusion for care, custody, and control |\ |\ |\ |\ |\




Which of the following coverages must be offered to all
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insureds that purchase residential property insurance
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, policies in CA? - CORRECT ANSWERS ✔✔Earthquake
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coverage


The Ca FAIR plan makes it possible for people that are
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unable to obtain insurance in the voluntary market to
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qualify for coverage through this program. Which type of
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insurance is obtained through the Fair Plan? - CORRECT |\ |\ |\ |\ |\ |\ |\ |\ |\



ANSWERS ✔✔Real and personal property at a fixed |\ |\ |\ |\ |\ |\ |\ |\



location in areas designated |\ |\ |\




In order for a rate to remain in effect it must be: -
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CORRECT ANSWERS ✔✔Reasonable, not excessive: |\ |\ |\ |\ |\



Adequate, not inadeqaute: Equitable, not unfairly |\ |\ |\ |\ |\ |\



discriminatory


Which of the following events may be covered by
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insurance? - CORRECT ANSWERS ✔✔Owning a home - |\ |\ |\ |\ |\ |\ |\ |\



This is a pure risk and only pure risk can be insured
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A type of auto insurance that car owners can buy to
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protect themselves againts lossess that can arise when
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the amont of compensation received from a total loss
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does not fully cover the amount the insured owes on the
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vehicle financing or lease agreement would be: -
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CORRECT ANSWERS ✔✔Gap insurance |\ |\ |\