INSURING PERSONAL AUTO EXPOSURES CISR ACTUAL
EXAM 100 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |AGRADE
Howard borrows his neighbor's car because his car is in the body shop after his
oldest son had an accident on a trip home from college. Under Howard's automobile
policy, his neighbor's car is considered a (n):
A)
temporary substitute automobile.
B)
uninsured automobile.
C)
nonowned automobile.
D)
owned automobile. - ANSWER: a
The covered auto is defined in the policy as all of the following EXCEPT:
A)
any additional auto acquired in the past 30 days.
B)
any auto used as a temporary substitute while an insured auto is being repaired.
C)
any auto shown in the declarations.
D)
any trailer owned by the insured or spouse. - ANSWER: a
Towing and labor coverage covers all the following EXCEPT:
A)
towing costs after a breakdown.
B)
towing costs after an accident.
C)
cost of a fan belt replaced at the scene of a breakdown.
D)
labor for changing a tire at the scene of a breakdown. - ANSWER: c
An auto policy would provide coverage for an auto driven in all of the following
places EXCEPT:
A)
Mexico City, Mexico.
B)
Honolulu, Hawaii.
C)
Alberta, Canada.
D)
,Paducah, Kentucky. - ANSWER: a
The personal auto policy coverage applies to losses, accidents, or occurrences that
take place during the policy period in all the following locations EXCEPT:
A)
Alberta, Canada.
B)
Dover, Delaware.
C)
Phillipsburg, St. Martin.
D)
San Juan, Puerto Rico. - ANSWER: c
Steve meets with his agent to apply for an automobile insurance policy on his 2
personal cars. In reviewing the policy, Steve finds he is not willing to accept the
duties listed in the conditions section. He signs the application but adds a note
deleting the duties to the insurer. Is this acceptable to the company?
A)
No, the agent has to make this request in writing.
B)
Yes, as long as the request is done in writing.
C)
No, a written endorsement by the insurer is the only way to change the policy.
D)
Yes, the insured has the ability to change the policy at the time of the application. -
ANSWER: c
Which one of the following would be considered a temporary substitute vehicle
under the terms of the personal auto policy?
A)
Loaner vehicle provided by an auto repair shop.
B)
New car purchased by the insured 3 days ago.
C)
Truck borrowed from a friend while moving.
D)
Company car provided by an employer. - ANSWER: a
All of the following vehicles can be insured under an unendorsed personal auto
policy EXCEPT:
A)
trailers hitched to the insured vehicle.
B)
motorcycles.
C)
newly acquired vehicles.
D)
, rental cars. - ANSWER: b
If a dispute arises over whether an insured is entitled to uninsured motorists
coverage, what process is used to settle the dispute?
A)
Appraisal.
B)
Arbitration.
C)
Negotiation.
D)
Subrogation. - ANSWER: b
A major purpose of automobile insurance is to ensure that victims of automobile
accidents are compensated for damage and injuries from those who cause accidents
as a result of negligence. Which of the following is NOT an approach used to
compensate accident victims?
A)
Unsatisfied judgment funds.
B)
Fair Credit Reporting Act.
C)
Financial responsibility.
D)
No-fault. - ANSWER: b
In automobile insurance, the term supplementary payments refers to payments:
A)
made by the insurance company for the insured's own medical expenses to
supplement any other medical insurance.
B)
received by the insured directly from the person or persons who caused the loss.
C)
covering reasonable expenses incurred at the insurer's request and other specified
expenses that are not subject to the policy limit.
D)
made by the insured for damages exceeding the policy limits. - ANSWER: c
Jane's sister, Maggie, who lives with Jane and just sold her car, drives Jane's sports
car to a party. On the way home Maggie loses control of the car, hits a parked car,
and rolls the car over. Maggie is severely injured and taken to the hospital. What
coverage will reimburse Maggie for her medical bills?
A)
Uninsured motorist coverage.
B)
Liability coverage.
C)
EXAM 100 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |AGRADE
Howard borrows his neighbor's car because his car is in the body shop after his
oldest son had an accident on a trip home from college. Under Howard's automobile
policy, his neighbor's car is considered a (n):
A)
temporary substitute automobile.
B)
uninsured automobile.
C)
nonowned automobile.
D)
owned automobile. - ANSWER: a
The covered auto is defined in the policy as all of the following EXCEPT:
A)
any additional auto acquired in the past 30 days.
B)
any auto used as a temporary substitute while an insured auto is being repaired.
C)
any auto shown in the declarations.
D)
any trailer owned by the insured or spouse. - ANSWER: a
Towing and labor coverage covers all the following EXCEPT:
A)
towing costs after a breakdown.
B)
towing costs after an accident.
C)
cost of a fan belt replaced at the scene of a breakdown.
D)
labor for changing a tire at the scene of a breakdown. - ANSWER: c
An auto policy would provide coverage for an auto driven in all of the following
places EXCEPT:
A)
Mexico City, Mexico.
B)
Honolulu, Hawaii.
C)
Alberta, Canada.
D)
,Paducah, Kentucky. - ANSWER: a
The personal auto policy coverage applies to losses, accidents, or occurrences that
take place during the policy period in all the following locations EXCEPT:
A)
Alberta, Canada.
B)
Dover, Delaware.
C)
Phillipsburg, St. Martin.
D)
San Juan, Puerto Rico. - ANSWER: c
Steve meets with his agent to apply for an automobile insurance policy on his 2
personal cars. In reviewing the policy, Steve finds he is not willing to accept the
duties listed in the conditions section. He signs the application but adds a note
deleting the duties to the insurer. Is this acceptable to the company?
A)
No, the agent has to make this request in writing.
B)
Yes, as long as the request is done in writing.
C)
No, a written endorsement by the insurer is the only way to change the policy.
D)
Yes, the insured has the ability to change the policy at the time of the application. -
ANSWER: c
Which one of the following would be considered a temporary substitute vehicle
under the terms of the personal auto policy?
A)
Loaner vehicle provided by an auto repair shop.
B)
New car purchased by the insured 3 days ago.
C)
Truck borrowed from a friend while moving.
D)
Company car provided by an employer. - ANSWER: a
All of the following vehicles can be insured under an unendorsed personal auto
policy EXCEPT:
A)
trailers hitched to the insured vehicle.
B)
motorcycles.
C)
newly acquired vehicles.
D)
, rental cars. - ANSWER: b
If a dispute arises over whether an insured is entitled to uninsured motorists
coverage, what process is used to settle the dispute?
A)
Appraisal.
B)
Arbitration.
C)
Negotiation.
D)
Subrogation. - ANSWER: b
A major purpose of automobile insurance is to ensure that victims of automobile
accidents are compensated for damage and injuries from those who cause accidents
as a result of negligence. Which of the following is NOT an approach used to
compensate accident victims?
A)
Unsatisfied judgment funds.
B)
Fair Credit Reporting Act.
C)
Financial responsibility.
D)
No-fault. - ANSWER: b
In automobile insurance, the term supplementary payments refers to payments:
A)
made by the insurance company for the insured's own medical expenses to
supplement any other medical insurance.
B)
received by the insured directly from the person or persons who caused the loss.
C)
covering reasonable expenses incurred at the insurer's request and other specified
expenses that are not subject to the policy limit.
D)
made by the insured for damages exceeding the policy limits. - ANSWER: c
Jane's sister, Maggie, who lives with Jane and just sold her car, drives Jane's sports
car to a party. On the way home Maggie loses control of the car, hits a parked car,
and rolls the car over. Maggie is severely injured and taken to the hospital. What
coverage will reimburse Maggie for her medical bills?
A)
Uninsured motorist coverage.
B)
Liability coverage.
C)
