NEW HAMPSHIRE TEST - 2ND SET
QUESTIONS & ANSWERS(RATED
A+)
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. - 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. - 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 - 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. - 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 - 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 - 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. - 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. - 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. - 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. - 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 - 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. - 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. - 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 - ANSWER1,000
In which of the following situations would trees, shrubs, and other plants be covered
by the Homeowners additional coverages?
The insured's fruit trees are destroyed when an ember from a nearby brush fire lands
on them and burns them.
The insured's shrubs are destroyed when a 100-year snow storm hits the area and
the weight of the snow is so heavy, it snaps the branches.
The insured's 150-year-old oak tree is pushed over by high winds.
The insured's fruit trees are ruined when snow and ice from a storm build up on the
trees, causing large sections to break off and fall to the ground. - ANSWERhe
insured's fruit trees are destroyed when an ember from a nearby brush fire lands on
them and burns them..
EXPLANATION:
The perils of wind, hail, and the weight of ice and snow are excluded under the
Homeowners additional coverage for trees, shrubs and other plants. Therefore, the
only situation that would be covered is: "The insured's fruit trees are destroyed when
an ember from a nearby brush fire lands on them and burns them".
QUESTIONS & ANSWERS(RATED
A+)
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. - 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. - 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 - 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. - 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 - 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 - 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. - 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. - 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. - 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. - 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 - 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. - 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. - 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 - ANSWER1,000
In which of the following situations would trees, shrubs, and other plants be covered
by the Homeowners additional coverages?
The insured's fruit trees are destroyed when an ember from a nearby brush fire lands
on them and burns them.
The insured's shrubs are destroyed when a 100-year snow storm hits the area and
the weight of the snow is so heavy, it snaps the branches.
The insured's 150-year-old oak tree is pushed over by high winds.
The insured's fruit trees are ruined when snow and ice from a storm build up on the
trees, causing large sections to break off and fall to the ground. - ANSWERhe
insured's fruit trees are destroyed when an ember from a nearby brush fire lands on
them and burns them..
EXPLANATION:
The perils of wind, hail, and the weight of ice and snow are excluded under the
Homeowners additional coverage for trees, shrubs and other plants. Therefore, the
only situation that would be covered is: "The insured's fruit trees are destroyed when
an ember from a nearby brush fire lands on them and burns them".
