Personal Lines Exam #1

all are true regarding an uninsured motorist selection/rejection form, EXCEPT

a. must be signed by a named insured

b. must be signed at the original policy inception

c. must be signed if named insured adds an auto to the policy

d. must be signed if named insured changes limits of liability

c

which of the following does NOT qualify under medical payments coverage in a personal auto policy?

a. 3 year old son living resident while occupying any vehicle

b. named insured while occupying a non-owned vehicle

c. a pedestrian who is struck by the named insured’s auto

d. members of soccer team occupying a covered auto

c

under an automobile policy with uninsured motorist coverage, a dispute on the amount of loss between the insurer and an insured can be settled by:

a. subrogation

b. judge & jury

c. arbitration

d. declaration

c

which of the following is TRUE regarding the Oklahoma Assigned Risk Auto Plan?

a. insured has more options than traditional insurance

b. the insured knows in advance the name of the insurer he/she will be assigned

c. applicants are not based on the financial ability to pay the premium

d. the applicant can be refused coverage based on a poor driving record

c

regarding uninsured motorist coverage on a personal auto policy (PAP) all of the following are true, EXCEPT?

a. uninsured motorist coverage must be rejected in writing

b. uninsured motorist minimum liability limit is 25/50

c. uninsured motorist coverage that has been rejected applies to all future renewals

d. uninsured motorist selection form must be signed if named insured changes addresses

d

karen borrows her mother’s car, which is insured by a personal auto policy (PAP). karen’s automobile is insured by a personal auto policy. karen has an accident while driving her mother’s car. if a liability claim is filed against karen and her mother:

a. karen’s policy will be treated as excess over her mother’s insurance

b. her mother’s policy will be treated as excess over karen’s insurance

c. the two policies will share the loss equally

d. the two policies will share the loss proportionally based on limits

a

which of the following is not true about uninsured motorist coverage in oklahoma?

a. bodily injury and property damage are covered

b. it is required on every auto liability policy unless rejected in writing

c. the coverage applies to hit-and-run drivers

d. it covers insured family members as pedestrians

a

a personal auto policy is written with the split limits coverage of $25,000 per person and $50,000 per accident for bodily injury and $25,0000 per accident for property damage. what is the maximum this policy will pay in claims if an accident results in many separate bodily injury and property damage claims?

a. $25,000

b. $50,000

c. $75,000

d. $100,000

c

all of the following are true about Homeowners Coverage A, EXCEPT?

a. wall-to wall carpet would be covered at replacement cost

b. built in fireplace would be covered at replacement cost

c. detached garage would be covered at replacement cost

d. coinsurance is 80%

c

which of the following would be eligible for coverage in a homeowners policy?

a. rental duplex

b. owner occupied farm house

c. dwelling converted into an art studio

d. owner occupied dwelling with 2 roomers

d

which of the following cannot be endorsed onto a homeowners policy?

a. personal property replacement cost coverage

b. scheduled personal property coverage

c. earthquake coverage

d. flood coverage

d

oily rags stored next to the gas hot water heater would be what type of hazard?

a. morale

b. moral

c. physical

d. scary

c

the fire department service charge would pay for which of the following?

a. remove a cat from a stranded tree

b. remove charred items

c. fight the fire in the dwelling

d. protect uninsured property

c

on a homeowners policy, personal property used for business purposes:

a. cannot be covered

b. is covered if an additional premium is paid

c. may be covered only while on the residence premises

d. is covered up to $2,500 on the premises and $250 off the premises

d

all of the following are true about Coverage C - Personal Property under the Homeowners Policy, EXCEPT?

a. certain types of property are subject to special limits

b. personal property is covered up to 50% of the limit of Coverage A

c. valuation is on an Actual Cash Value basis on all of the forms

d. coverage is worldwide

c

which of the following is a common exclusion on an Inland Marine policy?

a. vandalism

b. dropping

c. theft

d. inherent vice

d

all of the following vehicles would be ineligible for a personal auto policy, EXCEPT?

a. sedan titled to a corporation

b. pickup used in the freight business

c. antique auto

d. motorhome

c

the minimum limits of liability coverage in oklahoma are:

a. 10 / 20 / 10

b. 10 / 30 / 10

c. 25 / 50 / 10

d. 25 / 50 / 25

d

the auto policy territory is:

a. USA & Canada

b. USA, U.S. Territories, & Canada

c. worldwide

d. only the continental USA

b

in which of the following situations would an insured not be covered by personal auto medical payment?

a. insured injured while sitting in a parked car

b. insured hit by a bus while crossing the street

c. insured injured while riding a motorcycle

d. insured injured while changing a flat tire on his/her car

c

under the personal auto policy, which of the following is not collision coverage?

a. an insured hits a cow on a country road

b. an insured hits a picket fence

c. an insured upsets and rolls the vehicle after hitting an oklahoma city chug hole

d. another vehicle smashes into an auto driven by the insured

a

which of the following situations would be covered by liability insurance under a personal auto policy?

a. an insured causes injuries while operating a taxi cab

b. while road testing a customer’s car, an auto mechanic has an accident

c. an insured who lives in a rented house hits and damages the garage

d. an insured damages another vehicle while driving a non-owned vehicle

c

jim has personal auto coverage written with CSL limits of $300,000. what is the most that jim’s insurance company would pay in claims if jim causes an auto accident injuring several people?

a. $100,000

b. $200,000

c. $300,000

d. $400,00

all of the following vehicles would be ineligible for coverage under a personal auto policy, EXCEPT?

a. a 4 wheel van used in the insured’s heating & air conditioning business

b. a pickup used in the farming business

c. a motorhome used on personal vacation

d. a sedan used solely in the business of a sales representative

b

the maximum amount of uninsured motorist coverage an insured with auto liability limits of 50/100/25 can purchase is:

a. 100/300

b. 50/100/25

c. 50/100

d. 25/50

c

which of the following is NOT included in the coverage territory of a personal auto policy?

a. St. Thomas, US Territory

b. Canada

c. Mexico

d. Puerto Rico

c

all of the following would be considered “family members” of the named insured under the personal auto policy, EXCEPT?

a. the insured’s spouse who has taken up a separate residence

b. a 3-year-old adopted child living in the insured’s household

c. a teenage child of the insured’s spouse from a previous marriage who lives with the insured

d. insured 85 year old legally blind father living with the insured

a

which of the following would not be found in the declarations of a personal auto policy?

a. the named insured

b. description of the covered vehicles

c. policy period

d. policy territory

d

under the liability coverage of a personal auto policy, which of the following would be excluded from coverage?

a. a temporary substitute auto

b. a regularly furnished non-owned auto

c. an occasionally used non-owned auto

d. a replacement vehicle

b

for which of the automobile policy coverages under the personal auto policy (PAP) does a deductible apply?

a. physical damage

b. property damage liability

c. bodily injury liability

d. medical payments

a

under the personal auto policy which of the following is not “other than collision” coverage?

a. the insured swerves to miss a deer and hits a telephone pole

b. a rock falls on the insured vehicle

c. the insured vehicle is under water due to massive flooding

d. the insured vehicle is stolen

a

the standard value method for physical damage coverage on a personal auto policy is:

a. agreed value

b. replacement cost

c. actual cash value

d. negotiated value

c

which is not a required duty of an insured under a personal auto policy (PAP)?

a. notify the police if a vehicle is stolen

b. file suit against a negligent party

c. cooperate with the insurer in settlement and investigation of a claim

d. submit proof of loss

b

under a personal auto policy, the insurer has what time limit to request a refund for over payment of a claim?

a. 6 months

b. 12 months

c. 24 months

d. no time limit

c

in a situation where an insured hits a telephone pole and damages a covered auto, which personal auto policy coverage applies

a. this loss is not covered

b. collision

c. other than collision

d. transportation expense

b

regarding medical payments on a personal auto policy, all of the following statements are true, EXCEPT?

a. the limit of insurance applies per accident

b. it covers the named insured and family members

c. necessary medical expenses and funeral services are covered

d. passengers in an insured’s covered auto are covered

a

in the situation where a personal laptop computer is stolen from the back seat of an insured’s locked vehicle, which personal auto policy coverage applies?

a. this loss is not covered

b. collision

c. other than collision

d. transportation expense

a

medical payments on a personal auto policy have a time limit for payment of services rendered. the time limit is:

a. 3 years from the accident date

b. 2 years from the accident date

c. 1 year from the accident date

d. 90 days from the accident date

a

ethel entrepreneur is personally buying a sedan to use exclusively for business. what policy should ethel use?

a. business auto

b. personal auto

c. business owners policy

d. 90 days from the accident date

a

in the situation where the insured’s water lines freeze and cause a crack in the engine block of the vehicle, which personal auto coverage applies?

a. this loss is not covered

b. collision

c. other than collision (comprehensive)

d. transportation expense

a

which of the following is not true about medical payments on a personal auto policy?

a. covers the named insured and others occupying the auto

b. pays medical expenses for son riding on motorcycle

c. pays for funeral expenses

d. pays for services rendered within 3 years

b

all of these are examples of a collision loss, EXCEPT?

a. striking another vehicle

b. colliding with a deer

c. overturning the vehicle without colliding with anything

d. backing into a telephone pole

b

which one of the following situations would be covered by liability insurance under a personal auto policy?

a. an auto mechanic has an accident while road testing a customer’s vehicle

b. an insured causes injuries while operating a taxi cab

c. an insured damages the garage door of a renter residence

d. an insured damages another vehicle while driving a motorcycle

c

if the paint on an insured’s vehicle is damaged by hail, which personal auto coverage applies?

a. this loss is not covered

b. collision

c. other than collision (comprehensive)

d. transportation expense

c

in oklahoma, personal auto uninsured motorist coverage would provide coverage for?

a. property damage

b. bodily injury

c. personal injury

d. medical payments

b

each of the following is true about vehicle’s eligibility under a personal auto policy coverage, EXCEPT?

a. vehicles with fewer than four wheels are not eligible

b. vehicles owned by an individual or married couple may be insured

c. vans used in a delivery business are eligible

d. private passenger autos used for business may be insured

c

as a condition of automobile coverage, the insured is required to do which of the following in the event of an accident?

a. notify the police department of the accident as soon as possible

b. inform the insurer of the accident as soon as possible

c. report the accident to the county clerk’s office

d. report the accident to the state insurance department

b

in the situation where an insured’s illegally parked car is damaged by a fallen tree, damages may be collected under which of the following coverages?

a. this is not a covered loss

b. other than collision

c. property damage liability

d. collision

b

which of the following is not an example of a personal auto collision loss?

a. an insured hits a horse on a country road

b. the insured smashes into a telephone pole

c. another vehicle crashes into the insured’s car

d. the insured’s auto is upset and overturned by a bump in the road

a

an insured has a personal auto policy with a combined single limit of $500,000 for bodily injury and property damage. after an accident, a court awards $300,000 bodily injury & $35,000 property damage to claimant No. 1 and $200,000 bodily injury and $5,000 property damage to claimant No. 2. In this situation, the insurance company’s limit for liability is:

a. $300,000

b. $350,000

c. $500,000

d. $540,000

c