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What type of liability is covered under the personal injury endorsement to a homeowners policy?

Liability for slander, libel, false arrest, or invasion of privacy, not bodily injury or property damage

Who is covered under Coverage F (Medical Payments to Others)?

Anyone hurt on your property or by your pet, like a guest or neighbor’s child.

What handles high-risk drivers through a shared pool funded by all insurers?

Joint Underwriting Association (JUA)

When can an insurer deny coverage if the insured fails to follow duties after a loss?

Only if the failure prejudices the insurer

Express authority

Powers specifically conferred on an agent to act on behalf of a principal are

Which of the following types of water damage is covered under an unendorsed Homeowners 3 policy?

Damage from water that overflows from a malfunctioning washing machine (because it was accidental)

Persons insured for personal liability under the homeowners policy include which of the following?

Only the named insured, resident relatives, and full-time residents under 21 in their care are covered

collateral source rule

means compensation from other sources, like workers compensation, cannot reduce the damages the defendant owes

Which of the following statements about reinsurance facilities for insuring high-risk drivers is (are) true?

In a reinsurance facility, every insurer must accept all drivers, but high-risk ones can be placed in the pool. Losses are shared among all insurers in the state

Contracts of Adhesion

The insurance company writes the rules. You either accept or reject them. No negotiation.

Aleatory Contracts

You pay a small amount now for the chance to get a large payout later. Uneven exchange.

Unilateral Contracts

Only the insurance company makes a promise to pay if you have a covered loss.

Conditional Contracts

The company pays only if you follow the policy rules, like reporting claims on time.

Coverage A of the HO-3 policy

The dwelling and structures attached to it

What does Coverage B of the HO-3 policy cover

Other structures not attached to the house, like a detached garage or shed.

What does Coverage C of the HO-3 policy cover?

Personal property owned or used by the insured, like furniture, clothes, and electronics

What does Coverage D of the HO-3 policy cover?

Loss of use, including extra living expenses if your home becomes unlivable after a covered loss.

What are the main coverages in a Personal Auto Policy (PAP)?

• Part A: Liability coverage

• Part B: Medical payments

• Part C: Uninsured/Underinsured motorists

• Part D: Coverage for damage to your auto (collision and other-than-collision)

What is Coverage E under the homeowners policy?

Personal Liability. Pays if you’re legally responsible for injury or property damage to others. Includes legal defense costs.

What is Coverage F under the homeowners policy?

Medical Payments to Others. Pays medical bills for people injured on your property or by your actions, regardless of fault.

Who is covered under the liability section of the Personal Auto Policy (PAP)?

• Named insured and family members for the use of any auto.

• Anyone using the insured’s car with permission.

• Other people or organizations legally responsible for the insured’s use of the car (such as an employer).

No pay, no play” laws

Laws that prohibit uninsured drivers from suing for noneconomic damages are called

In which of the following situations would medical payments be paid under an unendorsed PAP?

Injuries incurred in an auto while it is used in a share-the-expense car pool.

Following statements of liability limits of the PAP

both are true

Following statements about unstatified judgement funds are

An accident victim must obtain a judgment against the motorist who caused an accident and

must show the judgment cannot be collected. (1 only)

joit underwriting associations for insuring high risk dirvers are

1 only 

Underwriting losses are proportionately shared by all auto insurers based on premiums written

in the state.

Defects of finanical responsiblities law include

1 only 

Accident victims may not be fully compensated for their injuries.

insurer's obligation to provide a legal defense under the personal liability coverage (Coverage E) of the homeowners policy is (are) true?

II.	The insurer's obligation to defend the insured ceases after the amount paid for damages from

an occurrence equals the policy limit.

Factors that affect the cost of homeowners insurance include which of the following?

I.	Construction material

II.	Deductible amount

Arguments in favor of reforming the civil justice system include which of the following?

I.There is often a long delay in settling lawsuits.

Which of the following situations would be covered under Section II of a homeowners policy?

The insured's son is sued after a friend suffered serious injury as a result of using illegal drugs

sold to him by the son. || only

Special Damages

To compensate victims

Tony has an unendorsed Personal Auto Policy which provides medical payments coverage. Under which of the following circumstances would the injured person be eligible for benefits under Tony's policy?

I.	A friend in the car is injured while Tony is driving a covered auto.

II.	A passenger on a motorcycle driven by Tony is injured when Tony hit another vehicle.

I.	A friend in the car is injured while Tony is driving a covered auto.

Under the Personal Auto Policy, which of the following statements is true concerning transportation network platforms through which drivers are connected with passengers for pre-arranged transportation for a fee?

I. Liability arising out of operating a vehicle while using the vehicle for such pre-arranged travel for a fee is excluded.
II. Medical payments coverage does not apply if the injuries occur while using the vehicle for pre-arranged travel for a fee through a transportation network platform.

Which of the following statements about the appraisal clause in the Homeowners 3 policy is (are) true?

II.	It is used to help settle disputes over the amount of a loss after a loss has occurred.