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CREST CPSA Questions and Answers (100% Pass)
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CREST CPSA Questions and Answers (100% Pass)
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1|Page | © copyright 2024/2025 | Grade A+CPCU 553 Questions and Answers
(100% Pass)
One disadvantage of the tort liability system for compensation of auto
accident victims is that
Select one:
A. It does not provide a remedy for victims of irresponsible drivers who cause
accidents.
B. There are substantial time delays in reaching a settlement either through
negotiation or through the courts.
C. It does not allow punitive damage awards to be included as part of the
compensation.
D. The minimal amount of protection is generally not enough to meet the full
needs of accident victims.
✓ B. There are substantial time delays in reaching a settlement either
through negotiation or through the courts.
Compulsory insurance laws are considered to be superior to financial
responsibility laws because
Select one:
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
A. There are minimal delays in compensating the victim of an automobile
accident through effective use of compulsory auto insurance.
B. Compulsory insurance laws do not require that the victims of an
automobile insurance accident prove fault to receive compensation.
C. States enforce compulsory insurance laws more effectively than financial
responsibility laws.
D. Motorists must provide proof of financial responsibility before an accident
occurs, rather than afterward.
✓ D. Motorists must provide proof of financial responsibility before an
accident occurs, rather than afterward.
Which one of the following statements is true regarding no-fault automobile
insurance?
Select one:
A. Under a no-fault system, an injured person does not need to establish fault,
but must prove negligence in order to collect payment for damages.
B. Most no-fault laws apply only to bodily injury and not to property damage.
C. No-fault laws typically provide no benefits for loss of earnings for an injured
person.
D. An injured party must sue to obtain medical expenses above a particular
monetary threshold in all no-fault plans.
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
✓ B. Most no-fault laws apply only to bodily injury and not to property
damage.
Marcia has sustained serious injuries in an automobile accident with another
driver. If the no-fault automobile insurance law in Marcia's state permits her to
sue the other driver for economic damages only if her economic damages
exceed her no-fault coverage limit, what type of no-fault law applies in
Marcia's state?
Select one:
A. Modified no-fault
B. Pure no-fault
C. Add-on no-fault
D. Personal injury protection
✓ A. Modified no-fault
In a state with a reinsurance facility for high-risk drivers, a private insurer that
does not want to bear the risk of a high-risk applicant may
Select one:
A. Assign the application to the reinsurance facility to be underwritten and
serviced.
Master01 | October, 2024/2025 | Latest update
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