Real property (realty) correct answers Tangible property consisting of land, all structures permanently attached to the land, and whatever is growing on the land.
Personal Property correct answers possessions such as jewelry, furniture, and boats
Damage to building by vandalism - Put a fence ...
AINS 102 || with A+ Guaranteed Solutions.
Real property (realty) correct answers Tangible property consisting of land, all structures
permanently attached to the land, and whatever is growing on the land.
Personal Property correct answers possessions such as jewelry, furniture, and boats
Damage to building by vandalism - Put a fence around the building correct answers Loss
Prevention
Home burglary - Install burglar alarm correct answers Loss reduction
Tort Damages correct answers compensatory damages and punitive damages
Negligence Tort correct answers careless neglect, often resulting in injury
Example: Driving while intoxicated and causing an accident
Intentional Tort correct answers A deliberate act that causes harm to another person
Example: assault
Strict Liability correct answers Inherently dangerous activities or dangerously defective products
that result in injury or harm
Example: Owning a wild animal
At-Fault States or Tort State correct answers a driver who causes a car crash is responsible for
compensating the other party or parties for their losses
No-Fault States correct answers the driver's personal injury protection (PIP) coverage pays out
after a car accident for lost wages and medical expenses, regardless of fault
Modified no-fault plans correct answers These allow injured motorists to collect economic losses
from their plan's PIP benefits. They may then have the ability to sue at-fault drivers for any
economic losses that exceed the no-fault coverage limits and for some noneconomic losses.
Add-on plans correct answers These add no-fault benefits to auto insurance policies but place no
restrictions on the injured person's right to sue a negligent party for damages.
Choice no-fault plans correct answers Under these plans, insureds can choose whether to be
covered on a modified no-fault basis. In most states with these plans, insureds who choose not to
be covered on a modified no-fault basis must purchase add-on coverages.
Who or what regulates auto insurance rates?
,Federal regulators
State regulators
President of the United States
Private insurers' auditors correct answers State regulators - States regulate auto insurance rates.
While states' rating laws can vary, they generally require insurers to use rates that are adequate to
pay all claims and expenses, reasonable (not excessive) for the exposure presented, and not
unfairly discriminatory.
Open perils coverage correct answers a form of commercial property insurance that provides
protection against nearly every type of loss except those specifically excluded in the policy.
Open perils property insurance is different from named perils insurance, which only provides
coverage for losses specifically listed in the policy.
Named perils coverage correct answers insures against causes of loss that are specifically listed
in the policy.
HO-2 Broad Form correct answers Provides named perils coverage for dwellings and personal
property and liability coverage.
HO-3 Special Form correct answers Provides open perils coverage for dwellings, named perils
coverage for personal property, and liability coverage.
HO-4 Contents Broad Form correct answers Often called renters insurance, it's designed for
tenants and other occupants of dwellings or apartments. It provides no dwelling coverage, but it
covers personal property on a named perils basis and provides liability coverage.
HO-5 Comprehensive Form correct answers Provides the broadest coverage of all HO forms. It
covers dwellings and personal property on an open perils basis, and it provides liability coverage.
HO-6 Unit-Owners Form correct answers Designed for owners of residential condominium units
and provides limited dwelling coverage. Named perils personal property coverage is provided, as
is liability coverage.
HO-8 Modified Coverage Form correct answers Designed for older buildings with a high
replacement cost compared to market value. Dwellings and personal property coverage is
provided on a more limited named perils basis. Liability coverage is also provided.
Endorsements correct answers Many endorsements are available to modify HO policies to
further enable them to meet the specific needs of individuals and families. Endorsements can
increase or decrease limits, add or remove coverages, change definitions, clarify policy intent, or
recognize specific characteristics that require a premium increase or decrease.
Which one of the following statements regarding assets exposed to loss is true?
A. Real property includes only tangible property.
B. Earthquake damage to a swimming pool is an example of a personal property loss exposure.
C. Personal property includes only tangible property.
, D. Hail damage to a motor vehicle is an example of a real property loss exposure. correct
answers A. Real property includes only tangible property.
All of the following could lead to a liability loss for a family, EXCEPT:
A. The son, who is 13 years old, throws a rock at a classmate who requires stitches for an injury
to his head.
B. A guest slips on an icy sidewalk in front of the family's home and breaks his leg.
C. The daughter, who is 16 years old, sideswipes a neighbor's car and dents its fender while
driving her own car.
D. The father trips on a broom he left lying in the driveway and breaks his arm. correct answers
D. The father trips on a broom he left lying in the driveway and breaks his arm.
Leslie is insured with a personal auto policy (PIP) with Baines Insurance. She lives in a state that
has a type of no-fault plan in which she, if injured by an auto accident that was the fault of
another person, would be compensated with no-fault benefits but she would not be restricted in
her right to sue that negligent person for damages. This type of no-fault plan is most specifically
a(n)
A. Add-on plan
B. Choice no-fault
C. Modified no-fault plan
D. PIP benefit correct answers A. Add-on plan
Your Covered Auto correct answers - any vehicle shown in the declarations
- a newly acquired auto
- a trailer owned by the named insured
- a temporary substitute vehicle
Compensatory Damages correct answers A monetary award equivalent to the actual value of
injuries or damage sustained by the aggrieved party.
Excess Electronic Equipment Coverage correct answers This endorsement provides coverage for
electronic equipment that is permanently installed in the vehicle in a location not used by the
auto manufacturer. Coverage increases the policy limit from $1,000 to the amount shown on the
endorsement. It includes $200 of coverage for tapes, records, discs, and other media used with
covered excess electronic equipment.
Named non-owner coverage correct answers Provides coverage for the use of non-owned autos
to individuals who do not own a car.
Auto Loan/Lease Coverage correct answers amends physical damage coverage for leased
vehicles or vehicles with outstanding loan amounts to include an unpaid amount due on the lease
or loan
Towing and labor costs endorsement correct answers Covers towing and the costs of labor
performed at the site the car was disabled.
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