Personal and Commercial Auto Insurance Exam - California
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1. The "binding period" in a Personal Auto policy is:
A. The period the policy is effective B. The period the insurer is obligated to pay for loss C. The time frame in which the insurer determines the risk of the prospective insured D. The period the insure is obligated to defend the insured in a suit
ABCD
2. The following is true about a Business Owners policy, except:
A. It provides property damage B. It provides liability risks on business premises C. It provides coverage for any equipment on an automobile D. It provides coverage off the business premises
3. Find a wrong statement about Workers' Compensation insurance
A. Workers' Compensation is available only through a state-run fund B. Workers' Compensation provides coverage for job-related injuries C. Workers' Compensation must provide the basic level of benefits as mandated by the state D. Workers' Compensation protects both the employees and the employers
4. Specified Causes of Loss provides coverage for the following, except:
A. Fire, lightning or explosion B. Windstorm, hail or earthquake C. Overturn of the covered auto D. Theft
5. Item Seven of Truckers Declaration provides schedule for Gross receipts rating basis - Liability coverage. Find the wrong statement:
A. This part provides information on estimated yearly Gross receipts B. Premiums for liability coverage C. Rates per $500 of Gross receipts for liability coverage D. Premiums for auto medical payments
6. Liability coverage of Truckers Coverage Form is:
A. Excess for a covered auto while hired by the insured B. Excess for any covered auto while borrowed by the insured C. Primary for any covered auto while hired or borrowed by the insured and used exclusively in the named insured business as a "trucker" D. Primary for any covered auto while hired or borrowed by the insured
7. The named insured has a Garage Coverage Form. Find the situation when the vehicle will not be covered:
A. Symbol 30 is entered. The mechanic damaged the customer's vehicle. B. Symbol 30 is entered. A mechanic damaged his co-worker's vehicle while repairing it for payment. C. Symbol 30 is entered. A mechanic damaged his own vehicle while repairing it in the shop. D. In all the situations, coverage will not be provided.
8. The following is true if the insured has a Personal Auto policy and has a car loan, except:
A. The insured should notify the lien holder B. The insured should pay off the balance of the loan if the vehicle is declared a total loss C. If the vehicle is declared a total loss, the insurer will issue a check to the insured, and the insured must settle payments with the lien holder D. If the vehicle is declared a total loss, the insurer will most likely issue a check to the lien holder
9. Uninsured Motorists Coverage:
A. Is required by all states B. Provides coverage for damage to the car in all states C. Pays for the injuries if the insured is struck by a hit-and-run driver or someone who does not have auto insurance D. Covers pain-and-suffering damages only
10. The named insured has a Garage Coverage Form (comprehensive coverage). Which of the following situations will be covered?
A. A customer asks to drive one of the new cars on sale and never returns. B. A customer asks a salesman to let him drive on of the new cars on sale; during the drive he threatens the salesperson with a gun, pushed him out of the car, and drives off. C. A named insured purchases a car from a customer and later learns the car had been stolen. D. A customer brings a vehicle for repairs and gets a loaner. The customer never returns the borrowed vehicle and the customer's car is proved to be a stolen car.
11. Under the principle of subrogation:
A. The insurer pays the physical damage claim while the insured has a legal right to sue the faulty party B. The insurer and the insured are entitled to demand an appraisal C. The insurer pays the physical damage claim and is entitled to sue the faulty party to get the money paid to the insured D. Both A and B are true
12. All 50 states have different requirements for auto insurance, find the wrong statement:
A. All states require at least the state's minimum of liability coverage B. Some states do not mandate auto insurance C. Some states use an "honor system" that does not require proof of insurance until drivers have accidents or tickets on their records D. Some states have financial responsibility laws that require all drivers to pay for any damage or injury they may cause
13. Comprehensive Coverage pays for the following, except:
A. Fire B. Theft C. Collision D. Vandalism
14. Gross Combination Weight (GCW) is:
A. The maximum weight for which a single auto is designed B. The maximum loaded weight for which a single auto is designed C. The maximum loaded weight for a combination of a truck-tractor and semi-trailer or trailer for which the truck-tractor is designed D. The maximum weight of a truck-tractor without a trailer or a semi-trailer
15. Mobile equipment in the Business Auto policy includes the following, except:
A. Vehicles designed