Part 1Multiple Choice.One point per question, indicate the best answer. 1.Which statement is true regarding an UNENDORSED
Question:
Part 1Multiple Choice.One point per question, indicate the best answer.
1.Which statement is true regarding an UNENDORSED ISO Homeowners 3 (HO-3) policy?
a.Personal property is covered on a replacement cost basis.
b.The named insured can collect medical payments under this policy.
c.Losses to the dwelling are usually settled on an actual cash value basis.
d.Personal property is covered on an all-risk (direct physical damage not excluded) basis.
e.The dwelling is covered on an all-risk (direct physical damage not excluded) basis.
2.Damages awarded to compensate for things that can be itemized (e.g. a hospital bill or lost wages) are called:
a.punitive damages c.general damages e.special damages
b.structured damages d.liquidated damages
3.George purchased an unendorsed ISO Personal Auto Policy (PAP) that included Coverage D -Damage to the Covered Auto.George caused an accident and his auto was damaged.Under the PAP, what is the insurer's liability for the damage to George's car, assuming no deductible?
a.the greater of the actual cash value (ACV) of the damaged auto or the amount necessary to repair or
replace the vehicle
b.80% of the replacement cost of the vehicle or the ACV, whichever is greater
c.the insurer has no liability as George caused the accident
d.the lesser of the ACV of the damaged auto or the amount necessary to repair or replace the vehicle
e.80% of the replacement cost of the vehicle or the ACV, whichever is less
4.PEMCO Insurance Company is based in Seattle.PEMCO applied for permission to sell insurance in Oregon.Oregon's insurance regulators approved the application.When PEMCO operates in Oregon, it is considered in Oregon to be a(n):
a.domestic insurer.c.surplus lines insurer.e.foreign insurer.
b.nonadmitted insurer.d.alien insurer.
5.Bob, a Pullman resident, purchased an ISO Personal Auto Policy (PAP).Betty, Bob's friend who lives in Pullman, also purchased an ISO PAP from a different insurer. The liability limits under each of the policies is 100/300/50. Bob borrowed Betty's car with her permission.While driving Betty's car, Bob hit a man who was riding a bicycle in Pullman.The injuries of the bike rider were $15,000.How will this claim be settled?
a.Neither insurer will pay because non-owner vehicle liability is excluded.
b.Betty's insurer will pay $15,000.
c.Bob's insurer will pay $5,000, Betty's insurer will pay $5,000, and Bob must pay $5,000.
d.Betty's insurer will pay $7,500 and Bob's insurer will pay $7,500.
e.Bob's insurer will pay $15,000.
6.One tort reform idea would modify a special legal rule.Under this rule, more than one party may be responsible for an injury, but one of these defendants may be singled-out and required to pay a disproportionate share of the damages.For example, a party that was 50 percent responsible for the loss might be ordered to pay 80 percent of the damages.This rule is called the:
a.collateral sources rule.c.contributory negligence rule. e.dual capacity rule.
b.assumption of the risk rule. d.joint-and-several liability rule.
7.In certain cases, each of the following can be used as a successful defense against a claim of negligence EXCEPT:
a.res ipsa loquiturc.comparative negligencee.all of these (a,b,c, and d) may be used
b.assumption of the riskd.contributory negligenceas a successful negligence defense
Governmental and Nonprofit Accounting Theory and Practice
ISBN: 978-0133799569
11th edition
Authors: Robert J. Freeman, Craig D. Shoulders, Dwayne N. McSwain, Robert B. Scott