Which of the following statements concerning the collision damage waiver when renting an auto is true? I. It relieves the renter from legal liability to third parties arising out of operation of the rented car. II. It relieves the renter from legal liability for the vehicle if it is damaged or stolen. A) I only […]
Date: September 19th, 2020
Which of the following statements is (are) true with respect to the collision damage waiver on rented cars? I. It is inexpensive and is provided at no charge by most rental car companies. II. It waives the renter’s liability for bodily injury liability arising out of use of the rented auto. A) I only B) […]
Date: September 19th, 2020
The recent financial crises was exacerbated by A) managers who underestimated the real risks of their decisions and borrowed excessively. B) extremely high interest rates in the United States that stifled investment. C) a lack of financial leverage that made U.S. firms less competitive in world markets. D) managers who overestimated risk and hence did […]
Date: September 19th, 2020
The purpose of the Miscellaneous-Type Vehicle Endorsement to the PAP is to A) add coverage for newly-acquired autos. B) provide coverage for when the insured is using someone else’s auto with the permission of the owner. C) insure motorcycles, mopeds, motor scooters, and similar vehicles. D) provide coverage for when the insured is using someone […]
Date: September 19th, 2020
Duties of an insured after a collision loss covered under the PAP include which of the following? I. Take reasonable steps to protect the vehicle from further damage. II. Admit fault if the insured believes he or she caused the collision. A) I only B) II only C) both I and II D) neither I […]
Date: September 19th, 2020
The present value of $1,000 to be received in 5 years is ________ if the discount rate is 12.78%. A) $368 B) $687 C) $494 D) $548 ANSWER D
Date: September 19th, 2020
All of the following statements about the termination provisions of the PAP are true EXCEPT A) The insured can cancel the policy for any reason. B) The insurer can cancel a newly-written policy if it has been in force for fewer than 60 days. C) The insurer can cancel the policy after it has been […]
Date: September 19th, 2020
Sarah purchased a Personal Auto Policy with liability limits of 50/100/25. Sarah ran a stop sign and hit a van. The van sustained $15,000 in damages. The following bodily injuries were suffered by passengers in the van: Passenger #1, $15,000; Passenger #2, $60,000; and Passenger #3, $10,000. Sarah sustained $5,000 in medical expenses, and Sarah’s […]
Date: September 19th, 2020
U.S. Savings Bonds are sold at a discount. The face value of the bond represents its value on its future maturity date. Therefore, A) the current price of a $50 face value bond that matures in 10 years will be greater than the current price of a $50 face value bond that matures in 5 […]
Date: September 19th, 2020
The insurance company’s options for settling a collision loss to a covered auto under the PAP include which of the following? I. Pay the loss in money. II. Repair or replace the damaged auto. A) I only B) II only C) both I and II D) neither I nor II ANSWER Answer: C
Date: September 19th, 2020
