John has an auto which is covered for collision losses subject to a $250 deductible. Kate’s auto also has collision coverage but her deductible is $500. Which of the following statements describes how a $2,000 collision loss will be paid if it occurs when John borrows Kate’s car because his car is in the shop […]
Date: September 19th, 2020
Tony has an unendorsed Personal Auto Policy which provides medical payments coverage. Under which of the following circumstances would the injured person be eligible for benefits under Tony’s policy? I. A friend in the car is injured while Tony is driving a covered auto. II. A passenger on a motorcycle driven by Tony is injured […]
Date: September 19th, 2020
Finished goods held for sale are inventory, but raw materials to be used in the production process are considered other assets. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which of the following statements about the medical payments coverage of the PAP is true? A) The amount of the benefit typically is $100,000. B) Covered expenses must be incurred within 30 days of the accident. C) Covered expenses include the cost of funeral services. D) The benefit limit applies on a per-accident basis rather […]
Date: September 19th, 2020
All of the following statements about Part D (coverage for damage to your auto) of the PAP are true EXCEPT A) Coverage may be purchased with or without collision insurance. B) Losses are paid regardless of fault. C) Coverage applies to a nonowned auto occasionally driven by an insured. D) No coverage is provided for […]
Date: September 19th, 2020
The realized rate of return, or holding period return, is equal to the holding period dollar gain divided by the price at the beginning of the period. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
All of the following are considered to be uninsured vehicles for purposes of the uninsured motorists coverage of the PAP EXCEPT A) a vehicle owned by an individual who is insured, but for less than the amount required by the state’s financial responsibility law. B) a hit-and-run vehicle, the ownership of which cannot be determined. […]
Date: September 19th, 2020
Which of the following is a covered person under the medical payments coverage of the PAP? A) a family member of the named insured if struck by an auto while crossing the street B) a pedestrian struck by the named insured’s auto C) the named insured while she is operating her car as a taxi […]
Date: September 19th, 2020
Which of the following statements about the uninsured motorists coverage of the PAP is true? A) The coverage usually applies only to property damage. B) The coverage applies only if the uninsured motorist is legally liable. C) Unless higher amounts are purchased, the maximum benefit is normally limited to $1,000. D) A covered person’s only […]
Date: September 19th, 2020
A high debt ratio can be favorable because higher leverage may result in a higher return on equity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
