SAMPLE EXAM 3 2010
SAMPLE EXAM 3 2010
1. Which of the following statements about the payment of defense costs by the PAP is (are) true?
I. They are paid in addition to the policy limits.
II. They are payable even after the limit of liability is exhausted.
A) I only B) II only C) both I and II D) neither I nor II
Answer: A
2. Defects of financial responsibility laws include which of the following?
I. Accident victims may not be fully compensated for their injuries.
II. They apply only to property damage losses, not to bodily injury claims.
A) I only B) II only C) both I and II D) Neither I nor II
Answer: A
3. Reggie just purchased a home. A friend told him to be sure to consider coverage for natural disasters. All of the following natural disasters are covered under an unendorsed Homeowners 3 policy EXCEPT
A) tornadoes. B) hurricanes. C) floods. D) forest fires.
Answer: C
4. Jan was injured in a work-related auto accident. She sued the other driver, and the case went to court. While questioning Jan, the defendant’s lawyer asked if her injuries and lost earnings were covered under workers compensation. Jan’s lawyer objected to the question. The judge ruled that the question was improper and instructed the jury to disregard the question. Based on the judge’s reaction to the question, we can conclude that which of the following rules is in force where this trial took place?
A) the comparative negligence rule B) the last clear chance rule
C) the joint and several liability rule D) the collateral source rule
Answer: D
5. Which of the following statements about the medical payments coverage of the PAP is true?
A) Covered expenses include the cost of funeral services.
B) The benefit limit applies on a per-accident basis rather than a per-person basis.
C) Covered expenses must be incurred within six months of the accident.
D) The amount of the benefit typically is $100,000.
Answer: A
6. All of the
1. Which of the following statements about the payment of defense costs by the PAP is (are) true?
I. They are paid in addition to the policy limits.
II. They are payable even after the limit of liability is exhausted.
A) I only B) II only C) both I and II D) neither I nor II
Answer: A
2. Defects of financial responsibility laws include which of the following?
I. Accident victims may not be fully compensated for their injuries.
II. They apply only to property damage losses, not to bodily injury claims.
A) I only B) II only C) both I and II D) Neither I nor II
Answer: A
3. Reggie just purchased a home. A friend told him to be sure to consider coverage for natural disasters. All of the following natural disasters are covered under an unendorsed Homeowners 3 policy EXCEPT
A) tornadoes. B) hurricanes. C) floods. D) forest fires.
Answer: C
4. Jan was injured in a work-related auto accident. She sued the other driver, and the case went to court. While questioning Jan, the defendant’s lawyer asked if her injuries and lost earnings were covered under workers compensation. Jan’s lawyer objected to the question. The judge ruled that the question was improper and instructed the jury to disregard the question. Based on the judge’s reaction to the question, we can conclude that which of the following rules is in force where this trial took place?
A) the comparative negligence rule B) the last clear chance rule
C) the joint and several liability rule D) the collateral source rule
Answer: D
5. Which of the following statements about the medical payments coverage of the PAP is true?
A) Covered expenses include the cost of funeral services.
B) The benefit limit applies on a per-accident basis rather than a per-person basis.
C) Covered expenses must be incurred within six months of the accident.
D) The amount of the benefit typically is $100,000.
Answer: A
6. All of the