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LIC AAO examination is scheduled in the upcoming months, so we are here with the Insurance MCQs post with reference to the Banking & Insurance Industry. It will give you the cutting edge in the examination. Make most of it.
1. Which of the following is NOT contained in the Declarations page of the Personal Auto Policy (PAP)?
1) Policy period.
2) Insuring agreement.
3) Policy number.
4) Name of the insurer.
5) Limits of insurance for each coverage provided.
2. Liability coverage- Part A is the most common part of the Personal Auto Policy (PAP). Which of the following is NOT covered under the liability section of the PAP?
1) A newly acquired auto that replaces a vehicle previously described in the policy.
2) A trailer owned by the named insured.
3) A borrowed auto used by the insured as a temporary substitute during servicing of the insured’s primary vehicle.
4) A nonowned van that the insured drives to the grocery store each week.
5) A pickup truck owned by the named insured and shown in the policy’s Declarations.
3. Which of the following is NOT considered to be an uninsured motor vehicle by the Uninsured Motorists Coverage- Part C of the Personal Auto Policy (PAP)?
1) A vehicle for which no bodily injury liability insurance or bond applies at the time of the accident.
2) A hit-and-run vehicle whose operator cannot be identified.
3) An uninsured vehicle furnished for regular use by a family member.
4) A vehicle insured with an insurer that denies coverage due to the insurer’s insolvency.
5) A vehicle insured for less than the minimum liability limit required by the state’s financial responsibility law.
4. Which of the following is NOT a duty of an insured after an auto accident covered under the Personal Auto Policy (PAP)?
1) Submit proof of loss.
2) Submit to a physical examination if requested.
3) Agree to an examination under oath.
4) Admit negligence to the police if at fault.
5) Provide prompt notice to the insurer.
5. Which of the following is NOT a common endorsement added to the Personal Auto Policy (PAP)?
1) Snowmobile endorsement.
2) Limited Mexico coverage endorsement.
3) Auto loan/lease (Guaranteed Auto Protection- GAP) coverage.
4) Towing and labor cost coverage.
5) Garage Business endorsement.
6. Which of the following is true regarding tenants of rented apartment units?
1) Tenants have no need for Homeowners insurance.
2) Tenants must insure both the apartment building and their personal property.
3) Tenants are eligible for Homeowners insurance using HO-3 (the Special Form).
4) Tenants are eligible for Homeowners insurance using HO-4 (the Contents Broad Form).
5) Tenants are eligible for Homeowners insurance using HO-8 (the Modified Coverage Form).
7. One of the Conditions in Homeowners HO-3 (the Special Form) lists the insured’s duties after a property loss. Which of the following statements concerning this condition is true?
1) The insured’s claim representative might not require that all of these duties be performed.
2) The insurer is prevented from denying a claim even if the insured fails to perform required duties.
3) All listed duties always must be performed prior to final claim settlement.
4) Claim representatives usually waive most or all duties expected of the insured.
5) As long as the insured gives prompt notice of the loss, the insurer cannot require other duties to be performed.
8. Spencer has a Homeowners HO-3 policy that provides $320,000 of insurance on his dwelling, which has a current replacement value of $500,000. Ignoring any deductible, how much will Spencer collect if his kitchen with a replacement value of $30,000 but an actual cash value of $26,000 is destroyed in a fire?
9. Which of the following is NOT an exclusion in Section II of the Homeowners HO-3 policy?
1) Intentional injuries.
2) Business activities.
3) Transmission of a communicable disease.
4) The gradual yet accidental seepage of pollutants from the insured’s septic system into the neighborhood water supply.
5) Injuries caused by operation of a motor vehicle registered for use on public roads.
10. Which of the following statements regarding the- severability of insurance- condition in the HO-3 Special Form insurance policy is true?
I. The condition applies insurance separately to each insured.
II. The condition does not increase the insurer’s limit of liability for any one occurrence.
III. The condition allows the policy to cover a claim brought by one insured against another insured.
1) I only.
2) I and II only.
3) I and III only.
4) II and III only.
5) I, II, and III.