Arizona Insurance FREE Sample Exam — Fixed Set

A forklift the claimant rented out is struck by the insured’s truck and is out of service for repairs for ten days. The rental owner’s claim for those ten days is best characterized as what?

Bodily injury to the rental company

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Damage to electronic data

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Loss of use resulting from physical injury to tangible property

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Loss of use of property that was not physically injured

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A claimant is 99 percent at fault for a collision causing $200,000 in damages in a pure comparative negligence jurisdiction. How much can the claimant recover from the defendant who was 1 percent at fault?

$0

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$198,000

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$2,000

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$100,000

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What narrow exception allows policy rights to pass without the usual prior written consent?

Transfer to a creditor whenever a loan is made

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Transfer to a named insured's legal representative upon the named insured's death, until a replacement is appointed or the period ends

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Transfer to any buyer of the insured's furniture

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Transfer to an employee who uses the insured property of the insured during the policy period, and an employee who regularly uses insured property may take over the policy by assignment

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An insured negligently strikes a parked car owned by a stranger and also crushes a suitcase the insured had borrowed and was carrying in the trunk. The stranger’s car is paid under Part A. How is the borrowed suitcase treated?

It is paid on the same basis as the stranger's car

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It is paid only under Part D as damage to the insured auto

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It is excluded under Part A as property in the insured's care being transported by the insured

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It is paid if the suitcase owner gives written permission after the loss

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A policy has a $25,000 aggregate deductible for the period. Covered claims so far have absorbed $18,000 of it. A new covered claim of $40,000 arises. How much deductible remains to be applied to the new claim?

$7,000

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$25,000

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$18,000

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$0

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Two identical condominium units sit in different buildings. In one building the association documents make owners responsible for interior fixtures; in the other the association insures them. What most determines each owner’s Coverage A need?

The unit's resale price alone

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The association documents and master policy, which allocate which building items each owner must insure

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The number of parking spaces assigned to the unit, for purposes of the coverage determination presented in the situation described

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The owner's automobile insurance deductible

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An insurer finds that predictions for a class become steadier as it goes from insuring a handful of similar delivery vans to insuring many thousands of them. This experience most directly supports which element?

A large number of similar exposure units

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A catastrophic concentration of exposures

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An intentional loss by each insured

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An unaffordable premium for each van

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An apartment building with a value of $540,000 is subject to 90% coinsurance and is insured for $324,000. A fire causes a covered partial loss of $54,000; the deductible is $1,000. Determine the amount payable.

$53,000

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$35,000

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$36,000

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$35,333

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What is an endorsement in policy structure terms?

A verbal assurance from an agent that supplements the contract

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A written change to the policy that becomes part of the contract it modifies

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A separate policy that replaces the original in all respects

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A notice from a third party claiming an interest in the policy

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An insured demands a refund of all premiums after a claim-free policy period, arguing the exchange was one-sided. How does the aleatory nature of insurance answer the demand?

The insured is entitled to a full refund plus interest

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The insurer must convert the premiums into a savings account for the insured, crediting every premium dollar to an account the insured may withdraw after any claim-free period ends

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The exchange was the premium for the insurer's promise and protection during the period, so a claim-free period does not make the contract fail

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The policy was void because no loss occurred

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A landlord is endorsed as an additional insured on a tenant’s property policy for the landlord’s interest in the building. The tenant’s own stock is destroyed by a covered peril. Can the landlord claim payment for the tenant’s stock as an additional insured?

No, because additional insureds can never present any claim of their own

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Yes, if the landlord's name appears before the tenant's on the endorsement

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No, the landlord's additional insured interest is the building, not the tenant's stock

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Yes, additional insureds share in every property loss under the policy

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What is the statutory fee range for an examination on the laws and one kind of insurance?

$15 to $45

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$60 to $180

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$0.50 to $0.75

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$8 to $25

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Arizona Insurance FREE Sample Exam — Fixed Set

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