APCI - Arizona Property and Casualty Insurance Exam

Question 1: A producer in Pinal County reviews four properties for possible dwelling policy coverage: a working cattle ranch house, a twelve-unit apartment building, a warehouse converted to offices, and a rented three-family house in Coolidge. Which of the following is eligible for a dwelling policy?

The working cattle ranch house

The twelve-unit apartment building

The converted warehouse offices

The rented three-family house

Question 2: An Arizona landlord compares three dwelling forms on a rental house in Buckeye. One covers a short list of perils, one covers a longer list, and one covers the dwelling against all causes of loss except those excluded. Which form provides the broadest dwelling coverage?

The basic form

The broad form

The special form

The tenants form

Question 3: An Arizona insured buys the narrowest dwelling form on a rental house in Eloy and is surprised to learn that a monsoon microburst toppling the carport would not be covered unless something is added. Which of the following must be added to cover that loss?

A vacancy permit

An automatic increase endorsement

A dwelling under construction endorsement

Extended coverage perils

Question 4: A dwelling policy on a rented house in Apache Junction shows two hundred forty thousand dollars on the first line of the declarations, and the producer explains that this line covers the house itself along with materials on site for its repair. Which coverage is that?

Coverage A

Coverage B

Coverage C

Coverage D

Question 5: An Arizona rental house is insured under a dwelling policy for two hundred thousand dollars, and a monsoon storm destroys the detached workshop behind it. No separate limit appears on the declarations for that structure. Which of the following describes the amount available?

Nothing without a scheduled limit

Five percent of the dwelling limit

Twenty percent of the dwelling limit

Ten percent of the dwelling limit

Question 6: An Arizona owner of a rented house in Marana wants coverage for the refrigerator, range and window coverings she supplies with the rental, since those items belong to her rather than to the tenant. Which dwelling policy coverage applies to that property?

Coverage A

Coverage B

Coverage C

Coverage E

Question 7: A covered fire makes an Arizona duplex in Casa Grande uninhabitable, and the owner loses the rent both tenants were paying while repairs are made. She does not live in either unit herself. Which dwelling policy coverage responds to that loss?

Fair rental value

Additional living expense

Other structures

Personal liability

Question 8: An Arizona family lives in the house they own and insure under a dwelling policy. A covered kitchen fire in their Buckeye home forces them into a rented apartment for three months while repairs proceed. Which coverage pays the increase in their living costs?

Fair rental value

Reasonable repairs

Property removed

Additional living expense

Question 9: A covered fire at an Arizona rental dwelling leaves a large quantity of charred framing and burned drywall that must be hauled away before rebuilding can start. Which of the following dwelling policy other coverages pays that hauling cost?

Reasonable repairs

Property removed

Debris removal

Collapse

Question 10: A wildfire approaches an Arizona dwelling near Payson, and the insured hurriedly moves furniture and appliances to a friend's garage several miles away. A week later the borrowed garage is burglarized. Which dwelling policy other coverage responds to that theft?

Property removed

Debris removal

Reasonable repairs

Fire department service charge

Question 11: A rural fire district sends two engines to a grass fire threatening an Arizona insured's rented dwelling near Wickenburg, and the district later bills the property owner for the run. Which of the following dwelling policy other coverages addresses that charge?

Debris removal

Fire department service charge

Reasonable repairs

Trees, shrubs and other plants

Question 12: A monsoon microburst tears shingles from an Arizona rental dwelling in Surprise, and the owner immediately pays a contractor to tarp the roof so the coming rain does not soak the interior. Which dwelling policy other coverage reimburses that outlay?

Reasonable repairs

Debris removal

Property removed

Collapse

Question 13: A vehicle driven by a delivery driver leaves the road and destroys two mature mesquite trees on an Arizona insured's rented dwelling lot in Queen Creek. The owner asks whether her dwelling policy responds to the trees. Which of the following is correct?

Trees are never covered

Trees are covered against all perils

Covered only if the dwelling is damaged

Trees are covered against named perils

Question 14: An Arizona rental dwelling in a Maricopa County wash is damaged when a summer storm sends water racing across the property and into the house. The owner files a claim on her dwelling policy. Which of the following best describes the outcome?

Paid under the basic form

Paid only under the special form

Excluded, so flood coverage is needed

Paid after a percentage deductible

Question 15: An Arizona owner insures a rental dwelling in Sierra Vista for well under eighty percent of its replacement cost, and a covered fire causes a partial loss to the roof. Which of the following describes how the dwelling form settles that claim?

Full replacement cost on partial losses

Full replacement cost less the deductible

Market value at the loss date

Actual cash value, the test failing

Question 16: An Arizona owner of a rented house in Buckeye wants coverage if a burglar takes the appliances and furnishings she supplies to her tenant. Her producer explains that the standard dwelling form does not include this. Which of the following must she add?

An automatic increase endorsement

A theft coverage endorsement

A personal liability supplement

A dwelling under construction endorsement

Question 17: An Arizona rental property owner in Prescott Valley worries that construction costs are climbing faster than her policy limit and wants the amount of insurance to rise on its own at each renewal. Which of the following endorsements addresses that concern?

Automatic increase in insurance

Ordinance or law

Property removed

Theft coverage

Question 18: An Arizona owner is having a rental house built on a vacant lot he owns near Maricopa and wants coverage on the partially finished structure while framing and finish work continue. Which of the following endorsements is designed for that situation?

Automatic increase in insurance

Theft coverage extension

Dwelling under construction

Personal liability supplement

Question 19: An Arizona dwelling policy on a rental house in Show Low carries the personal liability supplement. A tenant's visitor trips on a broken step and sues the owner for her injuries. Which coverage under that supplement responds to the suit?

Coverage L

Coverage M

Coverage C

Coverage D

Question 20: A neighbor's child is hurt on an Arizona insured's rental property and needs stitches. The owner wants the medical bill handled promptly without anyone having to prove the owner did anything wrong. Which coverage under the personal liability supplement applies?

Coverage A

Coverage L

Coverage M

Coverage B

APCI Arizona Property and Casualty Insurance Exam - Set 3 - Part 1

Question 2: An Arizona landlord compares three dwelling forms on a rental house in Buckeye. One covers a short list of perils, one covers a longer list, and one covers the dwelling against all causes of loss except those excluded. Which form provides the broadest dwelling coverage?

Question 3: An Arizona insured buys the narrowest dwelling form on a rental house in Eloy and is surprised to learn that a monsoon microburst toppling the carport would not be covered unless something is added. Which of the following must be added to cover that loss?

Question 4: A dwelling policy on a rented house in Apache Junction shows two hundred forty thousand dollars on the first line of the declarations, and the producer explains that this line covers the house itself along with materials on site for its repair. Which coverage is that?

Question 5: An Arizona rental house is insured under a dwelling policy for two hundred thousand dollars, and a monsoon storm destroys the detached workshop behind it. No separate limit appears on the declarations for that structure. Which of the following describes the amount available?

Question 6: An Arizona owner of a rented house in Marana wants coverage for the refrigerator, range and window coverings she supplies with the rental, since those items belong to her rather than to the tenant. Which dwelling policy coverage applies to that property?

Question 7: A covered fire makes an Arizona duplex in Casa Grande uninhabitable, and the owner loses the rent both tenants were paying while repairs are made. She does not live in either unit herself. Which dwelling policy coverage responds to that loss?

Question 8: An Arizona family lives in the house they own and insure under a dwelling policy. A covered kitchen fire in their Buckeye home forces them into a rented apartment for three months while repairs proceed. Which coverage pays the increase in their living costs?

Question 9: A covered fire at an Arizona rental dwelling leaves a large quantity of charred framing and burned drywall that must be hauled away before rebuilding can start. Which of the following dwelling policy other coverages pays that hauling cost?

Question 10: A wildfire approaches an Arizona dwelling near Payson, and the insured hurriedly moves furniture and appliances to a friend's garage several miles away. A week later the borrowed garage is burglarized. Which dwelling policy other coverage responds to that theft?

Question 11: A rural fire district sends two engines to a grass fire threatening an Arizona insured's rented dwelling near Wickenburg, and the district later bills the property owner for the run. Which of the following dwelling policy other coverages addresses that charge?

Question 12: A monsoon microburst tears shingles from an Arizona rental dwelling in Surprise, and the owner immediately pays a contractor to tarp the roof so the coming rain does not soak the interior. Which dwelling policy other coverage reimburses that outlay?

Question 13: A vehicle driven by a delivery driver leaves the road and destroys two mature mesquite trees on an Arizona insured's rented dwelling lot in Queen Creek. The owner asks whether her dwelling policy responds to the trees. Which of the following is correct?

Question 14: An Arizona rental dwelling in a Maricopa County wash is damaged when a summer storm sends water racing across the property and into the house. The owner files a claim on her dwelling policy. Which of the following best describes the outcome?

Question 15: An Arizona owner insures a rental dwelling in Sierra Vista for well under eighty percent of its replacement cost, and a covered fire causes a partial loss to the roof. Which of the following describes how the dwelling form settles that claim?

Question 16: An Arizona owner of a rented house in Buckeye wants coverage if a burglar takes the appliances and furnishings she supplies to her tenant. Her producer explains that the standard dwelling form does not include this. Which of the following must she add?

Question 17: An Arizona rental property owner in Prescott Valley worries that construction costs are climbing faster than her policy limit and wants the amount of insurance to rise on its own at each renewal. Which of the following endorsements addresses that concern?

Question 18: An Arizona owner is having a rental house built on a vacant lot he owns near Maricopa and wants coverage on the partially finished structure while framing and finish work continue. Which of the following endorsements is designed for that situation?

Question 19: An Arizona dwelling policy on a rental house in Show Low carries the personal liability supplement. A tenant's visitor trips on a broken step and sues the owner for her injuries. Which coverage under that supplement responds to the suit?

Question 20: A neighbor's child is hurt on an Arizona insured's rental property and needs stitches. The owner wants the medical bill handled promptly without anyone having to prove the owner did anything wrong. Which coverage under the personal liability supplement applies?

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