APCI - Arizona Property and Casualty Insurance Exam

Question 1: An Arizona insured who already carries liability, comprehensive and collision on two vehicles trades one of them for a newer car at a Mesa dealership on a Saturday afternoon. Which of the following best describes how her personal auto policy treats the replacement vehicle?

Covered only after written notice

Not covered until the renewal date

Covered only for liability

Treated as a newly acquired auto

Question 2: A personal auto policy is issued to a married couple in Tucson. Their nineteen-year-old daughter lives at home while attending university, and a cousin visiting from another state stays with them for a week. Which of the following describes who qualifies as a family member?

Both the daughter and the visiting cousin

The visiting cousin only

The daughter only

Neither, since only the named insured qualifies

Question 3: An Arizona insured lends his covered auto to a coworker for an afternoon errand, and the coworker causes an accident in Glendale that injures another motorist. The coworker is not related to the insured and does not live with him. Which of the following applies?

No coverage, he being no relative

Coverage only under medical payments

Coverage only if the coworker is uninsured

Coverage, he having permission

Question 4: An Arizona insured is sued after an auto accident in Chandler. His insurer posts a bond to release an attachment, pays the premium on an appeal bond, and reimburses him for a day of lost earnings spent testifying. Which part of the policy funds those payments?

Medical payments coverage

Uninsured motorists coverage

Supplementary payments

Coverage for damage to your auto

Question 5: An Arizona insured begins carrying paying passengers in his personal vehicle through a ride-hailing application on weekends in Scottsdale, and he causes an accident while a passenger is in the car. Which of the following best describes his personal auto liability coverage?

Excluded, the auto carrying persons for hire

Covered, he owning the vehicle

Covered to the minimum limits only

Covered after a surcharge applies

Question 6: An Arizona insured and two passengers are hurt when their covered auto is struck at an intersection in Gilbert. The insured wants their emergency room bills paid quickly without waiting for anyone to establish who caused the crash. Which coverage responds?

Liability coverage

Uninsured motorists coverage

Coverage for damage to your auto

Medical payments coverage

Question 7: An Arizona driver is injured on Interstate Ten near Casa Grande by a motorist who leaves the scene and is never identified. The driver has no way to pursue the other party for her injuries. Which coverage under her personal auto policy responds?

Liability coverage

Medical payments coverage

Uninsured motorists coverage

Underinsured motorists coverage

Question 8: An Arizona insured is seriously injured near Flagstaff by a driver whose liability limits are exhausted well before her damages are met. She carries higher limits on her own policy. Which coverage is designed to make up that difference?

Underinsured motorists coverage

Uninsured motorists coverage

Medical payments coverage

Supplementary payments

Question 9: An Arizona insured misjudges a turn in a Peoria parking structure and scrapes her covered auto along a concrete pillar, causing substantial damage to the passenger side. Which coverage under Part D of her personal auto policy applies to that damage?

Comprehensive coverage

Towing and labor coverage

Uninsured motorists coverage

Collision coverage

Question 10: An Arizona insured's parked car is damaged twice in one month in Tempe. First a hailstone shatters the rear window during a monsoon storm, and later a javelina runs into the front fender. Which coverage under Part D applies to both losses?

Collision coverage

Uninsured motorists coverage

Other than collision coverage

Supplementary payments

Question 11: An Arizona applicant in Surprise wants to lower the premium on the physical damage coverage for her three-year-old sedan and asks her producer what she can change without giving up the coverage entirely. Which of the following will accomplish that?

Reducing her liability limits

Dropping medical payments coverage

Reducing her uninsured motorists limits

Selecting a higher deductible

Question 12: An Arizona insured is involved in a collision on a highway near Kingman and asks her producer what the policy requires of her before the insurer will consider the claim. Which of the following states the general provisions that apply after an accident?

Prompt notice, cooperation and proof of loss

Repair of the vehicle before any inspection

Filing suit against the other driver first

Written waiver of the deductible

Question 13: An Arizona insured's car will not start in a parking garage in downtown Phoenix, and she needs a tow to a repair shop along with roadside labor at the scene. Which personal auto endorsement is written to reimburse those costs?

Extended non-owned coverage

Towing and labor costs

Joint ownership coverage

Miscellaneous type vehicle

Question 14: An Arizona executive owns no car of her own and regularly drives vehicles that her employer furnishes and keeps available for her use. She wants her personal auto policy to protect her while she drives those vehicles. Which endorsement addresses that exposure?

Towing and labor costs

Rental vehicle coverage

Extended non-owned coverage

Joint ownership coverage

Question 15: An Arizona insured's covered auto is stolen from a shopping center lot in Mesa and is not recovered for two weeks. She must rent a car to get to work while the claim is investigated. Which coverage responds to that rental cost?

Supplementary payments

Medical payments coverage

Towing and labor costs

Transportation expenses

Question 16: An Arizona applicant in Yuma asks the least amount of automobile liability coverage she may purchase on a policy issued today in order to satisfy the state's motor vehicle financial responsibility requirement. Which of the following states those minimum limits?

Fifteen, thirty and ten thousand

Twenty, forty and fifteen thousand

Twenty-five, fifty and fifteen thousand

Fifty, one hundred and twenty-five thousand

Question 17: An Arizona claims adjuster reviews an automobile policy that was last renewed several months before the state raised its financial responsibility limits and has not been renewed since. Which of the following describes the minimum limits that policy must carry?

The prior fifteen, thirty and ten tier

The current twenty-five, fifty and fifteen tier

Whichever tier the insured selects

No minimum applies here

Question 18: An Arizona resident registers a newly purchased vehicle at a motor vehicle office in Bullhead City and asks her producer how long she has to submit proof that the vehicle carries Arizona insurance. Which of the following states that period?

Ten days

Thirty days

Sixty days

Ninety days

Question 19: An Arizona insurer offered uninsured and underinsured motorists coverage in writing on the required form when a policy was first written, and the insured declined it. The policy has now been renewed twice. Which of the following describes the insurer's continuing duty?

Repeat the offer at every renewal

Repeat the offer every third year

No repeat offer at renewal

The rejection expires after one renewal

Question 20: An Arizona insured carries bodily injury liability limits of one hundred thousand dollars for each person and asks her producer for uninsured motorists limits well above that figure. Which of the following describes what the insurer must make available?

Unlimited uninsured motorists limits

Limits up to the bodily injury limits

Twice the liability limits

Only the state minimum limits

APCI Arizona Property and Casualty Insurance Exam - Set 4 - Part 1

Question 1: An Arizona insured who already carries liability, comprehensive and collision on two vehicles trades one of them for a newer car at a Mesa dealership on a Saturday afternoon. Which of the following best describes how her personal auto policy treats the replacement vehicle?

Question 2: A personal auto policy is issued to a married couple in Tucson. Their nineteen-year-old daughter lives at home while attending university, and a cousin visiting from another state stays with them for a week. Which of the following describes who qualifies as a family member?

Question 3: An Arizona insured lends his covered auto to a coworker for an afternoon errand, and the coworker causes an accident in Glendale that injures another motorist. The coworker is not related to the insured and does not live with him. Which of the following applies?

Question 4: An Arizona insured is sued after an auto accident in Chandler. His insurer posts a bond to release an attachment, pays the premium on an appeal bond, and reimburses him for a day of lost earnings spent testifying. Which part of the policy funds those payments?

Question 5: An Arizona insured begins carrying paying passengers in his personal vehicle through a ride-hailing application on weekends in Scottsdale, and he causes an accident while a passenger is in the car. Which of the following best describes his personal auto liability coverage?

Question 6: An Arizona insured and two passengers are hurt when their covered auto is struck at an intersection in Gilbert. The insured wants their emergency room bills paid quickly without waiting for anyone to establish who caused the crash. Which coverage responds?

Question 7: An Arizona driver is injured on Interstate Ten near Casa Grande by a motorist who leaves the scene and is never identified. The driver has no way to pursue the other party for her injuries. Which coverage under her personal auto policy responds?

Question 8: An Arizona insured is seriously injured near Flagstaff by a driver whose liability limits are exhausted well before her damages are met. She carries higher limits on her own policy. Which coverage is designed to make up that difference?

Question 9: An Arizona insured misjudges a turn in a Peoria parking structure and scrapes her covered auto along a concrete pillar, causing substantial damage to the passenger side. Which coverage under Part D of her personal auto policy applies to that damage?

Question 10: An Arizona insured's parked car is damaged twice in one month in Tempe. First a hailstone shatters the rear window during a monsoon storm, and later a javelina runs into the front fender. Which coverage under Part D applies to both losses?

Question 11: An Arizona applicant in Surprise wants to lower the premium on the physical damage coverage for her three-year-old sedan and asks her producer what she can change without giving up the coverage entirely. Which of the following will accomplish that?

Question 12: An Arizona insured is involved in a collision on a highway near Kingman and asks her producer what the policy requires of her before the insurer will consider the claim. Which of the following states the general provisions that apply after an accident?

Question 13: An Arizona insured's car will not start in a parking garage in downtown Phoenix, and she needs a tow to a repair shop along with roadside labor at the scene. Which personal auto endorsement is written to reimburse those costs?

Question 14: An Arizona executive owns no car of her own and regularly drives vehicles that her employer furnishes and keeps available for her use. She wants her personal auto policy to protect her while she drives those vehicles. Which endorsement addresses that exposure?

Question 15: An Arizona insured's covered auto is stolen from a shopping center lot in Mesa and is not recovered for two weeks. She must rent a car to get to work while the claim is investigated. Which coverage responds to that rental cost?

Question 16: An Arizona applicant in Yuma asks the least amount of automobile liability coverage she may purchase on a policy issued today in order to satisfy the state's motor vehicle financial responsibility requirement. Which of the following states those minimum limits?

Question 17: An Arizona claims adjuster reviews an automobile policy that was last renewed several months before the state raised its financial responsibility limits and has not been renewed since. Which of the following describes the minimum limits that policy must carry?

Question 18: An Arizona resident registers a newly purchased vehicle at a motor vehicle office in Bullhead City and asks her producer how long she has to submit proof that the vehicle carries Arizona insurance. Which of the following states that period?

Question 19: An Arizona insurer offered uninsured and underinsured motorists coverage in writing on the required form when a policy was first written, and the insured declined it. The policy has now been renewed twice. Which of the following describes the insurer's continuing duty?

Question 20: An Arizona insured carries bodily injury liability limits of one hundred thousand dollars for each person and asks her producer for uninsured motorists limits well above that figure. Which of the following describes what the insurer must make available?

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