APCI - Arizona Property and Casualty Insurance Exam

Question 21: An Arizona producer explains to a client that one important difference between the dwelling program and the homeowners program concerns what a standard unendorsed policy does with stolen property and with the owner's legal exposure. Which of the following states that difference?

Both are included in the dwelling form

Theft is included but liability is not

Liability is included but theft is not

Neither is included in the dwelling form

Question 22: A tenant renting an apartment in central Phoenix wants coverage for her furniture, clothing and electronics along with personal liability, but she owns none of the building and needs no coverage on the structure. Which homeowners form fits her situation?

HO-2

HO-4

HO-6

HO-8

Question 23: An Arizona homeowner in Gilbert wants her house and detached garage covered against every cause of loss the policy does not exclude, while accepting broad named peril coverage on her furniture and clothing. Which homeowners form matches that combination exactly?

HO-2

HO-4

HO-3

HO-5

Question 24: An Arizona condominium owner in Scottsdale needs coverage for her personal property, for improvements she installed inside her unit, and for her personal liability, while the association insures the building shell. Which homeowners form is written for her?

HO-6

HO-3

HO-4

HO-8

Question 25: An older adobe house in a historic Arizona mining town would cost far more to duplicate with original materials than the property could ever sell for. The owner wants coverage that reflects that reality. Which homeowners form is intended for her?

HO-3

HO-8

HO-5

HO-6

Question 26: An Arizona buyer in Chandler wants the broadest protection the homeowners program offers, with open peril coverage applying to the dwelling, to the detached structures and to her personal property alike. Which homeowners form should her producer recommend?

HO-2

HO-3

HO-4

HO-5

Question 27: A producer reviews four applicants for homeowners coverage in Arizona: a tenant, an owner who lives in one unit of a triplex he owns, an owner of a vacant lot, and an owner living in a single family home in Tempe. Which applicant is eligible for a standard homeowners policy?

The tenant seeking dwelling coverage

The owner of the vacant lot

The owner living in the Tempe home

Nobody in this group qualifies

Question 28: A wildfire in the Verde Valley destroys an Arizona insured's detached casita, and her homeowners declarations show four hundred thousand dollars on the dwelling with no separate figure for the casita. Which of the following describes the automatic limit available?

Five percent of the dwelling limit

Ten percent of the dwelling limit

Twenty percent of the dwelling limit

Fifty percent of the dwelling limit

Question 29: A covered kitchen fire makes an Arizona family's Mesa home unlivable for four months, and they must rent a house nearby while repairs are completed. Which homeowners coverage pays the increase in their living costs during that period?

Coverage A

Coverage B

Coverage C

Coverage D

Question 30: A burglar takes an Arizona insured's cash from a bedroom drawer, a coin collection and a shotgun during a break-in in Peoria. She is surprised that her homeowners policy caps what it will pay on each of those categories. Which provision produces that result?

The special limits of liability

The coinsurance clause

The pair or set clause

The liberalization clause

Question 31: An Arizona homeowner's wallet is stolen in Flagstaff and the thief runs up charges on her credit cards and forges two of her checks before she can report the theft. Which homeowners additional coverage responds to those losses?

Loss assessment

Landlord's furnishings

Collapse

Credit card, forgery and counterfeit money

Question 32: An Arizona homeowner belongs to a Scottsdale association whose clubhouse suffers a loss the association's own policy does not fully cover, and the association levies a charge against every owner to fund the repair. Which homeowners additional coverage responds to that charge?

Loss assessment

Ordinance or law

Debris removal

Reasonable repairs

Question 33: An Arizona homeowner in Tucson discovers that hidden decay has caused part of her floor to fall in abruptly, and she had no way of seeing the deterioration beforehand. Which homeowners additional coverage most likely responds to this loss?

Ordinance or law

Loss assessment

Collapse

Landlord's furnishings

Question 34: An Arizona homeowner rents out a spare bedroom in her Tempe house and furnishes it with a bed, a dresser and a small refrigerator that belong to her. Which homeowners additional coverage is written specifically for that property?

Loss assessment

Landlord's furnishings

Property removed

Trees, shrubs and other plants

Question 35: A covered fire destroys a substantial part of an Arizona insured's older home in Globe, and the town now requires any building damaged beyond a stated share to be rebuilt to current code. Which homeowners coverage funds that added expense?

Ordinance or law

Collapse

Loss assessment

Debris removal

Question 36: A guest at an Arizona insured's home in Gilbert falls down the porch steps and sues the homeowner, claiming the handrail was loose. Which homeowners coverage pays the damages the insured becomes legally obligated to pay and supplies a defense?

Coverage C

Coverage D

Coverage E

Coverage F

Question 37: A delivery driver twists an ankle on an Arizona insured's walkway in Surprise and needs an urgent care visit. The homeowner wants the bill paid promptly without any determination that she was careless. Which coverage responds to that request?

Coverage C

Coverage D

Coverage E

Coverage F

Question 38: An Arizona insured's teenage son throws a baseball through a neighbor's window in Chandler. The homeowner wants the neighbor made whole without the neighbor having to prove anyone was negligent. Which homeowners additional coverage under Section II applies?

Loss assessment

Damage to property of others

Claim expenses

First aid expenses

Question 39: An Arizona homeowner runs a small tax preparation practice from a spare room and is sued by a client over advice given there. She asks whether her homeowners liability coverage will respond to the suit. Which of the following is correct?

It responds, the loss being at home

It responds after a business deductible

Business pursuits are excluded

It responds only to bodily injury

Question 40: An Arizona homeowner deliberately sets fire to a storage shed on his property in Kingman after a dispute with a family member, then files a claim on his homeowners policy. Which of the following explains why the insurer will not pay?

The shed was not scheduled

Other structures are always excluded

The loss was below the deductible

Intentional loss is excluded

APCI Arizona Property and Casualty Insurance Exam - Set 3 - Part 2

Question 21: An Arizona producer explains to a client that one important difference between the dwelling program and the homeowners program concerns what a standard unendorsed policy does with stolen property and with the owner's legal exposure. Which of the following states that difference?

Question 22: A tenant renting an apartment in central Phoenix wants coverage for her furniture, clothing and electronics along with personal liability, but she owns none of the building and needs no coverage on the structure. Which homeowners form fits her situation?

Question 23: An Arizona homeowner in Gilbert wants her house and detached garage covered against every cause of loss the policy does not exclude, while accepting broad named peril coverage on her furniture and clothing. Which homeowners form matches that combination exactly?

Question 24: An Arizona condominium owner in Scottsdale needs coverage for her personal property, for improvements she installed inside her unit, and for her personal liability, while the association insures the building shell. Which homeowners form is written for her?

Question 25: An older adobe house in a historic Arizona mining town would cost far more to duplicate with original materials than the property could ever sell for. The owner wants coverage that reflects that reality. Which homeowners form is intended for her?

Question 26: An Arizona buyer in Chandler wants the broadest protection the homeowners program offers, with open peril coverage applying to the dwelling, to the detached structures and to her personal property alike. Which homeowners form should her producer recommend?

Question 27: A producer reviews four applicants for homeowners coverage in Arizona: a tenant, an owner who lives in one unit of a triplex he owns, an owner of a vacant lot, and an owner living in a single family home in Tempe. Which applicant is eligible for a standard homeowners policy?

Question 28: A wildfire in the Verde Valley destroys an Arizona insured's detached casita, and her homeowners declarations show four hundred thousand dollars on the dwelling with no separate figure for the casita. Which of the following describes the automatic limit available?

Question 29: A covered kitchen fire makes an Arizona family's Mesa home unlivable for four months, and they must rent a house nearby while repairs are completed. Which homeowners coverage pays the increase in their living costs during that period?

Question 30: A burglar takes an Arizona insured's cash from a bedroom drawer, a coin collection and a shotgun during a break-in in Peoria. She is surprised that her homeowners policy caps what it will pay on each of those categories. Which provision produces that result?

Question 31: An Arizona homeowner's wallet is stolen in Flagstaff and the thief runs up charges on her credit cards and forges two of her checks before she can report the theft. Which homeowners additional coverage responds to those losses?

Question 32: An Arizona homeowner belongs to a Scottsdale association whose clubhouse suffers a loss the association's own policy does not fully cover, and the association levies a charge against every owner to fund the repair. Which homeowners additional coverage responds to that charge?

Question 33: An Arizona homeowner in Tucson discovers that hidden decay has caused part of her floor to fall in abruptly, and she had no way of seeing the deterioration beforehand. Which homeowners additional coverage most likely responds to this loss?

Question 34: An Arizona homeowner rents out a spare bedroom in her Tempe house and furnishes it with a bed, a dresser and a small refrigerator that belong to her. Which homeowners additional coverage is written specifically for that property?

Question 35: A covered fire destroys a substantial part of an Arizona insured's older home in Globe, and the town now requires any building damaged beyond a stated share to be rebuilt to current code. Which homeowners coverage funds that added expense?

Question 36: A guest at an Arizona insured's home in Gilbert falls down the porch steps and sues the homeowner, claiming the handrail was loose. Which homeowners coverage pays the damages the insured becomes legally obligated to pay and supplies a defense?

Question 37: A delivery driver twists an ankle on an Arizona insured's walkway in Surprise and needs an urgent care visit. The homeowner wants the bill paid promptly without any determination that she was careless. Which coverage responds to that request?

Question 38: An Arizona insured's teenage son throws a baseball through a neighbor's window in Chandler. The homeowner wants the neighbor made whole without the neighbor having to prove anyone was negligent. Which homeowners additional coverage under Section II applies?

Question 39: An Arizona homeowner runs a small tax preparation practice from a spare room and is sued by a client over advice given there. She asks whether her homeowners liability coverage will respond to the suit. Which of the following is correct?

Question 40: An Arizona homeowner deliberately sets fire to a storage shed on his property in Kingman after a dispute with a family member, then files a claim on his homeowners policy. Which of the following explains why the insurer will not pay?

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