WPCI Washington Property and Casualty Insurance Exam - Set 3 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: An insured plans to drive her covered auto on a vacation and wants to know where the personal auto policy territory applies. Her producer lists covered areas and notes one common destination that is excluded unless coverage is specifically added. Which destination falls outside the policy territory?

The United States

Puerto Rico

Canada

Mexico

Question 42: An owner of an older home whose ornate features would cost far more to duplicate than the house is worth needs a homeowners form that settles dwelling losses on an actual cash value basis. Which homeowners form is designed for such older, higher-repair-cost dwellings that would cost more to rebuild?

The special form

The comprehensive form

The modified form

The tenants form

Question 43: An underwriter reviews vehicles for eligibility as covered private passenger autos, remembering that vehicles used for business generally do not qualify, though farming is not treated as a business. Which vehicle qualifies as an eligible covered auto under the personal auto policy?

A taxi carrying paying fares

A delivery van for the business

A heavy truck over the limit

A pickup used on the farm

Question 44: A Vancouver insured is hurt by a driver whose liability limits actually equal the insured's own underinsured motorist limits, yet her damages are much larger than those limits. She asks when Washington treats the other driver as underinsured. When is the driver considered underinsured?

Only when limits trail the insured's UIM

When damages exceed the tortfeasor's limits

Only when the driver has none

When the tortfeasor lives elsewhere

Question 45: After a windstorm, a homeowner calls the fire department, which charges a service fee for responding to protect the covered dwelling. She asks how much the homeowners fire department service charge additional coverage pays, and whether a deductible applies. What is that amount?

One thousand dollars

Two hundred fifty dollars

Five hundred dollars

No set limit applies

Question 46: After the insured's covered auto is stolen from a parking lot, the adjuster reminds him that Part E imposes duties after a loss before the claim can be paid. Which specific duty must the insured perform following the theft of his covered vehicle?

Promptly notify the police

Repair the auto before inspection

Dispose of the damaged auto

Pay the claim himself first

Question 47: An insurer preparing a personal injury protection offer must include the minimum medical and hospital benefit the statute requires it to make available per insured. A producer asks the smallest medical benefit amount that satisfies the minimum coverage requirement. What is that minimum medical benefit?

Two thousand dollars

Thirty-five thousand dollars

Ten thousand dollars

One hundred thousand dollars

Question 48: A homeowner is sued after her dog bites a visitor, and she wants to know the base amount her homeowners Coverage E personal liability provides for such an occurrence before any optional increase. On what basis is that base liability limit stated?

One thousand per person

Fifty thousand aggregate yearly

Two hundred fifty thousand lifetime

One hundred thousand per occurrence

Question 49: An insured from a state with low minimums drives her covered auto into another state that requires higher liability limits, and an accident occurs there. She asks how the out-of-state provision decides which liability amount her Part A will pay. Which amount does the policy provide?

The higher applicable limit

The lower applicable limit

No coverage out of state

Only the home-state minimum

Question 50: A Seattle applicant asks her producer for the baseline bodily injury and property damage liability limits that Washington law requires every private passenger driver to carry on an auto policy. Stated in thousands of dollars, what are Washington's minimum motor vehicle liability limits?

Fifteen, thirty, and five thousand

Twenty-five, fifty, and ten thousand

Fifty, one hundred, twenty-five thousand

One hundred, three hundred, fifty thousand

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