28. All of the following may be valid defenses against a claim of negligence EXCEPT A) assumption of risk. B) comparative negligence. C) res ipsa loquitur. D) last clear chance rule. 29. In some situations, it is not necessary to prove fault for injuries resulting from an act for the act to be deemed negligent. Such situations are described as involving A) strict (absolute) liability. B) breach of contract. C) comparative negligence. D) contributory negligence. 30. Traditionally, a property owner owed the highest degree of care to a(n) A) trespasser. B) equal care was owed to a trespasser, licensee, and invitee. C) invitee. D) licensee. 31. Bruce was severely injured as a result of Elliot's negligence. As payment for things that cannot be itemized, such as pain, suffering, and disfigurement, Bruce will receive A) special damages. B) punitive damages. C) comparative damages. D) general damages. 32. All of the following are elements that must be established for an act to be deemed negligent EXCEPT A) the existence of a legal duty to use reasonable care. B) damage or injury to the claimant. C) proximate cause between the failure to use reasonable care and the injury. D) no contribution to the injury by the injured party. 33. Which of the following may give rise to imputed negligence? A) employer-employee relationships B) injury to a trespasser C) sole proprietorships D) attractive nuisance situations 34. Which of the following are legal obligations of a property owner with respect to an invitee? 1. The property owner must warn an invitee of any unsafe conditions. II. The property owner must inspect the premises and eliminate any dangerous conditions revealed by the inspection. A) 1 only B) II only C) both I and II D) neither I nor II 35. Situations under which parents can be held liable for the actions of a child include which of the following? I. The child uses a parent's gun to injure someone. II. The child is acting as an agent of the parent. A) 1 only B) II only C) both I and II D) neither I nor II 36. A homeowner was repairing the deck on the back of his home. He left power tools on the deck when he quit working for the day. A neighbor's child saw the power tools. He came on to the deck, and started to play with a power saw. He cut off two of his fingers. A property owner may be held liable for creating a condition that entices children to enter the property where they are injured under the doctrine of A) sovereign immunity. B) attractive nuisance. C) family purpose. D) respondeat superior. 37. Randy was driving through a wooded area late at night when a deer ran in front of his car. Randy's car hit the deer, causing extensive damage to the car. Which of Randy's Personal Auto Policy (PAP) coverages will cover the damage to Randy's car? A) collision coverage B) property damage liability coverage C) uninsured motorists coverage D) other-than-collision loss coverage 38. All of the following are exclusions under the liability coverage of the Personal Auto Policy (PAP) EXCEPT A) intentional injury. B) temporary substitute vehicles. C) liability arising while using the vehicle as a taxi. D) vehicles used in the automobile business. 39. After you have been involved in an auto accident, you should do all of the following EXCEPT A) admit fault if you believe you are at fault. B) promptly notify your insurer of the accident. C) determine if anyone is injured and call an ambulance if necessary. D) exchange your name, address, and insurance information with the other driver. 40. Which of the following statements is (are) true with respect to the medical payments coverage of the Personal Auto Policy (PAP)? I. Medical payments benefits are paid regardless of fault. II. If the insured negligently injures another driver while operating the insured auto, injuries to the other driver are paid under the insured's medical payments coverage. A) neither I nor II B) both I and II C) I only D) 11 only 41. Carl lost control of his vehicle on an icy road. His car slid off the road and hit a tree. The physical damage to Carl's vehicle will be covered under which of Carl's Personal Auto Policy (PAP) coverages? A) physical damage liability coverage B) other-than-collision loss coverage C) uninsured motorist coverage D) collision coverage 42. Uninsured motorists coverage under the Personal Auto Policy (PAP) pays for the bodily injury of an insured in all of the following situations EXCEPT: A) bodily injury caused by a driver who does not have liability insurance B) bodily injury caused by a hit-and-run driver C) bodily injury caused by a business vehicle D) bodily injury caused by a driver whose insurance company is insolvent 43. If your covered auto is damaged in a collision, what is the insurer's liability for the damage under the Personal Auto Policy (PAP)? A) the amount necessary to repair the vehicle B) the greater of the actual cash value of the loss or the amount necessary to repair or replace the vehicle C) the lesser of the actual cash value of the loss or the amount necessary to repair or replace the vehicle D) the replacement cost of the vehicle 50. Which of the ISO homeowners insurance forms is designed specifically for renters? A) Homeowners 2 B) Homeowners 6 C) Homeowners 4 D) Homeowners 3 51. Which of the following statements is (are) true with respect to perils covered under an unendorsed ISO Homeowners 3 policy? I. The dwelling and other structures are covered for all direct physical losses except those losses that are specifically excluded. II. Personal property is covered on a named-perils basis. A) II only B) neither I nor II C) both I and II D) I only 52. All of the following losses are covered under Section I of the ISO Homeowners 3 policy EXCEPT A) damage to personal property. B) cost of a hotel room after a fire damaged the home. C) damage to the dwelling. D) personal liability of the homeowner. 53. Which homeowners insurance contractual provision states that if the insurer broadens the coverage it offers without charging a higher premium, the broadened coverage applies to the coverage already in force? A) insurer's option clause B) suit against the insurer clause C) liberalization clause D) appraisal clause 54. All of the following losses to the dwelling are covered under an unendorsed ISO Homeowners 3 policy EXCEPT A) damage caused by a falling tree. B) damage caused by a tornado. C) damage caused by a fire. D) damage caused by an earthquake. 55. The major difference between the dwelling coverage (Part A) of the Homeowners 2 (Broad From) policy and the Homeowners 3 (Special Form) policy is that A) the HO-3 provides open perils ("all risks") coverage and the HO-2 provides named-perils coverage. B) the HO-3 provides actual cash value coverage, the HO-2 provides replacement cost coverage. C) the HO-3 is always written without a deductible, the HO-2 always written with a deductible. D) the HO-3 can be used for any type of construction, the HO-2 is limited to wood frame homes. 56. Which of the following statements about the coverage for other structures (Coverage B) under the Homeowners 3 policy is true? A) The coverage applies to a detached garage or tool shed on the residence premises. B) Structures attached to the dwelling by a fence or utility line are considered to be part of the dwelling rather than other structures. C) Coverage applies even if the other structure is used for business purposes. D) There is no coverage for a private garage if it is rented to a tenant of the dwelling. 57. Which of the following statements about coverage for loss of use (Coverage D) under the Homeowners 3 policy is true? A) If a covered loss makes the home unfit for living, the insurer pays additional living expenses the insured may incur as a result of the loss. B) The duration of payments for additional living expenses is limited to a maximum of 30 days. C) There is no coverage for loss of rent if an insured peril makes the part of the premises rented to others uninhabitable. D) There is coverage for loss of business income if an insured peril forces a home business to be terminated. 58. Which of the following is (are) included among the duties of an insured following a loss covered under the Homeowners 3 policy? I. To file a proof of loss within a specified time period after the insurer's request II. To prepare an inventory of damaged personal property A) I only B) II only C) both I and II D) neither I nor II 59. Jose and Maria would like "open-perils" coverage on their home and their personal property. Which unendorsed homeowners form provides this coverage? A) Homeowners 2 B) Homeowners 3 C) Homeowners 4 D) Homeowners 5 60. The homeowners policy excludes a loss brought about by two or more perils where one peril is covered under the policy and the other perils are excluded. This situation is called A) ordinance or law. B) proximate cause. C) concurrent causation. D) nullification. 61. Section II of the Homeowners 3 policy covers A) the dwelling and other structures. B) personal liability and medical payments to others. C) personal property owned by the named insured. D) loss of use. 62. All of the following are excluded from coverage under Section II of the Homeowners 3 policy EXCEPT A) liability arising out of operation of a motor vehicle. B) bodily injury liability. C) liability arising out of business activities. D) intentional injury liability. 63. Which of the following statements is (are) true with respect to the Personal Liability and Medical Payments to Others coverages under the Homeowners 3 policy? I. Personal Liability Coverage applies if the named insured caused bodily injury or property damage as a result of his or her negligence. II. It is not necessary to prove that the named insured was negligent for Medical Payments to Others benefits to be paid. A) both I and II B) II only C) neither I nor II D) I only 64. All of the following statements about the cost of homeowners insurance are true EXCEPT A) insurers cannot consider location of the home as a rating factor. B) the higher the deductible, the lower the premium. C) insurers charge less to insure newer homes than to insure older homes. D) the construction material (c.g. wood or brick) is a rating factor. 65. Which of the following statements is (are) true with respect to Section II of the homeowners policy? I. The personal liability limit applies on a per-occurrence basis. II. The medical payments coverage applies to the named insured and members of the named insured's household. A) both I and II B) neither 1 nor II C) II only D) I only 66. Which of the following statements about the insurer's obligation to provide a legal defense under the personal liability coverage (Coverage E) of the homeowners policy is (are) true? 1. The insurer agrees to defend the insured only if the suit is not groundless, false, or fraudulent. II. The insurer's obligation to defend the insured ceases after the amount paid for damages from an occurrence equals the policy limit. A) 1 only B) II only C) both I and II D) neither 1 nor II 67. Which of the following persons is (are) eligible for benefits under medical payments to others (Coverage F) of the homeowners policy? 1. A friend who slips and falls on a wet patio while visiting the named insured II. A neighborhood child who is severely scratched by a cat in the care of the named insured A) I only B) II only C) both I and II D) neither 1 nor II 68. Tom is planning to build a home. He is weighing many factors, including construction materials, location, and other considerations. Which of the following statements is true with regard to homeowners insurance and Tom's new home? A) The higher the construction costs are in the area, the lower Tom's homeowners insurance premiums will be. B) The lower the homeowners deductible selected, the lower the premium will be. C) Older homes cost more to insure than newer homes. D) A wood frame home costs less to insure than a brick home. 69. A credit-based score that is highly predictive of future claims cost is an individual's A) CLUE score. B) insurance score. C) motor vehicle record score. D) underwriting score