Insurance- Property section 3B

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h_scott
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292130
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Insurance- Property section 3B
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2014-12-27 19:30:04
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Property insurance section 3b
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  1. A special limit on an HO policy applies to:
    A: Cameras
    B: Antiques
    C: Stereos
    D: Money
    D: Money
  2. All HO policies that cover dwellings cover all of the following EXCEPT:
    A: Liability
    B: Theft
    C: Medical payments
    D: All-risk coverage
    D: All-risk coverage
  3. Coverage for real property on an HO-3 ('00) policy is:
    A: Open perils
    B: Actual cash value
    C: Specified perils
    D: Named perils
    A: Open perils
  4. A personal articles floater provides coverage on what basis?
    A: Stated amount
    B: Valued
    C: Replacement cost
    D: Actual cash value
    D: Actual cash value
  5. On an all-risk HO-3 ('00), which of the following is fully covered?
    A: Dropping and breaking your $2,500 camera
    B: Theft of your outboard motor from your boat at the marina
    C: Your canoe is stolen from your unattached garage
    D: Theft of your $2,500 Rolex
    C: Your canoe is stolen from your unattached garage
  6. You negligently injure Jim while playing ball at the park. Section II of your HO ('00) will cover all of the following EXCEPT:
    A: Cost of defense
    B: Jim's bodily injury
    C: Jim's loss of income
    D: Your medical bills
    D: Your medical bills
  7. Property of all of the following are covered by an HO policy EXCEPT:
    A: Children away at college
    B: Boarders
    C: Guests
    D: Relatives residing with the insured
    B: Boarders
  8. On an HO policy, an endorsement may be added to cover personal injury liability, which covers all of the following EXCEPT:
    A: Defamation
    B: Libel
    C: Bodily injury
    D: Slander
    C: Bodily injury
  9. You injure someone while playing ball at the park. Your HO liability will cover the injured party's:
    A: Medical bills
    B: Pain, suffering, and (if death occurs) funeral expenses
    C: All would be covered if you were at-fault
    D: Loss of income
    C: All would be covered if you were at-fault
  10. Coverage F, medical payments, on an HO policy pays the injured party's expenses:
    A: Indefinitely, as long as the policy is in force
    B: Incurred within 1 year of the injury
    C: Incurred within 2 years of the injury
    D: Incurred within 3 years of the injury
    D: Incurred within 3 years of the injury
  11. All of the following distinguish the homeowners policy from the dwelling policy EXCEPT:
    A: The homeowners policy covers personal liability and medical payments to others
    B: Homeowners property coverages are in addition to one another
    C: Homeowners Coverages A and C must be declared separately on the declarations page, and an extra premium paid
    D: The homeowners policy covers theft of contents
    C: Homeowners Coverages A and C must be declared separately on the declarations page, and an extra premium paid
  12. Which of the following is a correct definition of coinsurance?
    A: A clause that allows the insurer to take action against a third party for reimbursement of loss settlements made with the insured
    B: A requirement that the insured carry insurance equal to a specified percentage of the property value, to be fully indemnified under the policy
    C: Two or more buildings that are covered under a single policy
    D: Two or more policies that apply to the same property
    B: A requirement that the insured carry insurance equal to a specified percentage of the property value, to be fully indemnified under the policy
  13. A fire totally destroys your home. Your HO-3 ('00) policy would cover all of the following EXCEPT:
    A: Your motor vehicle in the garage
    B: Your $2,500 Rolex
    C: Your antique furniture
    D: Your riding lawn mower in the garage
    A: Your motor vehicle in the garage
  14. For nonpayment of premium, insurers must give at least _____ days advance written notice when canceling a DP or HO policy:
    A: 60
    B: 10
    C: 30
    D: 20
    B: 10
  15. All are true about medical payments on a homeowners policy EXCEPT:
    A: They are designed to prevent lawsuits
    B: They will not be paid unless the insured is negligent
    C: They are to others
    D: They are no fault
    B: They will not be paid unless the insured is negligent
  16. On an HO, persons insured would include all of the following EXCEPT:
    A: A legal representatives of a deceased named insured
    B: An unrelated tenant living with you
    C: Other persons under 21 in your care who live with you
    D: Your relative living with you
    B: An unrelated tenant living with you
  17. Your HO policy covers liability for all of the following EXCEPT:
    A: Loading or unloading of a motor vehicle
    B: An off-road RV used on the premises
    C: A golf cart while on the golf course
    D: Outboard boats with 25 total hp or less
    A: Loading or unloading of a motor vehicle
  18. Which HO policy is considered the best and most popular?
    A: HO-4
    B: HO-3
    C: HO-8
    D: HO-2
    B: HO-3
  19. All of the following are true regarding medical payments on an HO EXCEPT:
    A: They are subject to a deductible
    B: They are goodwill coverages
    C: They are to others, not to the insured
    D: They do not require negligence in order for coverage to apply
    A: They are subject to a deductible
  20. All are true about the cost of defense on a liability policy EXCEPT:
    A: They are covered, even if the claim is groundless or excluded
    B: The insurer has the option to select the lawyer
    C: It is in addition to limits
    D: It will no longer be paid once the policy limits have been paid out
    A: They are covered, even if the claim is groundless or excluded
  21. On an HO-3 ('00), freezing of plumbing is:
    A: Covered if an optional endorsement is purchased
    B: Not covered if the building is unoccupied
    C: Covered if reasonable care was used to maintain the heat in the building
    D: Excluded
    C: Covered if reasonable care was used to maintain the heat in the building
  22. All of the following are true about personal articles floaters EXCEPT:
    A: Appraisals are usually required
    B: Coverage is provided on a blanket basis
    C: Most are ACV
    D: Coverage is all-risk
    B: Coverage is provided on a blanket basis
  23. Conditions contained in an HO-3 policy require the insured, after a loss, to do all of the following EXCEPT:
    A: Protect the property from further damage
    B: Abandon the property to the insurer
    C: Notify the police in case of loss by theft
    D: Give prompt notice of the claim to the insurer or producer
    B: Abandon the property to the insurer
  24. You have an HO-3 policy on your dwelling that you are in the process of moving out of. How long are your contents that you move to your new residence automatically covered on your policy?
    A: 30 days
    B: 10 days
    C: 60 days
    D: 20 days
    A: 30 days
  25. Fine arts floaters provide for payment of the full policy limit in the event of a total loss, regardless of the actual value of the property. This is called a(n):
    A: Market value contract
    B: Replacement cost contract
    C: Valued contract
    D: ACV contract
    C: Valued contract
  26. Coverages A and B on an HO policy are automatically adjusted at renewal to keep up with the increasing costs of construction. This is called:
    A: Inflation guard endorsement
    B: Automatic increase endorsement
    C: Cost of living endorsement
    D: Index endorsement
    A: Inflation guard endorsement
  27. Your all-risk HO policy excludes all of the following EXCEPT:
    A: Loss caused by vandalism of an unoccupied premise
    B: Loss caused by enforcement of an ordinance or law except as provided as an additional coverage
    C: Loss caused by earth movement
    D: Loss caused by flood
    A: Loss caused by vandalism of an unoccupied premise
  28. On an HO-3, which of the following is covered without special endorsement?
    A: Animal, birds or fish
    B: Damage done to the insured's own property by his own dog
    C: The land upon which the dwelling is situated
    D: Jewelry, furs and firearms up to certain limits
    D: Jewelry, furs and firearms up to certain limits
  29. Which of the following coverages is/are always included in Section I of all homeowners policies?
    A: Both "Coverage C - personal property" and "Coverage D - loss of use"
    B: Coverage C - personal property
    C: Neither "Coverage C - personal property" nor "Coverage D - loss of use"
    D: Coverage D - loss of use
    A: Both "Coverage C - personal property" and "Coverage D - loss of use"
  30. On a mobile homeowners policy, Coverage D is how much?
    A: 5% of C
    B: 10% of A
    C: 30% of C
    D: 30% of A
    D: 30% of A
  31. The main difference between an HO-4 ('00) and other HO forms is the coverage for:
    A: Medical to others
    B: Real property
    C: Personal property
    D: Personal liability
    B: Real property
  32. On which type of policy is appraisal of the property not relevant?
    A: Homeowners sold on a replacement cost basis
    B: A fine arts floater insuring a painting
    C: Auto physical damage
    D: Dwelling fire sold on an ACV basis
    B: A fine arts floater insuring a painting
  33. An HO-3 policy provides which coverage for contents:
    A: Broad form
    B: Basic form
    C: All-risk
    D: Special form
    A: Broad form
  34. Each of the following is true about homeowners personal property coverage EXCEPT:
    A: Theft of personal property is covered
    B: The full limit applies to personal property anywhere in the world
    C: Special sub-limits apply to some types of personal property
    D: Personal property of a guest may be covered
    B: The full limit applies to personal property anywhere in the world
  35. Which of the following is not eligible for coverage under an HO?
    A: Farm residences
    B: Condo unit owners
    C: Mobile homes used as a permanent residence
    D: Tenants living in apartments
    A: Farm residences
  36. Personal articles floaters are purchased for all of these EXCEPT:
    A: Stamp collections
    B: Jewelry
    C: Loose gem stones
    D: Musical instruments
    C: Loose gem stones
  37. Medical payments coverage on a homeowners policy covers:
    A: Injury to the insured
    B: Trespassers
    C: Residence employee in the course of employment
    D: Child away at college
    C: Residence employee in the course of employment
  38. Which of the following is not a special limit under Coverage C of an HO ('00) policy?
    A: $1,500 on grave markers
    B: $2,500 on theft of firearms
    C: $1,500 on theft of jewelry
    D: $1,500 on watercraft
    A: $1,500 on grave markers
  39. All are excluded on the HO-3 EXCEPT:
    A: Animals, birds and fish
    B: Flood and sewer backup
    C: Off premises power failure
    D: Personal property away from the premises
    D: Personal property away from the premises
  40. An insured with an HO-2 rents his garage to his neighbor who uses it as a commercial woodworking shop. If the garage burns, how much will the HO policy pay?
    A: 0
    B: The ACV
    C: The replacement cost
    D: 10% of A
    A: 0
  41. Medical payments under a homeowners policy cover expenses resulting from an injury to:
    A: Any regular resident of the insured's household
    B: The named insured
    C: A residence employee
    D: A person who is on the insured location without permission
    C: A residence employee
  42. The HO-4 (tenant HO) and the HO-6 (condo HO) are alike EXCEPT:
    A: Both have replacement cost coverage
    B: Both cover theft of personal property
    C: Both cover personal property and liability
    D: Both have a deductible on the property section
    A: Both have replacement cost coverage
  43. Your client usually pays $1,200 a month to live in her dwelling. After a fire, she and her family have to stay in a hotel at a cost of $1,700 a month. Her HO policy's Coverage D, additional living expense, will pay how much of this?
    A: $1,700
    B: $1,200
    C: None
    D: $500
    D: $500
  44. You have 5 identical glass plates, worth $10,000 each, but as a set they are worth $60,000. In the event that 1 of the plates is damaged, how much will the insurer pay?
    A: $60,000
    B: $20,000
    C: $10,000
    D: $50,000
    B: $20,000
  45. Under an HO ('00) policy, the Section II additional coverage for first aid will apply to:
    A: A 16 year old foreign exchange student living with you
    B: A friend helping you install a new carpet
    C: Your parent living with you
    D: Your children away at college
    B: A friend helping you install a new carpet
  46. Each of the following is a coverage under Section I of the homeowners forms EXCEPT:
    A: Medical payments
    B: Dwelling
    C: Other structures
    D: Personal property
    A: Medical payments
  47. Which owned boat is automatically covered under Part II of a homeowners policy?
    A: 100 hp inboard
    B: 28' sailboat
    C: 40 hp outboard
    D: 12' kayak
    D: 12' kayak
  48. Ben drives his uninsured auto into his own home, which is insured on an HO-2. Which of the following is true?
    A: This is covered by his homeowners policy
    B: This is excluded by his homeowners policy
    C: The damages caused to the home and the trees, shrubs, plants and lawns is covered by his homeowners policy
    D: This would only be covered if the party that had run into the home did not live in the home
    A: This is covered by his homeowners policy
  49. All are true about medical coverage on an HO ('00) policy EXCEPT:
    A: It covers resident employees
    B: It covers expenses incurred within 3 years of the date of accident
    C: It covers regular residents of your household
    D: Is shown as Coverage F on the declaration page
    C: It covers regular residents of your household
  50. On an HO ('00) policy, which of the following is considered to be a residence employee?
    A: A household domestic doing your grocery shopping
    B: The neighbor boy mowing your lawn
    C: A day nurse caring for your mother
    D: A plumber called to fix your sink
    A: A household domestic doing your grocery shopping
  51. Section II of an HO policy covers all of the following EXCEPT:
    A: Property damage
    B: Bodily injury
    C: Medical
    D: Personal injury
    D: Personal injury
  52. On an HO-3 ('00) policy, an insured location includes all EXCEPT:
    A: Family cemetery plots of an insured
    B: Vacant farm land owned by an insured
    C: A non-owned premises where the insured is temporarily residing
    D: Land owned by the insured where a new residence is being built
    B: Vacant farm land owned by an insured
  53. A personal articles floater may be written to cover all of the following EXCEPT:
    A: A show dog
    B: Jewelry
    C: A postage stamp
    D: Furs
    A: A show dog
  54. An HO-6 provides which type of coverage for contents?
    A: Valued
    B: Named peril
    C: All-risk
    D: Replacement cost
    B: Named peril
  55. Which of the following expenses would be covered under loss of use on an HO-4?
    A: Additional fuel costs due to the insured having to drive farther to work
    B: Costs of food
    C: Expenses involved due to cancellation of the insured's lease
    D: All rent at insured's temporary location
    A: Additional fuel costs due to the insured having to drive farther to work
  56. On an HO-3 ('00), replacement cost coverage applies to:
    A: Coverage A only
    B: All Section I property coverages
    C: Coverages A and B only
    D: Coverage C only
    C: Coverages A and B only
  57. On an HO-3 ('00) policy, freezing of plumbing is covered:
    A: Never
    B: Regardless
    C: If the heat was left on
    D: Only if the home is unoccupied
    C: If the heat was left on
  58. An HO-3 ('00) policy covers:
    A: Animals, birds or fish
    B: Vandalism occurring after 60 days vacancy
    C: Water damage caused by sewer backup
    D: Damage done by burglars
    D: Damage done by burglars
  59. Coverage for trees, shrubs, and plants on an HO-3 is:
    A: Unlimited
    B: All-risk
    C: Limited to a maximum of $500 for any one tree, shrub or plant
    D: Includes windstorm
    C: Limited to a maximum of $500 for any one tree, shrub or plant

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