Insurance- Property Types Of Policies Review

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  1. Which of the following is false regarding an inland marine policy?
    A: It may be written to cover radio towers
    B: It is all-risk coverage
    C: It may be written to cover bridges and/or tunnels
    D: It may be written on automobiles
    D: It may be written on automobiles
  2. An unendorsed BOP covers:
    A: Money and securities
    B: Mechanical breakdown
    C: Earthquake
    D: Burglary and robbery
    D: Burglary and robbery
  3. The cause of loss basic form covers all of the following EXCEPT:
    A: Broken glass
    B: Sinkhole collapse
    C: Sprinkler leakage
    D: Vandalism
    A: Broken glass
  4. Which of the following is true concerning a flood insurance policy?
    A: You can increase your flood insurance limit after the policy has been in force 30 days
    B: Coverage is ACV
    C: The deductible is $2,000
    D: Coverage begins immediately
    A: You can increase your flood insurance limit after the policy has been in force 30 days
  5. On an HO-6 ('00), coverage for personal property is:
    A: Basic form named perils
    B: Broad form named perils
    C: Replacement cost
    D: Special form all-risk
    B: Broad form named perils
  6. On commercial property insurance, all are true about coverage for loss caused by the enforcement of laws regulating building repair or construction EXCEPT:
    A: It is automatically covered on all property policies
    B: It covers modernization required by updated building codes
    C: It is an optional endorsement requiring an additional premium
    D: It is called ordinance or law coverage
    A: It is automatically covered on all property policies
  7. On a DP policy, which provision applies to a loss when 2 or more policies are in force?
    A: Coinsurance
    B: Liberalization
    C: Other insurance
    D: Subrogation
    C: Other insurance
  8. Changes to a CPP may be made by adding a:
    A: Rider
    B: Provision
    C: Supplement
    D: Endorsement
    D: Endorsement
  9. Coverage F on an HO ('00) policy is:
    A: Theft
    B: Medical to others
    C: Personal liability
    D: Personal property
    B: Medical to others
  10. All are true about medical coverage on an HO ('00) policy EXCEPT:
    A: It covers expenses incurred within 3 years of the date of accident
    B: It covers resident employees
    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
  11. A bailee's customers policy:
    A: Protects an insured from liability for injury to customers
    B: Is purchased by individual customers of a bailee
    C: Covers damage to the insured's property caused by customers
    D: Covers damage to customers' property, whether or not the insured is liable
    D: Covers damage to customers' property, whether or not the insured is liable
  12. Vacancy on a commercial property policy is defined as more than _____ consecutive days.
    A: 60
    B: 45
    C: 30
    D: 90
    A: 60
  13. On a CPP, the common policy declarations states all EXCEPT:
    A: A schedule of coverage parts and premiums for each
    B: The named insured and type of business
    C: A list of all covered cause of loss
    D: The policy period
    C: A list of all covered cause of loss
  14. Where would you find coverage on a farm policy for a satellite dish?
    A: Coverage C
    B: Coverage A
    C: Coverage E
    D: Coverage B
    B: Coverage A
  15. A DP (dwelling fire policy) is usually written on an owner occupied dwelling when:
    A: It is part of a farm
    B: It is a duplex and only one side is owner occupied
    C: It cannot qualify for an HO policy
    D: It is used for commercial purposes
    C: It cannot qualify for an HO policy
  16. A client has business income insurance with a policy limit of $20,000 and a monthly maximum of 25%. After a 30 day claim, he has lost $5,000 in income and has had $2,000 in continuing expenses. How much will his policy pay?
    A: $5,000
    B: 0
    C: $7,000
    D: $2,000
    A: $5,000
  17. Which of the following is true about inland marine floaters?
    A: The floater pays claims on a replacement cost basis
    B: The floater has a deductible
    C: The floater pays claims on an actual cash value basis
    D: The floater is named peril
    C: The floater pays claims on an actual cash value basis
  18. If someone with a boat owners policy borrows your boat and negligently injures a swimmer, your boat owners policy:
    A: Is primary
    B: Is excess
    C: Will pay pro-rata
    D: Will not cover
    A: Is primary
  19. All are true about an HO-4 ('00) policy EXCEPT:
    A: It is also known as contents broad form coverage
    B: It covers both personal property and personal liability
    C: It is often sold to those who rent apartments
    D: It does not cover theft of personal property
    D: It does not cover theft of personal property
  20. A commercial property condition that automatically provides broader coverage when the insurer makes revisions to a current policy edition without charging an additional premium is the:
    A: Other insurance clause
    B: Liberalization clause
    C: Additional coverage clause
    D: Assignment clause
    B: Liberalization clause
  21. Section I of an HO ('00) policy covers all EXCEPT:
    A: Dwelling
    B: Loss of use
    C: Other structures
    D: Medical to others
    D: Medical to others
  22. On a BOP, loss of business income is covered up to a maximum of:
    A: 6 months
    B: 24 months
    C: 12 months
    D: 3 months
    C: 12 months
  23. The federal government offers some types of insurance for the following reasons EXCEPT:
    A: To prevent fraud
    B: To provide coverage for catastrophic losses
    C: To fill a social need
    D: To provide coverage when private insurers will not
    A: To prevent fraud
  24. A DP-3 ('02) special form dwelling policy covers which of the following?
    A: Wear and tear
    B: Liability to others
    C: Mechanical breakdown
    D: Theft of built-in appliances
    D: Theft of built-in appliances
  25. When damage occurs to covered equipment by water, how much will the boiler and machinery policy pay?
    A: $25,000
    B: $5,000
    C: $50,000
    D: $75,000
    A: $25,000

Card Set Information

Author:
Anonymous
ID:
292159
Filename:
Insurance- Property Types Of Policies Review
Updated:
2014-12-28 21:13:06
Tags:
Insurance
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Description:
Property types review
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