Chapter 7- Miscellaneous Personal Lines Coverage

Which of the following coverage statements is correct about the fine arts floater?

Coverage is automatic on newly acquired items for 90 days

Choose the false statement about an umbrella liability policy

Property in the care and custody of the insured is covered

All of the following statements regarding flood insurance are true, except:

The policy applies a deductible only to loss of contents

When an insureds boat is in storage, which of the warranty allows for a return on premium?

Lay up

An insured who has coverage under the NFIP with a $500 deductible for the dwelling and contents sustains flood damage to both their home and personal property. What is the maximum the insured will have to pay for damages assuming the loss is under the policy limit?

$1,000

K has a 10-piece antique fountain pen set that is insured with a pair of and sets clause and is valued at $10,000. Each pen alone is only worth $500. if one pen is destroyed in a covered loss, how much will the policy pay?

$5,500

Which of the following may be insured on a replacement cost basis under the national flood insurance program?

1-to-4 family residences and residential condominiums

All of the following are true to a Yacht Policy, Except:

A Yacht is covered regardless of its location

Which of the following losses would not be covered under a NFIP policy?

A water main in the street breaks, flooding the insured's basement

Which of the following coverage statements is correct about the Fine Arts Floater?

Coverage is automatic on newly acquired items for 90 days

Mobile Home Insurance includes all of the following, except:

Coverage C with limit of 50% of Coverage A

Which of the following is not true of the National Flood Insurance Program?

Coverage becomes effective 24 hours after the applicant completes the application and pays the premium

Which of the following statements about the National Flood Insurance Program is False?

Coverage becomes effective after a 24-hour waiting period

Choose the false statement regarding Flood Insurance

Coverage is provided for damage to growing crops

All of the following are true of the fine arts floater, except:

Coverage is written on a replacement cost basis

Umbrella policies provided converge on which basis?

Excess

Which of the following is covered by Crop Hail Insurance?

Damage caused by freezing, drought, insects and disease

For an antique insured under a Personal Articles Floater, coverage would not be provided for damage caused by:

Damage caused by the insured during a heated argument

All the following are true of an Umbrella Liability Policy, except:

Damage to property in the care and custody of the insured is covered

How is Mobile Home Insurance written

Either by writing a separate Mobile homeoweners policy or by adding an endorsement to a homeowners policy

After being rejected by and insurer due to underwriting guidelines an applicant may request homeowners coverage under which of the following?

FAIR Plan

When his clients homeowners policy application is rejected by an insurance company due to underwriting rules, an insurance agent may request coverage under which of the following?

FAIR plan

Which of the following statements is true regarding the eligibility of flood insurance?

In order to qualify for a federal loan, the property owner must purchase flood insurance is the property is located in a flood area

The personal Articles Floater is used to do which of the following?

Insure individual personal property on a scheduled basis

The Lay Up Warranty under the Yacht Policy is best described by which of the following?

It applies when the insured yacht is in storage and allows a return of premium due to lower risk

Which statement is true about crop/hail insurance?

It covers only one growing season

Which of the following is true regarding the boatowners policy?

It is similar in design to a Homeowners Policy and similar in coverage to the personal auto policy

Which of the following is not true of the Yacht Policy?

It provides coverage regardless of its territory

Section I of the Boat owners Policy provides which type of coverage and settlement option?

It provides open peril coverage and losses are settled on an actual cash value basis

Which of the following statements regarding Multi- peril crop Insurance is correct:

Mulit- peril crop insurance is reinsured by the federal government by FCIC

Which of the following statements regarding Multi- Peril Crop Insurance is correct:

Multi- peril crop insurance is reinsured by the federal government by FCIC

Which of the following is true regarding the Camera Floater?

Newly acquired are covered up to 25% of the policy amount until reported

An insurance agent would recommend which of the following floaters to his client who is traveling to Europe for a month's vacation?

Personal effects floater

Multi-peril crop insurance covered causes of loss include all of the following except:

Pollution

The personal Umbrella Policy does not provide coverage for which of the following?

Property damage liability to property in the insured's care

The personal Articles Floater is similar to which of the following endorsements?

The Scheduled Personal property endorsement

Which statement is false regarding the National Flood Insurance Program?

The policy provides unlimited coverage for qualified property owners

Which statement about the Umbrella Liability Policy is false>

The standard deductible on an umbrella policy is $100,000

Which of the following is true regarding the Difference in Conditions Policy?

There is no coin insurance clause or pro rata clause and it may be written for a different amount from the policy it complements

Which of the following is a false statement about the National Flood Insurance Program?

There is no deductible

The personal articles floater policy is written:

To provide coverage worldwide with some exceptions

Under personal inland marine insurance, the personal articles floater is:

Used to insure individual personal property on an itemized or scheduled basis

Fine arts and antiques are classes of property insured on a:

Valued basis

When an insureds boat is in storage, which warranty allows for a return on premium?

lay up

A personal umbrella policy will not provide coverage for which of the following

property damage liability to property in the insureds care