P&C CH 5 Homeowners Policy

An insured has a homeowners broad form with a $200,000 limit on the dwelling and the standard deductible. If the insured's $2,500 boat and trailer are stolen from his driveway, what is the most the insured will collect from the policy?

$1,250

Under the unendorsed Homeowners Policy, jewelry is covered up to what amount?

$1,500 for loss by theft

Including debris removal, what is the maximum an HO-3 policy with a Coverage A amount of $250,000 will pay if a detached garage burns down?

$26,250

An HO-3 Policy will pay how much for a tree damaged in a hail storm?

0%

Under a Homeowners policy, Coverage B is what percentage of Coverage A?

10%

Of the following boats, which can be added to the Homeowners Policy for liability protection?

20' sailing boat

Under the Homeowners Policy, an unrelated resident in the care of the insured is covered up to what age?

21

Under the Homeowners Policy, Medical Payments coverage will apply to expenses that are incurred within what length of time following an accident?

3 Years

Residential dwellings with no more than _____ residential units and _____ roomers or boarders per family are eligible under a Homeowners Policy.

4 residential units and 2 roomers or boarders

The amount of insurance provided to cover personal property of a Homeowners Policy is what percentage of Coverage A?

50%

Under an HO-3 policy, what is the coinsurance requirement?

80%

All of the following are considered to be insured under a Homeowners Policy, except:

A 25-year-old friend who is living with an insured

All of the following would be included in the definition of 'insured location', except:

A 5-family dwelling in which the insured lives in one of the units, including the structures and grounds

Coverage C of the Homeowners policy would cover which of the following?

A camera stolen while the insured is on vacation

Which of the following is false in regard to the Home Day Care endorsement?

A day care employee is covered

Section II of a Homeowners Policy covers which of the following for medical payments?

A guest of the insured on the residence premises

Which of the following property is covered under the Homeowners Policy?

A model airplane

Which of the following claims would be covered by the First Aid Expenses under the Homeowners Policy?

A neighbor is injured while helping the insured install a carpet

First Aid Expenses under the Homeowners Policy would cover:

A neighbor who gets injured while helping the insured install a carpet

Which of the following would not be eligible to purchase a Homeowners Policy?

A person who owns and lives on a farm

Which statement is true of Section I of a Homeowners Policy?

A special limit of $1,500 limit applies to watercraft

All of the following are covered under a Homeowners Policy, except:

All living expenses incurred when a dwelling becomes uninhabitable after a covered loss

Which of the following is covered under Section II of a Homeowners Policy?

An injury to a guest of the insured

Coverage C of a Homeowners Policy includes:

An owned camera used by the insured while on vacation in another country

Which property would be settled for its actual cash value even if the Personal Property Replacement Cost Loss Settlement Endorsement is attached to the HO-3 policy?

Antiques

Choose the claim that would be covered under Coverage E of a Homeowners Policy.

Bodily injury to a guest caused by the insured's pet dog

Structures on the premises separated by clear space from the dwelling are covered under which part of the Homeowners Policy?

Coverage B

Choose the false statement about the Homeowners Policy.

Coverage C extends to animals, birds, or fish owned by the insured

Which of the following statements about Coverage C under the Homeowners Policy is false?

Coverage C provides coverage for the property of roomers and boarders

Under the Homeowners policy, which coverage provides indirect loss coverage?

Coverage D

All of the following statements are correct about a Homeowners Policy, except:

Coverage D of a Homeowners Policy includes loss of income from an incidental business

The Home Day Care endorsement does not provide which of the following?

Coverage for a day care employee

Which of the following would be covered under the Damage to Property of Others additional coverage of the Homeowners Policy?

Damage caused intentionally by the insured's 10-year-old son

Which of the following homeowners coverages does not have a deductible?

Damage to Property of Others

Which statement is true concerning Section II of a Homeowners Policy?

Damage to Property of Others coverage is provided up to a specified limit regardless of negligence

Choose the false statement about a Homeowners Policy.

Earth movement is covered in all Homeowners policies

All of the following are defined as insured locations under the Homeowners Policy, except:

Farmland owned by the insured

The HO-8 form settles losses to the building on what valuation method?

Functional Replacement Value

The following are all additional coverages under a Homeowners Policy, except:

Government Action

A tenant should buy which of the following Homeowner Policy Forms?

HO-4

Which form is designed for the unit-owner of a condominium?

HO-6

Which of the following is true concerning the Home Day Care Coverage Endorsement to the Homeowners Policy?

It extends Section II coverages to the insured's home day care business

Which of the following is true regarding an unendorsed HO-4?

It includes the Broad Form named perils on an actual cash value basis

Which of the following claims would be covered under the Personal Injury Endorsement attached to an HO-3 Policy?

Liability arising from publication of material that violates another person's right of privacy

All of the following are true of Section II of a Homeowners Policy, except:

Loss assessment charges against the insured by a property owner's association are excluded

Medical Payments under Section II of the Homeowners Policy would cover all of the following, except:

Loss of income of an injured person

Which statement regarding medical payments under a homeowners policy is true?

Medical payments under a Homeowners Policy will cover funeral expenses

Which of the following coverages is provided under the Additional Coverage of Property Removed?

Open peril coverage for 30 days

The HO-3 dwelling and other structures coverages are insured against which perils?

Open perils

An HO-3 policy provides coverage on which basis?

Open perils coverage on the dwelling and broad form coverage on the personal property

Which type of liability limit applies to Medical Payments coverage?

Per Person

Coverage for injury resulting from invasion of privacy is covered under which Endorsement?

Personal Injury

Which of the following endorsements to the Homeowners Policy adds coverage for injury resulting from libel, slander, false arrest, defamation, invasion of privacy and other such offenses that could result in a personal liability suit?

Personal Injury Endorsement

The following coverages are all found under Section I of the Homeowners Policy, except:

Personal Injury Liability

Which of the following coverages is not included in a standard Homeowners policy?

Personal Injury liability

All of the following definitions are true of a Homeowners Policy, except:

Property damage -- Physical injury to tangible property, but does not include loss of use of that property

An employee, whose duties are related to the maintenance of the residence premises, is defined as which of the following under Section II of the Homeowners Policy?

Residence Employee

In respect to Section II of a Homeowners Policy, all of the following are true, except:

Section II losses are subject to a standard $250 deductible

All of the following are true of a Homeowners Policy, except:

Section II provides coverage for damage to the insured's property

Which of the following statements is false concerning Section II of a Homeowners Policy?

Section II provides no defense in the event of a groundless, false, or fraudulent claim

Which statement is false concerning a Homeowners Policy?

The HO-4 covers the dwelling against the Broad Form Perils

Choose the answer that is true regarding the Homeowner HO-4 and HO-6 Forms.

The HO-4 is used to insure the personal property and personal liability of the insured, but does not include the structure itself

Under Section II of the Homeowners Policy, a one or two family dwelling where the insured resides in one of the units, including other structures and grounds at that location, is defined as:

The Residence Premises

Which of the following is true regarding the HO-3 (Special Form)?

The dwelling and other structures (Coverages A and B) are written on an open perils basis

Which of the following is true regarding eligibility of a Homeowners Policy?

The dwelling must be the principal residence of the insured

Coverage A under the Homeowners Policy includes coverage for which of the following?

The dwelling on the insured premises, plus any structures that are attached to the dwelling

In addition to the named insured in a property policy, coverage is automatically provided for:

The insured's spouse

Under Coverage A of the Homeowners Policy, all of the following are covered, except:

The land on which the dwelling is located

Which of the following best describes the Debris Removal coverage under the Homeowners policy?

The policy will pay the insured for removing debris from a covered loss

Under Coverage B of a Homeowners Policy, all of the following are included, except:

The renting of a garage to a neighbor for a woodworking business

Homeowners policies cover:

Theft of furs and jewelry up to $1,500

All of the following are true of a Homeowners Policy, Coverage F, except:

Under Coverage F, payments apply to necessary medical expenses incurred within a maximum of 1 year

Insured locations under a Homeowners Policy might include all of the following, except:

Vacant farm land

Choose the statement that best describes when one would purchase an HO-8?

When insuring an older home that might create a moral hazard when insurance is written at Replacement Cost

Policyholder S has an HO-5 policy with a $250,000 Coverage A limit. After a strong wind blows a mailbox into S's front picture window, causing $2,500 damage, S immediately buys $250 of wood and plastic sheeting to cover the damaged window and prevent further damage. How much will S's policy pay?

$2,750

Policyholder C's debit card is stolen, and $1,000 is subsequently stolen from his account. How much will his HO-3 pay for the loss?

$500

Under a Homeowners Policy, how much coverage is provided for theft or unauthorized use of a credit card?

$500

Which of the following claims would not be covered under Section II of a Homeowners Policy?

$500 a day for the insured's loss of earnings while defending a suit

L owns a home covered under an HO-3 for $200,000. Under Coverage D, how much coverage does L have for lost income if his basement apartment becomes uninhabitable due to a fire loss?

$60,000 30% of Coverage A

Which of the following is eligible to receive medical payments under Section II of a Homeowners Policy?

A residence employee

Liability for use of which of the following vehicles is not covered by the Homeowners policy?

Dune buggy used on a public beach

Choose the false statement regarding the coverage of property under a Homeowners Policy.

Money is covered up to $500 per occurrence

The Watercraft Liability endorsement provides which coverage?

Property damage arising out of the racing of sailing vessels

Which of the following would not be covered under Section II of the Homeowners Policy?

Property damage to property owned by an insured

Under Coverage C of a Homeowners Policy, all of the following losses are included, except:

Property of a roomer, boarder or tenant

All of the following are covered under Section II of the Homeowners Policy, except:

Property of the insured

Which statement is true concerning Homeowners policies?

Property usually located in a student dormitory is limited to 10% of Coverage C or $1,000, whichever is greater

Choose the true statement concerning Homeowners Policies.

The Section I deductible does not apply to property covered under the Scheduled Personal Property Endorsement

Which statement is true concerning Homeowners policies?

The Section I deductible does not apply to property covered under the Scheduled Personal Property Endorsement

Under a Homeowners Policy, Coverage A includes coverage for:

The dwelling on the premises plus structures that are attached to the dwelling

Which of the following would not be an insured under Section II of the Homeowners Policy?

The insured's tenant

Which person is not a covered resident under the Homeowners Policy?

The insured's tenant

Which of the following special limits of liability is provided under Coverage C?

Theft of furs are covered up to $1,500

Which of the following is true regarding the HO-4 and HO-6 forms?

They are used to insure the personal property and personal liability of the insured, but do not include the structure itself