Homeowners & Dwellings
The theft limit under HO-8 is: (A) $1,000 (B) $2,500 (C) $5,000 (D) The coverage C limit
(A) $1,000
The minimum basic limits for Personal Liability are: (A) $100,00 liability/$1,000 Med Pay (B) $25,000 liability/$1,000 Med Pay (C) $100,000 liability/$500 Med Pay (D) $25,000 liability/$500 Med Pay
(A) $100,00 liability/$1,000 Med Pay
Ari has a Dwelling Policy Broad Form with a Coverage A limit of $100,000. He incurs a covered building loss which has an actual cash value of $30,000 and a replacement of $40,000. If the value of his dwelling at the time of loss is $120,000, how much will he recover ignoring deductible? (A) $40,000 (B) $32,000 (C) $30,000 (D) $24,000
(A) $40,000 (Replacement cost paid if insurance is 80% to value)
Standard deductible for DPs is: (A) $500 All perils except hurricane - $500 minimum - 2% - 10% maximum for hurricanes (B) $500 All perils except hurricane - $1,000 minimum - 10% maximum (C) $1,000 All perils (D) 2% - 5% All perils
(A) $500 All perils except hurricane - $500 minimum - 2% - 10% maximum for hurricanes
Lightning fells a tree on insured's premises. How would the tree be covered under Homeowners Policy? (A) $500 per tree under 'trees, shrubs & other plants' (B) $250 per tree removal (C) $1,000 per tree (D) No coverage for trees under Homeowners
(A) $500 per tree under 'trees, shrubs & other plants'
What is the limit of Coverage D on Homeowners Form 3? (A) 30% of A (B) 20% of C (C) 40% of C (D) 10% of A
(A) 30% of A
Jimmy asks if his insurance covers earthquakes, landslides, mudslides, mudflows, and floods. All of the following are true statements EXCEPT: (A) A standard earthquake policy will cover earthquakes and landslides (B) NFIP Flood insurance will cover floods and mudflows, but not mudslides (C) A difference in condition (DIC) policy can cover all of these perils (D) Jimmy can purchase a landslide policy to cover the peril of landslides
(A) A standard earthquake policy will cover earthquakes and landslides (An earthquake policy only covers earth movement caused by earthquakes. Either an earthquake policy with a separate landslide policy, or a DIC policy would be required to cover both perils. Additional note: mudflow is primarily liquid that has picked up dirt. Mudslide is movement of wet earth, and is not covered by NFIP flood policies)
Mrs. Dorfelton has her home insured with an HO-3. Rats chew through pipes under crawl space, causing considerable damage to the plumbing system. Which of the following statements is accurate? (A) Damage caused by rats is excluded (B) Plumbing is not covered property under the policy (C) Anything below the floor is excluded from coverage (D) The loss will be covered within the policy limits
(A) Damage caused by rats is excluded (Damage caused by birds, vermin, rodents or insects is specifically excluded from coverage. The only exception would be if the house collapsed due to unseen damage from the rats which is not the case here)
All of the following Special Limits under HO policies may be increased as shown EXCEPT: (A) Firearms $2,500 to $10,000 (B) Business Property $2,500 to $10,000 (C) Credit Cards, Forgery, Counterfeit Money $500 to $10,000 (D) Money - $200 to $1,000
(A) Firearms $2,500 to $10,000 (On a standard policy, the limit for theft of firearms is increasable to $6,500, not $10,000)
All of the following are insured locations under Section II Homeowners Insurance EXCEPT: (A) Insured's office (B) Cemetery plot (C) Vacant land owned by or rented to insured (D) Family dwelling being constructed for insured's company
(A) Insured's office
Which of the following is not covered property under a Dwelling policy? (A) Land (B) Contents (C) Nearby structures such as sheds (C) Plumbing
(A) Land (Land is never covered on a DP)
A Dwelling Policy Basic Form can be characterized as: (A) Limited named perils/a=ACV (B) Limited named perils/Replacement Cost (C) Broad named Perils/ACV (D) Broad named perils/Replacement Cost
(A) Limited named perils/a=ACV
Ms. Jones calls her insurance company to report termite damage to her house. She has a HO-3. What will the company adjuster likely tell her? (A) No coverage for termite damage (B) Covered (C) Covered if the damage is less than 10 days old (D) Damage to the building is covered, but damage to personal property is not
(A) No coverage for termite damage (Damage caused by insects is excluded)
Mary and Joe Smith are buying a home under contract, paying rent until they acquire title. Are they eligible for a Homeowners Policy? (A) Yes, if other eligibility requirements are met (B) Yes, but only for an HO-4 (C) No, policy may only be in the seller's name (D) Only eligible for a Dwelling Policy
(A) Yes, if other eligibility requirements are met
John Jones is building a new home. Is he eligible for Homeowners Insurance on the new home while it is under construction? (A) Yes, if otherwise eligible (B) Yes, if endorsed (C) No, specifically ineligible (D) No, coverage is excluded in policy
(A) Yes, if otherwise eligible
John Ryan rents his condo to his girlfriend. Is he eligible for Homeowners Insurance on the condo? (A) Yes, if otherwise eligible (B) Yes, if endorsed (C) No, specifically ineligible (D) No, coverage is excluded in policy
(A) Yes, if otherwise eligible
Insured has HO-3 Coverage A in amount of $100,000. Due to a careless smoker a trash basket full of junk mail catches fire. Resulting damage is: Smoke damage to paint, wallpaper ... $1,000. Tropical fish tank overheats, breaks open ... $500. Valuable fish die from lack of water. Cost new ... $1,000. Cost today ... $1,500. Insured's wife, sad from loss of fish, takes ski trip to Colorado ... $5,000. Insured has standard $500 deductible; he will collect: (A) Nothing (B) $1,000 (C) $2,250 (D) $2,750
(B) $1,000 (The policy will pay for the paint, wallpaper and fish tank, less the $500 deductible)
The basic limits for loss assessments in HO - Section I and II are: (A) $1,000 in I and $5,000 in II (B) $1,000 in each (C) $1,000 in II only. Not in Section I (D) Set by the insured for both
(B) $1,000 in each
Insured under HO-3 has invited a client to play golf while they discuss a major sale insured hopes to make to client. Insured, making a practice swing breaks the clients leg. Client sues. Judgement $75,000. Defense cost $35,000. HO-3 has basic limit of Section II Policy will pay: (A) Nothing - business (B) $110,000 - not excluded (C) $100,000 - policy limit (D) $110,000 plus the lost sale amount
(B) $110,000 - not excluded
Under the Dwelling Policy Basic Form an insured has the dwelling insured for $80,000. There is also a detached garage. If both structures are totally destroyed by a covered peril, how much will the policy pay? The replacement cost of the dwelling is $78,000 and the detached garage is $10,000. (A) $78,000 (B) $80,000 (C) $86,000 (D) $88,000
(B) $80,000 (The Florida Valued Policy Law applies. Other Coverage - Other Structures 10% of A is NOT additional for DP-1)
All of the following would be eligible for the Dwelling program EXCEPT: (A) Dwelling owned by a corporation (B) 5-6 family dwellings (C) Dwelling rented to others (D) Dwellings owned by Trusts and Estates
(B) 5-6 family dwellings
Vandalism and Malicious Mischief (VNM) coverage in the DP-3 is suspended by how many days vacancy? (A) 30 days (B) 60 days (C) 90 days (D) 120 days
(B) 60 days
Ms. S has just rented a mobile home in a mobile home park. She needs: (A) An HO-2 or HO3 with the Mobilehome endorsement (B) An HO-4 (C) An auto policy, since the home is mobile (D) A certified of insurance from the landlord proving that the mobile home is covered
(B) An HO-4 (Renting a mobile home is like renting any other home. Contents and personal liability can be covered using HO-4)
Damage caused by weight of ice on a rood is covered under which policies? (A) DP-1, DP-2, and DP-3 (B) DP-2 and DP-3 only (C) DP-3 only (D) None of these
(B) DP-2 and DP-3 only (Weight of ice is a broad form peril, and not excluded from open perils)
Insured has HO-5 Comprehensive Form. Which of the following requires a separate policy if the insured wants coverage: (A) House falls into sinkhole (B) House damaged by earthquake (C) Meteor falls on house (D) Insured accidentally shoots television
(B) House damaged by earthquake (Earthquake is excluded on HO policies. All others are covered under open perils on the HO-5)
All of the following are excluded forms of property under Coverage C - Personal Property in a Homeowners EXCEPT: (A) Specifically insured articles (B) Model or hobby aircraft (C) Animals, birds, or fish (D) Tape decks, CB radios, tapes while in a motor vehicle
(B) Model or hobby aircraft
Chuck Jones and his Wife Honey co-own a two family dwelling with Chuck's cousin Buford Jones. How would their Homeowners Insurance be issued? (A) Dwelling not eligible with this ownership (B) Write HO-2 or 3 on one and HO-4 on the other (C) Write HO-4 for both (D) Insure only with Dwelling Policy
(B) Write HO-2 or 3 on one and HO-4 on the other
To be eligible for Flood Insurance, a building must have all of the following EXCEPT: (A) walls and roof (B) storm windows (C) 50% above ground (D) be in eligible community
(B) storm windows
Insured has HO-3 - Standard Deductible - $100,000 Coverage A. Fire department has to come into rural area to put out fire at insured's home. They bill insured $975 because fire was outside their district. His policy will pay: (A) $975 (B) $725 (C) $500 (D) Nothing unless endorsed
(C) $500
All of the following are options for HO - Sections I EXCEPT: (A) Jewelry, furs, golf, equipment insured all risk with no deductible (B) Theft coverage when residence temporarily rented (C) 10% of Coverage A additional amount for building ordinances or laws (D) Coverage C changed to all risk on form HO-3
(C) 10% of Coverage A additional amount for building ordinances or laws (10% Ordinance and Law coverage would be built into a standard Homeowners, so it is not an 'option'. Companies that wish to exclude Ordinance and Law in the absence of an endorsement must file a variant with the Department)
All of the following would eligible for a Homeowners EXCEPT: (A) A dwelling under construction (B) A renter of an apartment in a building that has commercial occupancy also (C) A single family dwelling owned by a corporation (D) Owner-occupant of a two story duplex
(C) A single family dwelling owned by a corporation
Which of the following is a peril covered by an HO-2 or DP-2 but not an HO-8 or DP-1? (A) Smoke (B) Vehicle damaging the building (C) Collapse (D) Explosion
(C) Collapse (Collapse of the structure is covered on an HO-2 or better and DP-2 or better)
All of the following are covered under Section II Homeowners Policy EXCEPT: (A) Insured's golf cart, on golf course (B) Insured's riding lawn mower (C) Insured's motor home (D) Insured's stationary trailer
(C) Insured's motor home
Insured has HO-3 and Flood insurance. Which of the following is not covered on either policy? (A) Tidal wave carries house into the Atlantic Ocean (B) Shed on property collapses under the weight of heavy rain (C) Landslide during dry weather spell moves the house onto neighbor's property (D) Roof burned when insured's child starts bonfire next to house
(C) Landslide during dry weather spell moves the house onto neighbor's property (Landslide and earth movement other than catastrophic ground cover collapse are excluded from HO policies)
The policy provision that gives the insured benefit for any broadened coverage in a new form issued within 45 days of inception of the current policy at no premium increase is called: (A) Demurrage (B) Coverage Extension (C) Liberalization (D) Subrogation
(C) Liberalization
B&B Corporation owns a dwelling for entertaining clients. Is B&B eligible for Homeowners Insurance on this dwelling? (A) Yes, if otherwise eligible (B) Yes, if endorsed (C) No, specifically ineligible (D) No, coverage is excluded in policy
(C) No, specifically ineligible
A mobile home policy generally does not include coverage for: (A) Coverage B Other Structures (B) Sinkhole of Catastrophic Ground Coverage Collapse (C) Ordinance or Law (D) Coverage D Loss of Use
(C) Ordinance or Law (The standard Mobilehome endorsement removes Ordinances or Law coverage from the policy)
The Homeowners coverage that covers appurtenant structures such as detached garage, guest house, fence, tennis court or storage building is called: (A) Personal Property (B) Dwelling (C) Other Structures (D) Removal
(C) Other Structures
What is the standard deductible for hurricane in beach area of Florida lower East coast? (A) $250 flat deductible (B) $500 minimum - 3% maximum (C) Percentage of value of the property (D) 100% of loss unless amount of loss is $5,000
(C) Percentage of value of the property
Which of the following is covered property under a Homeowners policy? (A) Land (B) Settling of the foundation (C) The swimming pool (D) The insured's show dogs
(C) The swimming pool (Swimming pools are covered under either Coverage A or Coverage B, depending on whether they are part of the dwelling)
All of the following would require a separate policy in addition to an HO-2 EXCEPT: (A) Mudflow (B) Landslide (C) Volcanic eruption (D) Earthquake
(C) Volcanic eruption (Volcanic action is one of the 'Vs' in WCSHAVER. Note however that earthquake or seismic activity caused by a volcano would still be excluded; earthquake insurance or DIC would be required to cover those)
The dwelling form of Flood coverage covers detached garages: (A) under a separate policy (B) for 10% of the dwelling amount as additional insurance (C) for 10% of the dwelling amount within the dwelling limit (D) detached garages are not eligible
(C) for 10% of the dwelling amount within the dwelling limit
For contents to be covered by a Flood Policy the requirements are all EXCEPT: (A) be in an eligible building (B) be tied down if building open sided (C) not be in the basement (D) building in eligible community
(C) not be in the basement (Property necessary for maintenance and service of building is covered if in basement)
An insured has an HO-3. If fire damages the association club house which results in a $700 assessment against the insured, her HO-3 will: (A) not pay because loss assessment is only in Section II (B) pay $500 (C) pay $700 (D) not pay because loss assessment is only in the HO-6
(C) pay $700
If a flood of a single premises is to be covered, the flood must inundate: (A) the dwelling only (B) an acre of land (C) two acres (D) there is no area requirement
(C) two acres
Under HO policies the limit on computers and cellular phone used in business is what amount when off premises: (A) $250 (B) $500 (C) $750 (D) $1,500
(D) $1,500
What are the basic limits under Section II of a Homeowners Policy? (A) $15,000 per occurrences/$250 Med Pay (B) $25,000 per occurrences/ $500 Med Pay (C) $1000,000 per occurrences/$500 Med Pay (D) $100,000 per occurrences/$1,000 Med Pay
(D) $100,000 per occurrences/$1,000 Med Pay
Mr. E has an HO-2 with a standard Mobilehome endorsement. He has the entire home moved and then brought back to save it from hurricane damage. How much coverage does his policy provide for the cost of removal and return? (A) Any amount within the policy limits (B) $250 (C) $2,500 (D) $500
(D) $500 (The standard Mobilehome endorsement affords $500 for moving and returning the home to save it from a covered peril)
Broad Form Dwelling Policies (DP-2) limit coverage for shrubs; trees and plants to: (A) $250 each/not additional insurance (B) $250 each/additional insurance (C) $500 each/not additional insurance (D) $500 each/additional insurance
(D) $500 each/additional insurance
Jim and Betty bought their two kids a computer on which to do homework, etc. Jim brings his business computer home from the office. While the family is out, theives take both computers. Kids' computer value ... $4,000. Dad's computer value ... $3,000. Coverage A limit ids 350,000. Ignoring deductible, the policy will pay (A) Nothing - excluded property (B) $7,000 - covered property (C) $5,000 - $2,500 max on PC's (D) $6,500 - $2,500 max on Dad's PC; no max on kids
(D) $6,500 - $2,500 max on Dad's PC; no max on kids
Personal Liability covers those in CCC of insured if under: (A) 12 years old (B) 15 years old (C) 18 years old (D) 21 years old
(D) 21 years old
Which coverage listed below is found in a DP-1? (A) Other Structures (B) Personal Property (C) Fair Rental Value (D) Additional Living Expenses
(D) Additional Living Expenses
HO-6 insured is worried about assessments by his Associations. He can increase 'Loss Assessments' coverage to: (A) $1,000 (B) $2,500 (C) $10,000 (D) Any amount needed
(D) Any amount needed
All of the following would be covered under Section II of a Homeowners Policy EXCEPT: (A) 24 foot sailboat owned by the insured (B) 80 hp outboard purchased six months after policy renewal (C) 40 hp inboard-outboard rented to the insured (D) Go cart driven on sidewalk in insured's neighborhood
(D) Go cart driven on sidewalk in insured's neighborhood
Correct 'Additional Coverages' in Section 11 Homeowners are all EXCEPT: (A) Claim expenses (B) First aid expenses (C) Damage to Property of Others - $1,000 (D) Loss Assessment - $5,000
(D) Loss Assessment - $5,000 (The correct amount of Loss Assessment coverage is $1,000)
Each of the following is a difference between Personal Liability and Section II Liability in HO's EXCEPT: (A) No built in Loss Assessment coverage (B) No Farm Exposure option (C) No Personal Injury option (D) No Damage to Property of Other coverage
(D) No Damage to Property of Other coverage (Damage to Property of Others is covered on both policy forms)
All of the following Special Limits under HO policies may be increased as shown EXCEPT: (A) Money from $200 to $1,000 (B) Securities from $1,500 to $2,000 (C) Jewelry & Furs from $1,500 to $5,000 (D) Silverware, goldware from $2,500 to $25,000
(D) Silverware, goldware from $2,500 to $25,000 (On a standard policy silverware and goldware can be increased to $10,000, not $25,000)
All of the following are covered under insureds HO policy - Section II EXCEPT: (A) Newly acquired secondary residence (B) Vacant lot at seahorse used for beach access - owned by insured (C) Vacant lot at seahorse as above - rented to insured (D) Vacant land on which insured plans to raise cattle
(D) Vacant land on which insured plans to raise cattle
Insured has HO-3 Special Form. Which of the following is covered: (A) Landslide causes house to roll down hill and break apart (B) Foundation cracks due to faculty construction (C) Homeowners accidentally shoots television (D) Volcano forms near house, which is destroyed by lava
(D) Volcano forms near house, which is destroyed by lava (Volcanic eruption is a basic peril. The television would only be covered if the policy had open perils coverage for contents. Earth movement and foundation are both exclusion)
Under an HO-3, an insured will receive full replacement cost coverage on a loss to the dwelling if: (A) the insured complies with the coinsurance percentage selected (B) the limit of the coverage is greater than the loss (C) the limit of coverage is greater than 80% of the loss (D) the insured carries a limit equal to or grater than 80% of the replacement cost of the dwelling
(D) the insured carries a limit equal to or grater than 80% of the replacement cost of the dwelling
Flood Coverage applies on an ACV basis unless: (A) the Replacement Cost option is purchased (B) the insured carries insurance equal to or greater than 75% of Replacement Cost (C) rebuilds within a reasonable time (D) the insured resides in the residence at least 80% of the time
(D) the insured resides in the residence at least 80% of the time
