Property Wrong Answers Redo

Vandals paint graffiti on the garage door of a house. Which dwelling form(s) cover this loss?

DP 2 and 3; coverage is optional in the DP 1

All of the following are elements of negligence EXCEPT:

intent

Tim rents a dwelling and buys standard flood insurance on his personal property with a coverage limit of $50,000. He improves the dwelling by installing new cabinets and flooring in the kitchen at a cost of $11,000. How much coverage would he have if the improvements were damaged by a flood?

$5,000

Which of the following causes of loss would typically be covered under a standard property insurance policy?

tornado

How is personal liability coverage provided on a dwelling fire policy?

It can only be provided by endorsement.

Valerie's home is insured on a dwelling policy. It is destroyed when it falls into a sinkhole. How does Valerie's insurer respond when she submits a claim for damage to the building?

It denies her claim per the earth movement exclusion.

Which of the following persons would not qualify for a temporary agent's license in Georgia?

Part-time agent of a licensed agency

Which of the following statements correctly describes the BOP coverage extension, Newly Acquired Property, that applies to the purchase of a second building by the insured?

The coverage extension provides $250,000 of building coverage and $100,000 of business personal property coverage.

If a lost or stolen piece of property is recovered after the insurer paid a $10,000 claim, which of the following statements correctly describes the options available to the insured?

The insured may either keep the recovered property and accept a readjustment of the claim payment or keep the $10,000 payment and allow the insurer to keep the recovered property.

Manuel has a DP 1 basic form dwelling policy on his residence. During a storm, the residence is struck by lightning, causing damage to the dwelling and personal property within it. Which statement is correct about the policy's coverage in this situation?

The loss is adjusted on an actual cash value basis for both the dwelling and the personal property.

All of the following are eligible for coverage under an equipment breakdown policy EXCEPT:

a business's plumbing system

Damage to a swimming pool will be settled on what basis under an unendorsed homeowners policy?

actual cash value

Which type of agent authority is not intended by the insurer but appears to be granted by the insurer based on the producer's actions or statements?

apparent authority

Ivy fails to comply with a number of the Duties after an Occurrence listed in the conditions section of her homeowners insurance policy. If Ivy's failure impedes the insurer's processing of a claim, what may the insurer do?

deny Ivy's claim

The DP 2 Broad form of the dwelling policy covers all the following perils EXCEPT:

earth movement

Which type of agent authority is not explicitly covered in an agency agreement but is commonly understood to be a part of a producer's job?

implied authority

Julius owns an expensive mink coat and carries a personal articles standard loss settlement form to provide additional coverage over that provided in his homeowners policy. If the coat sustains a covered loss, how will the loss be settled?

on the cost to repair or replace, ACV, or applicable policy limit, whichever is lowest

Larry submitted a claim under his homeowners insurance policy. The insurance company has the burden of proof to show that the loss is excluded; otherwise, it must pay Larry's claim. On what type of perils is Larry's policy based?

open perils

Tumbleweed Tim travels around the United States singing country music and playing his guitar free of charge. Occasionally, he offers private lessons for a fee and sometimes accepts payment for his performances. Tim buys a personal articles floater to insure his guitar. His insurance agent advises him that he should also, for an extra premium, buy a:

performance for pay coverage option

All of the following topics are covered in the common policy conditions form of a commercial property policy EXCEPT:

policy period

What are the two types of compensatory damages?

special and general

The valuation condition of the ISO commercial inland marine policy states property will be valued at the smallest of three amounts. Which of the following is NOT one of those amounts?

the market value of covered property

The products-completed operations aggregate limit of coverage under the businessowners policy (BOP) liability coverage form is equal to:

two times the liability and medical expenses limits