Quiz other coverages and options

The regular National Flood Insurance Program would insure an eligible single-family dwelling for up to? (how much)

$250,000

Johanna purchased a National Flood Insurance policy 10 days after her community entered an emergency program. When would her coverage be effective?

12:01 am the next day after the application and premium payment are mailed

How long is a waiting period upon purchase of flood coverage through NFIP?

30 days

When Mary decided to sue her neighbor for damages to her yard, she was told to get a bond that would guarantee she would be able to pay court costs and resulting damages if she loses the case. What kind of bond is this?

A cost bond

An individual has started a construction business and plans to specialize in remodeling and rewiring residential properties. Because the city where he is located and where he plans to operate the business has building codes, he will need to obtain a?

License and permit bond

Ro/ro ships are used to transport?

Motor vehicles

Who are the parties to a bond?

Principal, obligee, and guarantor

The party to a surety or fidelity bond who promises to fulfill the obligation is the?

Principle (purchases the bond and promises to perform)

In a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverage is?

Self insured retention

What is the deductible of a personal liability umbrella policy called?

The SIR (self insured retention)

In order for a Protection and Indemnity policy to cover a loss which of the following must be TRUE?

The insured must be legally liable for the loss

A fly around commercial airplane is taxiing on the approach to the runway when a tire blows. The underside of the airplane is damaged. The airplane is insured by an All-Risks- Ground and Flight Aircraft Hull Policy. Which of the following statements is true regarding this loss?

The loss is covered because the All-Risks - Ground and Flight Aircraft Hull covers losses while the airplane is on the ground and while it is in flight.

Which bond is required by a court before allowing one to take the assets of another to satisfy a legal obligation?

Attachment bond

If an insured has an umbrella liability policy in addition to his personal auto policy, which would be considered the underlying policy?

Auto policy

A professional who wants coverage for all liability exposures should purchase what form of liability insurance?

Commercial general and professional