Personal Watercraft Coverage

Coverage C of the Homeowner policy covers ______ on watercraft, including their trailers, furnishings, equipment and outboard motors. A. $1,500 B. $500 C. $5,000 D. $250

A. Coverage C (Personal Property) of the Homeowner policy covers $1,500 on watercraft, including their trailers, furnishings, equipment and outboard motors.

How are losses evaluated for payment under the Watercraft and Yacht policies? A. Agreed amount value B. Functional replacement cost C. Actual cash value at the time of the loss D. Replacement cost value at the time of the loss

C. Losses are evaluated on an "actual cash" value at the time of the loss.

Mr. Cato carries a Watercraft policy covering his 25 foot pontoon boat. The boat is powered by a 150 hp motor. He transports it to the Florida Keys and operates the craft 20 miles out to sea. The boat capsizes and is destroyed. What coverage would apply to the boat? A. The ACV value of boat B. The motor and accessories only C. Damage to the hull only D. No coverage would apply

D. No coverage would apply to the boat because the insured went outside the territorial limit of 12 miles.

Under the Yacht Policy, what coverage must be added to cover bodily injuries to the captain and crew? A. Medical payment coverage B. Uninsured/underinsured boater insurance C. Bodily injury liability coverage D. Jones Act coverage for the members of the crew

D. Protection and Indemnity coverage would apply to obtain coverage under the Jones Act.

If a named insured acquires additional property after the policy period begins, that property is covered for a maximum of ____ days after the date it came into the insured's possession. A. 4 B. 10 C. 14 D. 18

C. The coverage applies for 14 days.

Medical payments coverage of a Watercraft policy covers all necessary medical expenses incurred by a covered person up to ______ following a covered accident. A. 1 year B. 6 months C. 5 years D. 3 years

D. Coverage C (Medical Expense) of the Watercraft policy covers all necessary medical expenses incurred by a covered person up to three years following a covered accident.

The insured is covered under a Watercraft policy and asks the agent about a "lay-up" period credit to get a reduction in the premium. The dates of the lay-up period are specified in the policy. There is an emergency and the insured must use his boat in a life saving event. The boat is damaged and sinks. Under what circumstances would coverage apply? A. The loss would not be covered because the insured operated the boat during the "lay-up" period B. Only if the insurance company is notified within 10-days of the emergency use. C. Only the salvage of the boat is covered when required under Maritime Law D. When an additional premium is received by the insurer when the limitation is removed

B. The company must be given notice within 10 days of the emergency to justify the need to violate the terms of the provision.

The insured carries a Yacht Policy and is pulling a water skier. The skier is a family member and is injured. What coverage might apply to this accident? A. No coverage would apply B. Liability coverage and defense coverage would apply C. Medical payments coverage D. Only the injured party's health insurance would cover the claim

C. Medical payments coverage under the yacht policy would cover this loss up to its specified limit.

The insured owns a 20 foot fishing boat with a 50 horsepower motor. Which of the following policies would be best suited to cover a theft loss on a lake? A. Homeowner policy B. Personal Article Floater C. Watercraft policy D. Yacht policy

C. The Watercraft policy would be the better product to cover a fresh water boat of this size and horsepower. The Homeowner policy has a limitation for physical damage coverage and does not cover the theft of a boat off the insured's premises. Also, the HO policy would not cover the liability of an outboard motor of more than 25 horsepower.

The insured is transporting his yacht on its trailer and pulling it with his truck. The trailer separates from the truck hitch and the boat strikes another vehicle. There is property damage and bodily injury to a third party. The yacht and trailer are a total loss. What coverage would apply under the Yacht Policy? A. All the damages would be covered B. Only the third party damages would be covered C. Only the damage to the yacht and trailer D. None of the damages are covered

C. The damage to the yacht and trailer would be covered. The bodily injury and property damage to a third party would be covered under an auto policy.