Unit 6 Checkpoint

Which of the following comes closest to expressing the insurance protection Coverage E provides? A) Additional living expenses coverage B) Liability coverage C) Medical payments coverage D) Detached structures coverage

A) Additional living expenses coverage

William and Joan need to purchase dwelling insurance for their vacation home. They want to insure the dwelling itself and their personal property in the vacation home. Which of the following coverages should they purchase? A) Coverages A and C B) Coverages A and B C) Coverages B and C D) Coverages A and D

A) Coverages A and C

Which of the following covered perils forms is the most inclusive? A) DP-3 B) DP-1 C) DP-4 D) DP-2

A) DP-3

Clint has a DP-1 policy and chooses not to add on any extended coverage for an additional premium. Which of the following perils would NOT be covered in his policy? A) Explosion B) Lightning C) Internal explosion D) Fire

A) Explosion

Which of the following statements about dwelling insurance is NOT correct? A) Like homeowners insurance, dwelling insurance automatically includes liability coverage. B) Dwelling insurance does not require the home be owner occupied C) Dwelling insurance covers risks like rental property, older homes, and hunting cabins D) Dwelling insurance is unique from the homeowners policy.

A) Like homeowners insurance, dwelling insurance automatically includes liability coverage.

Under Coverage M--medical payments to others, which of the following statements is INCORRECT? A) The insurer will pay all necessary medical expenses incurred within 2 years of an accident. B) Injuries sustained by the insured or the insured's family members are not covered. C) The minimum limit is $1,000 per person. D) Injuries sustained by the injured party while on the insured's property with permission are covered.

A) The insurer will pay all necessary medical expenses incurred within 2 years of an accident.

According to the loss settlement condition in the DP-2 and DP-3, as long as the insured carries insurance equal to 80% or more of the full replacement cost of the building at the time of loss, the loss to the dwelling or other structures will be paid on A) a replacement cost basis B) an actual cash value basis C) a depreciation value basis D) a market value basis

A) a replacement cost basis

All of the following statements about Coverage C-personal property are true EXCEPT A) if the property is a rental, the tenant's property is covered B) rowboats and canoes are covered C) animals, including birds and fish, are not covered D) personal property belonging to guests may be covered at the insured's request

A) if the property is a rental, the tenant's property is covered

All of the following statements about the residential theft coverage endorsement are true EXCEPT A) The broad theft and limited theft endorsement provides coverage for theft, attempted theft, and vandalism. B) The broad their endorsement is available for dwellings that are not owner occupied. C) The broad theft endorsement covers property on and off the premise. D) The broad theft endorsement is available to owner-occupied dwellings.

B) The broad their endorsement is available for dwellings that are not owner occupied.

Which of the following loss conditions gives the insurer the right to repair or replace the damaged property with material or property of like kind within 30 days of the insured's statement of loss? A) The recovered property condition B) The our option condition C) The loss settlement condition D) The loss payment condition

B) The our option condition

Which of the following losses is covered in the covered perils-broad form? A) The weight of ice and snow damages the insureds swimming pool and foundation. B) A dock is damaged after a storm that produced sleet and snow C) A fallen tree limb destroys the insureds roof. D) A dwelling is vacant for 90 days and has major damage after a burglary.

C) A fallen tree limb destroys the insureds roof.

Which of the following is covered in the DP-1-dwelling basic form? A) Trees, shrubs, and other plants B) Collapse C) Fire department service charge D) Property removed for up to 30 days

C) Fire department service charge

Which of the following is NOT excluded in all dwelling policies? A) Loss due to power interruption that occurred away from the insureds location B) Loss resulting from a flood C) Loss resulting from the freezing of plumbing D) Loss resulting from earthquakes

C) Loss resulting from the freezing of plumbing

Personal liability and medical payments to others coverage includes all of the following additional coverages EXCEPT A) claim expenses B) damage to property of others C) damage to property of the insured D) first aid to others

C) damage to property of the insured

Which of the following statements regarding other endorsements that may be used in a dwelling policy is NOT correct? A) in the automatic increase insurance endorsement, annual increases in Coverage A and B are 4%, 6%, or 8% B) in the dwelling under construction endorsement, the available policy limit increases as construction on the nome progresses C) in the dwelling under construction endorsement, the available policy limit decreases as construction on the home progresses. D) The mobile home endorsement requires the mobile home to be on a permanent foundation

C) in the dwelling under construction endorsement, the available policy limit decreases as construction on the home progresses.

Under the DP-1-dwelling basic form, property that is removed from the premises to protect it against loss is covered for how many days? A) 45 days B) 60 days C) 30 days D) 5 days

D) 5 days

Which of the following losses is NOT excluded by Coverage L? A) Damage to property owned by the insured B) Losses covered under workers' compensation laws C) Transmission of a communicable disease by the insured D) Court costs charged against an insured in any suit the insurer defends

D) Court costs charged against an insured in any suit the insurer defends

Which of the following properties would not be eligible for coverage under a dwelling policy? A) Dwellings with four units in which each unit may accommodate renters B) Permanentlv located mobile homes C) Dwellings under construction D) Dwellings with six units that may be used as rental property

D) Dwellings with six units that may be used as rental property