Dwelling Policy
An insured owns a large dog. The first day he has to leave the dog home alone to go to work, the insured comes back to find his $400 couch torn apart, his $100 coffee table chewed up, his $50 window curtain shredded, and a $200 window pane shattered where his dog jumped through. The insured has personal property coverage under a special form dwelling policy. How much of this loss will the policy cover? A $0 B $200 C $250 D $750
A $0 Correct! Damage that results from domestic animals is excluded under the special form dwelling policy.
An insured owns a large dog. The first day he has to leave the dog home alone to go to work, the insured comes back to find his $400 couch torn apart, his $100 coffee table chewed up, his $50 window curtain shredded, and a $200 window pane shattered where his dog jumped through. The insured has personal property coverage under a special form dwelling policy. How much of this loss will the policy cover? A $0 B $200 C $250 D $750
A $0 correct! Damage that results from domestic animals is excluded under the special form dwelling policy.
The broad theft coverage endorsement on the dwelling form specifies all of the following limitations EXCEPT A $1,000 on silverware. B $200 on money. C $1,500 on securities. D $1,500 on jewelry.
A $1,000 on silverware. correct! The limit on silverware is $2,500.
Chapter: Dwelling Policy Coverage for water backup or sump pump overflow is excluded from the Dwelling Policy. However, with the purchase of the water backup and sump pump overflow endorsement, coverage for up to $5,000 in loss or damage can be provided for an additional premium. What is the deductible associated with this coverage? A $250 B $300 C $350 D $200
A $250 Correct! Coverage for up to $5,000 in loss or damage, subject to a $250 deductible, can be provided for an additional premium with this endorsement.
Chapter: Dwelling Policy Under the additional living expenses coverage, if a civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's policy, loss would be covered for up to A 2 weeks. B 1 month. C 90 days. D 1 week.
A 2 weeks. correct! A dwelling policy will pay loss of use due to civil authority for a maximum of 2 weeks.
Under the dwelling policy, Coverage C - Personal Property is A Limited to covering a servant's property while at the insured location. B Automatically provided as 50% of Coverage A. C A prohibited coverage in the dwelling form. D Limited to 50% of the amount of insurance that is written as Coverage A.
A Limited to covering a servant's property while at the insured location. Correct! Dwelling Coverage C is limited to covering property owned by a guest or servant while the property is at the insured location. Under a homeowners policy, the property would be covered the same while on or off the premises.
Which of the following is NOT true concerning the fair rental value coverage provided in a dwelling policy? A Loss or expense caused by the cancellation of a lease is covered. B It pays for the loss of rent you would have collected less any expenses that would not have continued. C Coverage continues until repairs are completed. D The period of time to repair or replace is not limited by the expiration date of the policy.
A Loss or expense caused by the cancellation of a lease is covered. Correct! The cause for the property not being livable must be a covered peril.
The broad theft coverage endorsement on the dwelling form specifies all of the following limitations EXCEPT A $1,000 on silverware. B $200 on money. C $1,500 on securities. D $1,500 on jewelry.
A$1,000 on silverware. Correct! The limit on silverware is $2,500.
Within how many years of a loss may an insured bring a lawsuit against an insurer, according to dwelling policy? A 2 years B 3 years C 5 years D 7 years
A2 years correct! If an insured wants to bring a suit against an insurer, the insured must comply with all policy conditions and start action against the insurer within 2 years of the loss.
Which of the following would provide coverage for loss of income when an insured rental dwelling is rendered uninhabitable because of a covered loss? A Coverage C B Coverage D C Coverage A D Coverage B
B Coverage D Correct! Coverage D provides fair rental value coverage when insured rental dwellings suffer a loss covered by Coverage A, B, or C.
An insured's house is damaged by a fire and is uninhabitable. As a result, the insured has to rent an apartment until repairs are made. A dwelling insurance policy will pay for the expense of renting the apartment. Which type of broad or special form coverage does the insured have? A Coverage D - Fair Rental Value B Coverage E - Additional Living Expense C Coverage A - Dwelling D Coverage B - Other Structures
B Coverage E - Additional Living Expense correct! Coverage E is a broad or special form under the dwelling policy that pays for additional living expenses while the insured's dwelling is being repaired.
In dwelling policies, automatic increase in insurance is A Coverage for newly acquired property. B Coverage by endorsement. C Automatic coverage. D Coverage without additional premium.
B Coverage by endorsement. Correct! Automatic increase in insurance is an endorsement that may be added to a DP to increase the amount of insurance by an annual percentage to offset the effects of inflation. This endorsement requires additional premium.
Chapter: Dwelling Policy In dwelling policies, automatic increase in insurance is A Coverage for newly acquired property. B Coverage by endorsement. C Automatic coverage. D Coverage without additional premium.
B Coverage by endorsement. correct! Automatic increase in insurance is an endorsement that may be added to a DP to increase the amount of insurance by an annual percentage to offset the effects of inflation. This endorsement requires additional premium.
In dwelling policies, automatic increase in insurance is A Coverage for newly acquired property. B Coverage by endorsement. C Automatic coverage. D Coverage without additional premium.
B Coverage by endorsement. correct! Automatic increase in insurance is an endorsement that may be added to a DP to increase the amount of insurance by an annual percentage to offset the effects of inflation. This endorsement requires additional premium.
Which of the following additional perils is covered under both the basic form and broad form dwelling policies? A Freezing of plumbing, heating, or air conditioning systems B Internal explosion C Falling objects D Weight of ice, snow, or sleet
B Internal explosion Correct! Internal explosion is included in all forms.
Replacement cost coverage is provided in both the broad and special form dwelling policies when A The dwelling is insured for 100% of its replacement cost at the time of a loss. B The amount of insurance on the dwelling is at least 80% of its replacement cost at the time of loss. C The amount of insurance on both the dwelling and personal property is at least 80% of its replacement cost when the policy is written. D The amount of insurance on the dwelling is at least 90% of its replacement cost when the policy is written.
B The amount of insurance on the dwelling is at least 80% of its replacement cost at the time of loss. correct! It is always a requirement on property forms that provide replacement cost coverage that insurance on the dwelling be at least 80% of its replacement cost at the time of loss.
In which of the following situations would off-premises coverage in a broad theft endorsement apply? A The insured's vacuum cleaner is stolen from her apartment. B The insured's camera is stolen from his vacation home while he is there. C The insured's live-in maid's quarters are burglarized. D The insured's jewelry is stolen from her vacation home after she returns home.
B The insured's camera is stolen from his vacation home while he is there. Correct! Off-premises coverage through a broad theft endorsement covers property that is either owned or used by the insured when he or she is away from the described premises.
If an individual insures his dwelling and contents under a DP-3, he would be protected against loss by all of the following perils EXCEPT A Damage to the dwelling caused by burglars. B Theft of personal property located in the dwelling. C Damage caused by vandals. D Damage caused by the weight of ice, snow, or sleet.
B Theft of personal property located in the dwelling. Correct! Coverage C (Contents) is written on a named peril basis. Theft is not named as an insured peril.
All of the following are perils covered under the broad form dwelling policy EXCEPT A Collapse. B Theft. C Fire. D Lightning.
B Theft. Correct! Theft is not a peril named in the policy.
Both the broad theft and limited theft endorsements on the dwelling program exclude all of the following types of property EXCEPT A Aircraft. B Watercraft. C Credit cards. D Motor vehicles licensed for the road.
B Watercraft. correct! Canoes have limited coverage.
What is the maximum number of roomers or boarders for properties insured under the dwelling policy? A 2 B 3 C 5 D 6
C 5 Correct! Dwelling policies may insure a property that allows up to 5 roomers or boarders.
Chapter: Dwelling Policy A basic dwelling policy automatically provides coverage against fire, lightning, and A Riot. B Windstorm. C Internal explosion. D Smoke.
C Internal explosion. Correct! The other three perils are part of the extended coverages that may be added to the basic form for an additional premium.
If more than one person has an insurable interest in the property covered under a dwelling policy, A All involved insurers must decide which one will be liable for the loss. B All insureds must decide which one will be liable for the loss. C The insurer will be liable for only the insured's interest in the damaged property. D Liability will be split evenly among all people who have insurable interest.
C The insurer will be liable for only the insured's interest in the damaged property. Correct! If more than one person has an insurable interest in a property, the insurer will be liable only for the insured's interest in the loss.
Chapter: Dwelling Policy All of the following are perils covered under the broad form dwelling policy EXCEPT A Lightning. B Collapse. C Theft. D Fire.
C Theft. Correct! Theft is not a peril named in the policy.
Assuming the insurer and the insured agree to the amount payable for a loss covered under a dwelling policy, how soon after the insurer has received proof of loss must it make payment? A 30 days B 45 days C 60 days D 90 days
C60 days correct! After the insurer receives proof of loss, it has 60 days to pay for the loss.
All of the following are other coverages included in both the broad and special form dwelling policy EXCEPT A Collapse. B Breakage of glass. C Lawns, trees, shrubs, and plants. D Theft of personal property.
D Theft of personal property. correct! Theft of personal property only can be included by endorsement.
All of the following are other coverages under the dwelling policy EXCEPT A Other structures. B Debris removal. C Improvements, alterations, and additions. D Earth movement.
DEarth movement. Correct! Earth movement is not included in the other coverages of the dwelling policy.
How much is the premium for the dwelling under construction endorsement under the dwelling policy? A 75% of the gross premium B The full value of the house C 50% of the actual value premium D The average amount of insurance during construction
DThe average amount of insurance during construction correct! The premium is based on the average value of the house and building materials from the first day of construction until completion.
All of the following are other coverages included in both the broad and special form dwelling policy EXCEPT A Collapse. B Breakage of glass. C Lawns, trees, shrubs, and plants. D Theft of personal property.
DTheft of personal property. Correct! Theft of personal property only can be included by endorsement.
An insured has a special form dwelling policy written for $100,000 on a dwelling. The dwelling's replacement cost is $115,000. Fire causes $75,000 in damage to the dwelling, $15,000 damage to a separate garage, and kills 10 trees valued at $600 each. How much will the policy pay for the trees? A $5,000 B $10,000 C $60,000 D $75,000
A $5,000 Correct! In the broad and special form, Coverage B (Other Structures) is an additional amount of insurance, limited to 10% of Coverage A (in this example, $10,000). Trees, shrubs, and plants are covered, limited to not more the $500 for any one tree or plant, and not to exceed 5% of Coverage A in total (in this example, $5,000).
Within how many years of a loss may an insured bring a lawsuit against an insurer, according to dwelling policy? A 2 years B 3 years C 5 years D 7 years
A 2 years Correct! If an insured wants to bring a suit against an insurer, the insured must comply with all policy conditions and start action against the insurer within 2 years of the loss.
Chapter: Dwelling Policy If an insured is in the process of moving to a new location, his personal property coverage under the dwelling policy will apply on a pro rata basis at both locations for A 30 days. B 60 days. C 90 days. D 5 days.
A 30 days. Correct! Personal property being moved to a new location can be covered for up to 30 days without notice to the insurer.
The limited theft endorsement is intended for which type of property? A An apartment building in which the owner does not reside B A building used for commercial purposes in which the owner operates a business C A building used for commercial purposes which the owner rents to a business D A house in which the owner resides
A An apartment building in which the owner does not reside Correct! The limited theft endorsement is intended for property in which the owner does not reside.
If an insurer makes a change to broaden coverage in a dwelling policy while it is in effect, the changes will apply A Automatically. B When the new policy is written. C When the policy is up for renewal. D Within 60 days.
A Automatically. Correct! Changes made to broaden coverage in a dwelling policy, if made while the policy is in effect or 60 days before it goes into effect, will apply automatically and will not need to be endorsed to the policy.
If an insurer makes a change to broaden coverage in a dwelling policy while it is in effect, the changes will apply A Automatically. B When the new policy is written. C When the policy is up for renewal. D Within 60 days.
A Automatically. correct! Changes made to broaden coverage in a dwelling policy, if made while the policy is in effect or 60 days before it goes into effect, will apply automatically and will not need to be endorsed to the policy.
Which of the following other coverages is NOT included in the basic form dwelling policy? A Breakage of glass B Removal coverage C Personal property temporarily away from the insured premises D Tenant's improvements, alterations, and additions
A Breakage of glass Correct! Breakage of glass is included in the DP-2 and DP-3 only.
Which of the following property coverages would provide protection to contents damaged by fire? A Coverage C B Coverage D C Coverage A D Coverage B
A Coverage C Correct! Coverage C - Personal Property provides coverage for the contents of an insured dwelling.
Chapter: Dwelling Policy Which of the following would provide coverage for loss of income when an insured rental dwelling is rendered uninhabitable because of a covered loss? A Coverage D B Coverage A C Coverage B D Coverage C
A Coverage D Correct! Coverage D provides fair rental value coverage when insured rental dwellings suffer a loss covered by Coverage A, B, or C.
Which of the following would provide coverage for loss of income when an insured rental dwelling is rendered uninhabitable because of a covered loss? A Coverage D B Coverage A C Coverage B D Coverage C
A Coverage D Correct! Coverage D provides fair rental value coverage when insured rental dwellings suffer a loss covered by Coverage A, B, or C.
Chapter: Dwelling Policy Which of the following dwelling policy forms insures a structure on an actual cash value basis? A DP-1 B DP-2 C DP-3 D All DP forms
A DP-1 Correct! DP-1 insures the structure on an actual cash value basis. DP-2 and DP-3 insure the structure on a replacement cost basis.
Which of the following dwelling policy forms insures a structure on an actual cash value basis? A DP-1 B DP-2 C DP-3 D All DP forms
A DP-1 Correct! DP-1 insures the structure on an actual cash value basis. DP-2 and DP-3 insure the structure on a replacement cost basis.
Which of the following dwelling policy forms insures a structure on an actual cash value basis? A DP-1 B DP-2 C DP-3 D All DP forms
A DP-1 correct! DP-1 insures the structure on an actual cash value basis. DP-2 and DP-3 insure the structure on a replacement cost basis.
Chapter: Dwelling Policy If an individual insures his dwelling and contents under a DP-3, he would be protected against loss by all of the following perils EXCEPT A Theft of personal property located in the dwelling. B Damage caused by vandals. C Damage caused by the weight of ice, snow, or sleet. D Damage to the dwelling caused by burglars.
A Theft of personal property located in the dwelling. Correct! Coverage C (Contents) is written on a named peril basis. Theft is not named as an insured peril.
If an individual insures his dwelling and contents under a DP-3, he would be protected against loss by all of the following perils EXCEPT A Theft of personal property located in the dwelling. B Damage caused by vandals. C Damage caused by the weight of ice, snow, or sleet. D Damage to the dwelling caused by burglars.
A Theft of personal property located in the dwelling. Correct! Coverage C (Contents) is written on a named peril basis. Theft is not named as an insured peril.
All of the following are other coverages included in both the broad and special form dwelling policy EXCEPT A Theft of personal property. B Collapse. C Breakage of glass. D Lawns, trees, shrubs, and plants.
A Theft of personal property. correct! Theft of personal property only can be included by endorsement.
Within the first 60 days of coverage under a dwelling policy, how much notice is required for the cancellation of a policy? A 5 days B 10 days C 15 days D 20 days
B 10 days Correct! No matter what the reason, if a policy is canceled within the first 60 days, only 10 days advance notice is required.
Under dwelling policy, if an insurer chooses to repair or replace damaged or lost property, it must inform the insured within how many days of receiving proof of loss? A 10 days B 30 days C 45 days D 60 days
B 30 days Correct! The insurer has 30 days to tell the insured that it has chosen to repair or replace the covered property.
Chapter: Dwelling Policy Which of the following would be covered by the broad theft endorsement on a dwelling policy? A An antique car B A camera the insured has with him on vacation C A pedigreed show dog D Fabric and patterns in a clothing designer's studio at her home
B A camera the insured has with him on vacation Correct! All of these examples except the camera are types of property specifically excluded from coverage under the broad theft endorsement.
In a dwelling policy, which of the following other structures would be covered? A A structure used by the insured to house a manufacturing operation B A structure rented to a neighbor for use as a private garage C A structure used as part of a farming operation D A structure used by the insured in which to operate a retail business
B A structure rented to a neighbor for use as a private garage Correct! Under Coverage B, other structures may not be rented to anyone except a tenant of the main dwelling. However, a garage that is used for a private garage does not come under this exclusion of rented property and is covered even if it is rented to someone other than the occupant of the dwelling.
Which of the following is true of dwelling policy coverage? A Special forms only have special exclusions. B Exclusions apply to all 3 policy forms. C Exclusions only apply to broad policy forms. D There are no exclusions in basic forms.
B Exclusions apply to all 3 policy forms. Correct! Dwelling policy forms contain several general exclusions that define the actual extent of coverage provided. These exclusions are found in all 3 dwelling forms: broad, basic, and special.
Chapter: Dwelling Policy Which of the following claims would be included under the dwelling policy? A Death to the insured's pet caused by smoke inhalation B Fire damage to the insured's rowboat stored in the attached garage C Fire damage to a garage located on the insured premises used as an auto repair shop D Theft of the insured's auto from the detached garage
B Fire damage to the insured's rowboat stored in the attached garage Correct! Rowboats and canoes are covered under the dwelling policy as personal property.
Which of the following is NOT covered by the condominium unit owners endorsement? A Fixtures in the building B Furniture in the building C Alterations to the building D Appliances in the building
B Furniture in the building Correct! Alterations, appliances, fixtures and improvements that are part of the building, but which the insured is required to maintain coverage on because of the condominium association agreement, can be insured with this endorsement. Furniture is not specifically covered.
Which of the following additional perils is covered under both the basic form and broad form dwelling policies? A Freezing of plumbing, heating, or air conditioning systems B Internal explosion C Falling objects D Weight of ice, snow, or sleet
B Internal explosion correct! Internal explosion is included in all forms.
Chapter: Dwelling Policy In a dwelling policy, which of the following is true regarding personal liability coverage? A It is the same as in homeowners policies. B It must be added as a supplement or written as a separate policy. C It does not cover medical payments to others. D It is included in all dwelling policies.
B It must be added as a supplement or written as a separate policy. Correct! Unlike the homeowners policy, the dwelling policy does not include any coverage for personal liability. The personal liability supplement can be added to the dwelling policy or written as a separate policy. The coverage form includes 2 major coverages: personal liability and medical payments to others.
A house insured under a dwelling policy has been vacant for 70 consecutive days. Which of the following statements is true? A Loss by theft is covered. B Loss by vandalism and malicious mischief is excluded. C Glass breakage as a result of vandalism is covered. D Damage to glass building blocks is not covered.
B Loss by vandalism and malicious mischief is excluded. Correct! After vacancy for more than 60 consecutive days, VMM coverage is excluded under a Dwelling ('02) Policy.
If more than one person has an insurable interest in the property covered under a dwelling policy, A All insureds must decide which one will be liable for the loss. B The insurer will be liable for only the insured's interest in the damaged property. C Liability will be split evenly among all people who have insurable interest. D All involved insurers must decide which one will be liable for the loss.
B The insurer will be liable for only the insured's interest in the damaged property. correct! If more than one person has an insurable interest in a property, the insurer will be liable only for the insured's interest in the loss.
Chapter: Dwelling Policy Which of the following losses would most likely NOT be covered under Coverage A in the dwelling policy? A Supplies used for repair of the dwelling B Theft of a renter's lawnmower used to service the premises C Fire damage to building material on the premises D Outdoor personal property of the insured
B Theft of a renter's lawnmower used to service the premises Correct! Coverage A on the dwelling includes all attached structures and outdoor personal property or equipment used to maintain or service the premises if not covered elsewhere. The lawnmower most likely would not be covered because the dwelling insured is rented to others without content coverage. If the landlord furnishes lawnmowers or other equipment to service the premises, there is no need to schedule a small amount of content coverage.
Which of the following losses would most likely NOT be covered under Coverage A in the dwelling policy? A Supplies used for repair of the dwelling B Theft of a renter's lawnmower used to service the premises C Fire damage to building material on the premises D Outdoor personal property of the insured
B Theft of a renter's lawnmower used to service the premises correct! Coverage A on the dwelling includes all attached structures and outdoor personal property or equipment used to maintain or service the premises if not covered elsewhere. The lawnmower most likely would not be covered because the dwelling insured is rented to others without content coverage. If the landlord furnishes lawnmowers or other equipment to service the premises, there is no need to schedule a small amount of content coverage. Review ContentNext Question
An insured is in his garage with his 2 friends when some shelving loaded with heavy objects collapses and falls on them. All three of them are experiencing back pain, so they go to an emergency room where MRIs are performed at a cost of $750 each. How much will the medical expense coverage of the insured's dwelling policy pay for these costs? A $750 B $1,000 C $1,500 D $2,250
C $1,500 Correct! Medical expense coverage pays up to $1,000 per person, but not for the insured or other residents of the premises.
An insured is in his garage with his 2 friends when some shelving loaded with heavy objects collapses and falls on them. All three of them are experiencing back pain, so they go to an emergency room where MRIs are performed at a cost of $750 each. How much will the medical expense coverage of the insured's dwelling policy pay for these costs? A $750 B $1,000 C $1,500 D $2,250
C $1,500 correct! Medical expense coverage pays up to $1,000 per person, but not for the insured or other residents of the premises.
Under the additional living expenses coverage, if a civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's policy, loss would be covered for up to A 90 days. B 1 week. C 2 weeks. D 1 month.
C 2 weeks. Correct! A dwelling policy will pay loss of use due to civil authority for a maximum of 2 weeks.
The removal coverage that is included in the broad form dwelling policy will cover property temporarily removed from the premises to protect it from damage for how long? A 5 days B 15 days C 30 days D 60 days
C 30 days Correct! Removal coverage is provided for 30 days in the broad and special form, provided that endangerment by a covered peril made the removal necessary.
Question 8 of 12 Chapter: Dwelling Policy The removal coverage that is included in the broad form dwelling policy will cover property temporarily removed from the premises to protect it from damage for how long? A 5 days B 15 days C 30 days D 60 days
C 30 days correct! Removal coverage is provided for 30 days in the broad and special form, provided that endangerment by a covered peril made the removal necessary.
If an insured is in the process of moving to a new location, his personal property coverage under the dwelling policy will apply on a pro rata basis at both locations for A 90 days. B 5 days. C 30 days. D 60 days.
C 30 days. Correct! Personal property being moved to a new location can be covered for up to 30 days without notice to the insurer.
What is the maximum number of roomers or boarders for properties insured under the dwelling policy? A 2 B 3 C 5 D 6
C 5 Correct! Dwelling policies may insure a property that allows up to 5 roomers or boarders.
Assuming the insurer and the insured agree to the amount payable for a loss covered under a dwelling policy, how soon after the insurer has received proof of loss must it make payment? A 30 days B 45 days C 60 days D 90 days
C 60 days Correct! After the insurer receives proof of loss, it has 60 days to pay for the loss.
Which of the following would be covered by the broad theft endorsement on a dwelling policy? A Fabric and patterns in a clothing designer's studio at her home B An antique car C A camera the insured has with him on vacation D A pedigreed show dog
C A camera the insured has with him on vacation Correct! All of these examples except the camera are types of property specifically excluded from coverage under the broad theft endorsement.
Which of the following would be covered by the broad theft endorsement on a dwelling policy? A Fabric and patterns in a clothing designer's studio at her home B An antique car C A camera the insured has with him on vacation D A pedigreed show dog
C A camera the insured has with him on vacation Correct! All of these examples except the camera are types of property specifically excluded from coverage under the broad theft endorsement.
Chapter: Dwelling Policy All of the following would be eligible for coverage under the dwelling policy EXCEPT A A dwelling in the course of construction. B A duplex with one primary owner. C A house that has 5 families living in it D A tenant-occupied dwelling.
C A house that has 5 families living in it Correct! Eligibility requires that the dwelling have not more than 4 family units.
Dwelling policy Coverage C - Personal Property will cover all of the following EXCEPT A Computer software. B Canoes. C Animals and birds. D Hobby aircraft.
C Animals and birds. Correct! Animals, birds and fish are among the types of property that will not be covered by Personal Property coverage.
In dwelling policies, automatic increase in insurance is A Coverage without additional premium. B Coverage for newly acquired property. C Coverage by endorsement. D Automatic coverage.
C Coverage by endorsement. Correct! Automatic increase in insurance is an endorsement that may be added to a DP to increase the amount of insurance by an annual percentage to offset the effects of inflation. This endorsement requires additional premium.
Question 3 of 12 Chapter: Dwelling Policy Which of the following dwelling coverage forms would pay replacement cost for the dwelling? A All dwelling property coverage forms B DP-1 C DP-2 and DP-3 D DP-3 only
C DP-2 and DP-3 correct! DP-2 and DP-3 pay replacement as long as the house is insured for at least 80% of its value on the date of loss.
Question 7 of 12 Chapter: Dwelling Policy Which of the following is NOT covered by the condominium unit owners endorsement? A Appliances in the building B Fixtures in the building C Furniture in the building D Alterations to the building
C Furniture in the building Correct! Alterations, appliances, fixtures and improvements that are part of the building, but which the insured is required to maintain coverage on because of the condominium association agreement, can be insured with this endorsement. Furniture is not specifically covered.
Under which of the following conditions can broad theft coverage be added to a dwelling policy? A Broad theft coverage cannot be added to a dwelling policy. B If the policy has been in effect for 60 days C If the insured is owner-occupant of the dwelling D If permission is granted by the department of insurance
C If the insured is owner-occupant of the dwelling Correct! Broad theft coverage can be added as an endorsement to a dwelling policy if the insured is owner-occupant of the dwelling.
Dwelling coverage includes all of the following EXCEPT A Materials on the described location used to alter or repair the dwelling. B Building and outdoor equipment used to service the described location. C Land on which the dwelling is located. D The dwelling used principally for residential purposes.
C Land on which the dwelling is located. Correct! The land is not covered, and nothing that happens to the land would be considered a covered loss.
Under the dwelling policy, Coverage C - Personal Property is A A prohibited coverage in the dwelling form. B Limited to 50% of the amount of insurance that is written as Coverage A. C Limited to covering a servant's property while at the insured location. D Automatically provided as 50% of Coverage A.
C Limited to covering a servant's property while at the insured location. Correct! Dwelling Coverage C is limited to covering property owned by a guest or servant while the property is at the insured location. Under a homeowners policy, the property would be covered the same while on or off the premises.
Under the dwelling policy, Coverage C - Personal Property is A A prohibited coverage in the dwelling form. B Limited to 50% of the amount of insurance that is written as Coverage A. C Limited to covering a servant's property while at the insured location. D Automatically provided as 50% of Coverage A.
C Limited to covering a servant's property while at the insured location. correct! Dwelling Coverage C is limited to covering property owned by a guest or servant while the property is at the insured location. Under a homeowners policy, the property would be covered the same while on or off the premises.
Which of the following is NOT true concerning the fair rental value coverage provided in a dwelling policy? A Coverage continues until repairs are completed. B The period of time to repair or replace is not limited by the expiration date of the policy. C Loss or expense caused by the cancellation of a lease is covered. D It pays for the loss of rent you would have collected less any expenses that would not have continued.
C Loss or expense caused by the cancellation of a lease is covered. Correct! The cause for the property not being livable must be a covered peril.
The endorsement that provides coverage for losses arising from sudden collapse of earth arising from underground limestone created by the action of water on rock formations is a/an A Earthquake endorsement. B Earth subsidence endorsement. C Sinkhole collapse endorsement. D Mine subsidence endorsement.
C Sinkhole collapse endorsement. correct! The sinkhole collapse endorsement will provide coverage for sinkhole collapse, which means a sudden settlement or collapse of the earth supporting the property resulting from an underground hole caused by water on limestone or other rock formations.
Under which of the following conditions can broad theft coverage be added to a dwelling policy? A Broad theft coverage cannot be added to a dwelling policy. B If the policy has been in effect for 60 days C If the insured is owner-occupant of the dwelling D If permission is granted by the department of insurance
CIf the insured is owner-occupant of the dwelling Correct! Broad theft coverage can be added as an endorsement to a dwelling policy if the insured is owner-occupant of the dwelling.
Chapter: Dwelling Policy Which of the following is true of dwelling policy coverage? A Exclusions only apply to broad policy forms. B There are no exclusions in basic forms. C Special forms only have special exclusions. D Exclusions apply to all 3 policy forms.
Correct! Dwelling policy forms contain several general exclusions that define the actual extent of coverage provided. These exclusions are found in all 3 dwelling forms: broad, basic, and special.
Coverage for water backup or sump pump overflow is excluded from the Dwelling Policy. However, with the purchase of the water backup and sump pump overflow endorsement, coverage for up to $5,000 in loss or damage can be provided for an additional premium. What is the deductible associated with this coverage? A $300 B $350 C $200 D $250
D $250 Correct! Coverage for up to $5,000 in loss or damage, subject to a $250 deductible, can be provided for an additional premium with this endorsement.
If an insured is in the process of moving to a new location, his personal property coverage under the dwelling policy will apply on a pro rata basis at both locations for A 60 days. B 90 days. C 5 days. D 30 days.
D 30 days. Correct! Personal property being moved to a new location can be covered for up to 30 days without notice to the insurer.
If an insured is in the process of moving to a new location, his personal property coverage under the dwelling policy will apply on a pro rata basis at both locations for A 60 days. B 90 days. C 5 days. D 30 days.
D 30 days. correct! Personal property being moved to a new location can be covered for up to 30 days without notice to the insurer.
Under the Dwelling policy form, what is the maximum time limit during which multiple volcanic activities would be considered part of one occurrence? A 24 hours B 36 hours C 48 hours D 72 hours
D 72 hours Correct! All volcanic eruptions will be considered one occurrence if they occur within one 72-hour period.
Under the Dwelling policy form, what is the maximum time limit during which multiple volcanic activities would be considered part of one occurrence? A 24 hours B 36 hours C 48 hours D 72 hours
D 72 hours correct! All volcanic eruptions will be considered one occurrence if they occur within one 72-hour period.
All of the following would be eligible for coverage under the dwelling policy EXCEPT A A tenant-occupied dwelling. B A dwelling in the course of construction. C A duplex with one primary owner. D A house that has 5 families living in it
D A house that has 5 families living in it Correct! Eligibility requires that the dwelling have not more than 4 family units.
Which of the following claims would be included under the dwelling policy? A Fire damage to a garage located on the insured premises used as an auto repair shop B Theft of the insured's auto from the detached garage C Death to the insured's pet caused by smoke inhalation D Fire damage to the insured's rowboat stored in the attached garage
D Fire damage to the insured's rowboat stored in the attached garage Correct! Rowboats and canoes are covered under the dwelling policy as personal property.
Which of the following claims would be included under the dwelling policy? A Fire damage to a garage located on the insured premises used as an auto repair shop B Theft of the insured's auto from the detached garage C Death to the insured's pet caused by smoke inhalation D Fire damage to the insured's rowboat stored in the attached garage
D Fire damage to the insured's rowboat stored in the attached garage correct! Rowboats and canoes are covered under the dwelling policy as personal property.
Chapter: Dwelling Policy Under which of the following conditions can broad theft coverage be added to a dwelling policy? A If permission is granted by the department of insurance B Broad theft coverage cannot be added to a dwelling policy. C If the policy has been in effect for 60 days D If the insured is owner-occupant of the dwelling
D If the insured is owner-occupant of the dwelling Correct! Broad theft coverage can be added as an endorsement to a dwelling policy if the insured is owner-occupant of the dwelling.
A basic dwelling policy automatically provides coverage against fire, lightning, and A Smoke. B Riot. C Windstorm. D Internal explosion.
D Internal explosion. Correct! The other three perils are part of the extended coverages that may be added to the basic form for an additional premium.
Under a dwelling policy, which of the following is NOT a factor in determining a loss? A The policy limit B The amount reflecting the insured's interest in the property at the time of loss C The amount necessary to repair or replace the property D The amount negotiated by the insured
D The amount negotiated by the insured Correct! The value of a loss is decided according to the actual cash value of the property, the policy limit, the amount needed to repair or replace the property, or the amount reflective of the insured's interest in the property.
Replacement cost coverage is provided in both the broad and special form dwelling policies when A The amount of insurance on both the dwelling and personal property is at least 80% of its replacement cost when the policy is written. B The amount of insurance on the dwelling is at least 90% of its replacement cost when the policy is written. C The dwelling is insured for 100% of its replacement cost at the time of a loss. D The amount of insurance on the dwelling is at least 80% of its replacement cost at the time of loss.
D The amount of insurance on the dwelling is at least 80% of its replacement cost at the time of loss. Correct! It is always a requirement on property forms that provide replacement cost coverage that insurance on the dwelling be at least 80% of its replacement cost at the time of loss.
Chapter: Dwelling Policy How much is the premium for the dwelling under construction endorsement under the dwelling policy? A 75% of the gross premium B The full value of the house C 50% of the actual value premium D The average amount of insurance during construction
D The average amount of insurance during construction Correct! The premium is based on the average value of the house and building materials from the first day of construction until completion.
How much is the premium for the dwelling under construction endorsement under the dwelling policy? A 75% of the gross premium B The full value of the house C 50% of the actual value premium D The average amount of insurance during construction
D The average amount of insurance during construction Correct! The premium is based on the average value of the house and building materials from the first day of construction until completion.
All of the following are characteristics of the dwelling policy EXCEPT A Coverage includes the dwelling only, contents only, or both. B Incidental occupancy of limited service-type exposure is permitted. C Dwellings up to four family units are eligible. D The dwelling must be owner-occupied.
D The dwelling must be owner-occupied. correct! Dwelling policies insure residential exposures with only limited service-type business exposures allowed. The dwelling can be completed or under construction, and can be owner- or tenant-occupied. The dwelling policy can insure the dwelling only, contents only, or both.
Under which of the following circumstances would an insurer be allowed to cancel a dwelling policy midterm? A The insured's claims have exceeded the amount of coverage. B The insured wants to make suspicious increases to his or her coverage. C The insured reached his or her limit on the number of claims. D The insured knowingly lied about the year the property was constructed.
D The insured knowingly lied about the year the property was constructed. Correct! The only way an insurer can cancel a policy midterm is if there has been a misrepresentation of a material fact or if the risk has changed substantially from when it was first insured.
In which of the following situations would off-premises coverage in a broad theft endorsement apply? A The insured's live-in maid's quarters are burglarized. B The insured's jewelry is stolen from her vacation home after she returns home. C The insured's vacuum cleaner is stolen from her apartment. D The insured's camera is stolen from his vacation home while he is there.
D The insured's camera is stolen from his vacation home while he is there. correct! Off-premises coverage through a broad theft endorsement covers property that is either owned or used by the insured when he or she is away from the described premises.
