Guarantee Exam (Property)

An insured rents out a bedroom and his residence for $50 per week. The residence is badly damaged by fire. During the 3 weeks required to repair the fire damage, the insured pays $900 in rent for a short-term apartment, and the renter is forced to find other accommodations. Disregarding any extra expense for meals, how much would an HO-3 pay under Coverage D.

$1,050 Coverage D would pay $900 as additional living expense, and $150 as a loss of rent for a total of $1,050.

The BOP liability coverage form will cover medical expenses incurred and reported within what maximum time period after the accident?

1 year the medical expense insurance covers medical expenses for bodily injury caused by an accident. Medical expenses incurred and reported within 1 year of the accident are covered

What are the exclusions of Coverage E in a HO policy?

1. damage to property of owned/in the care of the insured 2. liability for any assessment charged against the insured as a member of an association 3. contractual liability 4. bodily injury to any person eligible for workers comp 5. bodily injury to named insured, relative, or minor residing in house

After an insurer appoints a new agent, the Commissioner must be notified within

15 days

In most standard fire policies, the insurer will pay the ACV or appraised value of a loss. However, if the insurer elects one of other two available loss settlement options, it must notify the insured of its choice within how many days after receiving proof of loss?

30 days

How soon foes the period of restoration for business income coverage begin after the direct loss?

72 hours

Which of the following exclusions would specifically fall under Coverage E in Homeowners insurance? A. Contractual liability B. bodily injury to a residence employee C. Falling objects d. land

A. Contractual liability

A house insured with a homeowners policy has been blown off its foundation by a tornado. It must be demolished and removed so a replacement house can be built. Which of the following is true about debris removal?

An additional 5% of the policy limit may be paid for debris removal

In a DP-1, if the insured elects to apply Coverage B to a detached garage, what will happen to Coverage A will?

It will be reduced to by 10% Coverage B - Other Structures applies 10% of Coverage A to a detached structure

If an agent is convicted of a criminal violation of the General Statutes, what will happen to the agent's license?

The license will be automatically suspended

If an applicant submits the initial premium with an application, which action constitutes acceptance?

The underwriters approve the application acceptance takes place when an insurer's underwriter approves the application and issues a policy

The ownership of a vessel insured by ocean marine insurance changes while the vessel is at sea. When will the hull policy terminate?

Upon the ship's arrival at the final port

Which of the following exposures is NOT covered under a homeowners policy? a. personal liability b. medical payments to an insured c. unscheduled personal property damage d. bodily injury to others

b. medical payments to an insured section II of the HO policy provides medical payments to others but excludes coverage for the payment of medical expenses of an insured.

After a covered loss on a HO policy, the insured must do all of the following EXCEPT: a. allow the insurer to inspect the property as often as reasonably necessary b. if requested, submit to an examination under oath. c. prepare an inventory of damaged and undamaged property, including bills, receipts, and related documentation d. abandon the property involved to the insurer

d. abandon the property involved to the insurer. the insured cannot abandon property to the company for any reason

How soon does the period of restoration begin for extra expense coverage after the direct loss?

immediately

Guarantee future dividends is considered to be an unfair or deceptive act known as

misrepresentation

What does HO personal property NOT cover?

personal property of roomers not related to the insured contents coverage does not apply to people who pay at the insured's home - tenants, renters, or boarders