Insurance chap 6
K has a Homeowners policy with a $100,000 Coverage E limit and a $1,000 Coverage F limit. A guest falls in K's house, and their injuries result in $1,500 of medical expenses incurred over three months. How much will K's policy pay?
$1,000
C's debit card is stolen, and $1,000 is subsequently stolen from their account. How much will C's HO-3 policy pay for the loss?
$500
The Loss Assessment Additional Coverage provided by Section I of a Homeowners policy provides limited coverage for:
Assessments made for the insured's share of losses relating to property owned by a homeowners association
Which of the following is an Additional Coverage under Section II of a Homeowners policy?
Loss Assessment
When coverage is provided under the Additional Coverages of Section II of a Homeowners policy, payments are:
Made in addition to policy limits
If a Homeowners policy provision is change, the change must be made in writing by:
The insurer
Homeowners policies would not cover which of the following losses?
Theft of building materials from the dwelling while it is under construction
Under Coverage C special limits of liability, Homeowners policies cover:
Theft of furs and jewelry up to $1,500
Under an unendorsed Homeowners policy, jewelry is covered up to what amount?
$1,500 for loss by theft
On a Broad Form Homeowners policy, if the cost of a covered loss to a structure and any debris removal expenses exceeds policy limits, how much additional coverage is provided to pay any remaining debris removal expenses?
5% of the applicable limit
All of the following would be included in the definition of insured location, except: A summer vacation home rented by the insured Land upon which a 4-family dwelling is being built as a residence for the named insured C A 5-family dwelling in which the insured lives in one of the units, including the structures and grounds D A boat slip used by the named insured
A 5-family dwelling in which the insured lives in one of the units, including the structures and grounds
All of the following perils are covered by a Broad Form Homeowners policy, except: Frozen pipes in a fire sprinkler system Discharge of steam from an appliance Overflow of water from a plumbing system Backup of a sewer or drain
Backup of a sewer or drain
All of the following are categories of personal property with a special limit of insurance under Coverage C of a Homeowners Policy, except:
Household appliances
Which of the following is true concerning the Home Day Care Coverage Endorsement added to a Homeowners policy?
It extends Section II coverages to the insured's home day care business
L owns a home covered under an HO-3 for $200,000. Under Coverage D, how much coverage does L have for lost rental income if the basement apartment becomes uninhabitable due to a fire loss?
$60,000
A home is insured on an HO-3 for $90,000. If the home sustains a total fire loss and the replacement value of the home at the time of loss is $120,000, how much does the insurer pay?
$90,000
Liability coverage may be provided by a Homeowners policy for the insured's use of which of the following watercraft?
20-foot sailing boat
Under a Homeowners policy, an unrelated resident in the care of the named insured is also considered an insured up to what age?
21
Coverage C of the Homeowners policy would cover which of the following? A camera stolen while the insured is on vacation The insured's registered pet dog Property of the tenant of an apartment located in the insured's garage Business data stored on the insured's laptop computer
A camera stolen while the insured is on vacation
J has a Homeowners policy written on the HO-3 form. Which of the following people would not be considered an insured on J's policy?
A friend who is renting a bedroom in J's house since it is only three blocks away from work
Under the Watercraft Liability Endorsement on a Homeowners policy, an injury to which of the following people would be covered under Coverages E and F?
A guest of the insured
Under Section II of a Homeowners policy, which of the following may receive medical payments for expenses incurred following a bodily injury?
A guest of the insured on the residence premises
Liability associated with the ownership or operation of all of the following vehicles would be excluded by Homeowners policies, except:
A lawn tractor used to service the residence
Homeowners policies cover all of the following losses to trees, shrubs, and plants, except:
A loss resulting from a windstorm
Which of the following items of property is covered under the Homeowners policies?
A model airplane
Which of the following would not be eligible to purchase a Homeowners policy?
A person who owns and lives on a farm
Under Homeowners policies, a worker whose duties are related to the maintenance or use of the residence premises is defined as:
A residence employee
P owns a condo and has an HO-6 policy. All of the following are insured under Coverage A of the policy, except: A structure on the premises used for P's business Another structure owned by P that is used for personal storage Fixtures Alterations
A structure on the premises used for P's business
All of the following conditions apply to Section II of a Homeowners policy, except: Subrogation Waiver or Change Abandonment Severability
Abandonment
The HO-3 covers losses to other structures causes by which of the following perils?
Abrupt collapse from defective construction materials
Coverage C has special limits of liability for all of the following items of personal property, except: Watercraft and its trailers Money and securities An insured's phone in their car An insured's desktop office computer
An insured's desktop office computer
Under a Homeowners policy, personal liability coverage protects the insured from claims resulting from:
Bodily injury or property damage to others
An insured adds the Business Pursuits Endorsement to their Homeowners policy. The insured may elect to add coverage for:
Bodily injury resulting from corporal punishment
Which of the following is true regarding the HO-4 and HO-6 forms? Both forms provide open perils coverage on the personal property All losses are paid on a replacement cost basis Both forms are used to insure the personal property and personal liability of the insured, but not necessarily the structure itself The amount of insurance on the dwelling containing personal property is 10% of the Coverage C amount of insurance
Both forms are used to insure the personal property and personal liability of the insured, but not necessarily the structure itself
Under the Homeowners forms, Coverage C provides which type of coverage?
Contents and personal property
An insured has a Homeowners policy that protects a dwelling and a swimming pool. While a guest is staying with the insured, the insured's 8-year-oild child takes the guest's phone and purposefully throws it into the pool. The insured's policy will:
Cover the damage under the Damage to Property of Others Additional Coverage
A Special Form (HO-3) Homeowners policy provides all of the following coverages, except: Coverage for the removal of debris after a covered loss Coverage for the abrupt caving in of the insured dwelling due to defective construction Open perils coverage for personal property removed from the premises when endangered by a named peril Coverage for an insured required by law to test for and treat pollutants Good Job!
Coverage for an insured required by law to test for and treat pollutants
F rents out their basement to a tenant. After a fire loss to a neighbor's premises, a civil authority keeps F and the tenant from being able to use the dwelling. Which statement best describes the period during which the loss of rent is paid by F's Homeowners policy?
Coverage is provided for no more than 2 weeks
R owns a home insured on an HO-3 policy and rents out a suite over a detached garage to tenants. R's furniture used to furnish the suite is:
Covered up to $2,500 as an Additional Coverage
Under Section II of a Homeowners policy, all of the following are covered, except: the insured's liability for bodily injury to others A guest's medical expenses for an accident arising out of the residence premises The insured's liability for damages to the property of others Damage to property of the insured
Damage to property of the insured
An insured has an unendorsed HO-3 policy on their home. The insured's property sustains $1,500 of damage caused by back up of the sewer. The insurer will:
Deny coverage
C has a Homeowners policy with the Personal Property Replacement Cost Endorsement. The insurer will only pay the actual cash value of personal property until actual repair or replacement is complete if the amount of loss:
Exceeds $500
Any liability coverage provided by a Homeowners policy is:
Excess insurance, unless other insurance is written as excess insurance
Which of the following losses covered by a Homeowners policy would be subject to a deductible?
Floor damage after water overflows from an appliance
When a Homeowners policy provides coverage for medical payments, payments are provided:
For funeral expenses
The definition of fungi provided by the Limited Fungi, Wet or Dry Rot, or Bacteria Endorsement of a Homeowners policy includes all of the following, except: By-products released by fungi Mold Fungi intended for consumption Mycotoxins
Fungi intended for consumption
A mobile home may obtain property insurance in which of the following ways?
HO-2 or HO-3 policy with the Mobile Home Endorsement
A deer chews a hole in an insured's shed sitting next to a pond. Which of the following forms could cover this damage?
HO-3
A tenant should buy which of the following Homeowner policy forms?
HO-4
Which form is designed for tenants?
HO-4
The duties required of an injured person seeking coverage under Medical Payments to Others of an insured's Homeowners policy include all of the following, except: Help the insurer in settling the claim Cooperate with the insurer Promptly notify the insurer of any notice or demand Submit to a physical exam by the insurer's physician
Help the insurer in settling the claim
Unlike the Broad Form, the Special Form (HO-3) does which of the following?
Insures the dwelling and other structures on an open perils basis
Under Section II of a Homeowners policy, which of the following statements about the Damage to Property of Others Additional Coverage is not correct?
It duplicates coverage that is included in Section I
Which of the following claims would be covered under the Personal Injury Endorsement attached to an HO-3 policy? Injury related to a business engaged in by the insured Liability arising out of disputes between insureds Liability arising from publication of material that defames, libels, or slanders another person Civil activities for which the insured is paid
Liability arising from publication of material that defames, libels, or slanders another person
Under a Homeowners policy, medical payments provided by Coverage F are:
Not an admission of the insured's liability
A dwelling insured by a Special (HO-3) Homeowners policy sustains extensive fire damage. After the loss, the insured must do all of the following, except:
Notify the police
On a Special Form Homeowners policy, the dwelling and other structures are insured against which perils?
Open perils
The Scheduled Personal Property Endorsement on a Homeowners policy provides which of the following coverages to described property?
Open perils coverage
On a Special Form Homeowners policy, which of the following coverages is provided under the Property Removed Additional Coverage?
Open perils coverage for 30 days
Which of the following is not correct regarding the Damage to Property of Others Additional Coverage provided by Section II of a Homeowners policy? The coverage is automatically provided by the policy Payments are made without reducing the medical payments limit of liability Payments are subject to the policy deductible Payments are made without reducing the personal liability limit of liability
Payments are subject to the policy deductible
Which type of liability limit applies to medical payments coverage provided by a Homeowners policy?
Per person limit
An insured's young children were playing in the backyard and accidentally threw a ball through the neighbor's window, damage an expensive vase owned by the neighbor. The neighbor sues the insured for the losses. Damages the insured owes to the neighbor are covered by which part of the insured's Homeowners policy?
Personal liability coverage
The HO-2 protects against all of the following losses, except: Fire loss to a tool shed that stored gasoline in gas cans for the insured's personal use of a lawn mower Theft of jewelry Rain damage to the interior after a window was left open during a storm Smoke damage to a fence after a house fire
Rain damage to the interior after a window was left open during a storm
An insured with a Broad Form Homeowners policy suffers a fire loss that damages the dwelling and personal property. The loss to the dwelling is valued at its:
Replacement cost
Under Section II of the Homeowners policy, a two-family dwelling where the insured resides in one of the units, including other structures and grounds at that location, is defined as:
Residence premises
Under Section II of a Homeowners policy, which of the following is correct?? Section II on the HO-6 is modified to adapt to the exposures of the condominium unit-owner Section II is the same on all Homeowners Forms Section II on the HO-4 (Tenant's Form) is modified to adapt to the tenant's exposures Section II on the HO-3 (Special Form) has broader coverage than Section II on the HO-2 (Broad Form)
Section II is the same on all Homeowners Forms
All of the following are true of the HO-2, except: The HO-2 insures against the Broad Form perils The HO-2 covers owner-occupied dwellings The HO-2 covers losses to the dwelling on an open perils basis The HO-2 pays for losses to the dwelling on a replacement cost basis
The HO-2 covers losses to the dwelling on an open perils basis
Which statement about property coverages provided by Homeowners policies is incorrect? The HO-3 covers the dwelling on an open perils basis The HO-4 covers the dwelling against the Broad Form named perils The HO-3 covers the contents against the Broad Form named perils The HO-4 covers additional living expenses incurred by the insured after a loss to the residence premises
The HO-4 covers the dwelling against the Broad Form named perils
N purchases a Broad Form Homeowners policy to protect a dwelling under construction. Which of the following statements about the policy's coverage is NOT correct?
The dwelling is protected on an open perils basis
N purchases a Broad Form Homeowners policy to protect a dwelling under construction. Which of the following statements about the policy's coverage is NOT correct? The dwelling is protected on an open perils basis The contents are protected on a named perils basis The dwelling is not protected against theft losses IF the dwelling is vandalized, coverage is provided
The dwelling is protected on an open perils basis
Coverage A under the Homeowners policy includes coverage for which of the following? Detached private structures on the residence premises The dwelling on the insured premises, plus any structures that are attached to the dwelling Theft from a dwelling under construction prior to its occupancy Private structures owned by the insured at other locations
The dwelling on the insured premises, plus any structures that are attached to the dwelling
Which of the following best describes coverage options an insured has when an Earthquake Endorsement is attached to an HO-3 policy?
The insured may opt in to coverage for exterior masonry veneer
Which of the following is not covered under Coverage A of the Homeowners policy? Structures that are attached to the dwelling The land on which the dwelling is located The dwelling on the residence premises Materials located on the residence premises used to repair the dwelling
The land on which the dwelling is located
Coverage A on a Homeowners policy with the Mobile Home Endorsement would cover all of the following, except:
The land on which the mobile home is located
Special Form Homeowners policies would cover which of the following theft losses?
Theft of personal property after the dwelling was damaged by an earthquake
Under a Homeowners policy, medical payments coverage will apply to medical expenses incurred after an accident within:
Three years
Eligible dwellings for Homeowners insurance may have up to how many roomers or boarders per family?
Two
All of the following perils are excluded by Homeowners policies, except: Unintentional loss Damage caused by radiation Expenses incurred to respond to pollutants, by order of a local ordinance Neglecting to save property at the time of loss
Unintentional loss
Coverage C on the HO-3 would cover which of the following losses?
Vandalism loss to property the insured borrows from a neighbor
After an accident at an insured's home that results in bodily injury to a guest, the insured's Homeowners policy requires the insured to do all of the following, except:
Voluntarily make payments toward the guest's medical expenses
A Broad Form Homeowners policy would NOT cover which of the following losses? Damage to a dwelling's contents from water used to put out a fire Water damage resulting from frozen pipes of an automatic fire sprinkler system Hardwood damage after an accidental discharge of water from a dishwasher Water damage to personal property stored in the basement after a sump pump overflows
Water damage to personal property stored in the basement after a sump pump overflows
Which statement best describes when an applicant would purchase an HO-8?
When insuring an older home that might create a moral hazard when insurance is written at replacement cost
The insurer's duty to defend the insured, as provided by Section II of a Homeowners policy, ends:
When the damages awarded against the insured exhaust the personal liability limit