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Under Coverage B of a Homeowners Policy, all of the following are included, except: A The renting of a garage to a neighbor for a woodworking business B A building containing the insured's hobby woodworking shop C A detached carport D The insured's garage rented to a neighbor for private garaging
A Most private structures on the residence premises are covered under Coverage B if they are not used for business purposes.
The Homeowners form that provides open peril coverage on the dwelling and broad form coverage on personal property is the: A HO-3 B HO-2 C HO-5 D HO-8
A Open peril coverages are found only in HO-3 and HO-5. HO-3 the Dwelling is open peril with personal property being broad form, named peril. HO-5, everything is open peril. HO-2 is all broad form, named peril and the HO-8 is for older homes and is basic form named perils.
A tenant should buy which of the following Homeowner Policy Forms? A HO-4 B HO-8 C HO-2 D HO-5
A The HO-4 Form, providing Property Coverage C, is intended for tenants of rental dwellings and apartments.
All of the following are considered to be insured under a Homeowners Policy, except: A A 25-year-old friend who is living with an insured B A son or daughter while away at college, who is 23 C A 79-year-old father-in-law who is living with an insured D A friend's 14-year-old daughter who is living with an insured
A A 25-year-old friend who is living with an insured The definition of insured does not include anyone over the age of 21 that is not a relative.
Open peril coverage for both the dwelling and personal property is provided by the: A HO-5 B HO-6 C HO-8 D HO-3
A HO-5 The HO-5 is the only Homeowners form that provides open peril coverage for BOTH dwellings and personal property.
What type of homeowners policy provides coverage for an older home that has a high replacement cost, but is located in a neighborhood with low market values? A HO-8 B HO-2 C HO-5 D HO-3
A HO-8 HO-8 Modified Form is for older homes and provides Basic Form Named Perils coverage. Commonly used on homes where there the home replacement cost is higher than the current market value.
Which of the following coverages is not included in a standard Homeowners policy? A Personal Injury liability B Medical Payments C Bodily Injury liability D Property Damage liability
A Personal Injury liability
Which statement is true concerning Homeowners policies? A Property usually located in a student dormitory is limited to 10% of Coverage C or $1,000, whichever is greater B Animals, birds, and fish are considered covered personal property under Coverage C C Coverage is provided for Other Structures used to store business property owned by someone other than the insured or a tenant D Dwellings under construction are covered for theft
A Property usually located in a student dormitory is limited to 10% of Coverage C or $1,000, whichever is greater Property usually located at another location is limited to 10% or $1,000, whichever is greater.
Which one of these Homeowners endorsements is used to schedule separate coverage for one or more of nine categories of personal property? A Scheduled Personal Property B Personal Liability C Fine Arts D Personal Jewelry
A Scheduled Personal Property The Scheduled Personal Property Endorsement provides open peril coverage for items such as jewelry, furs, cameras, musical instruments, silverware, etc. A Homeowners policy with no endorsements provides only limited coverage for these items.
Which of the following statements is false concerning Section II of a Homeowners Policy? A Section II provides no defense in the event of a groundless, false, or fraudulent claim B Payment of a medical payment is not an admission of legal liability C Section II protects the insured against third party claims D Bankruptcy of an insured does not relieve the insurer of its obligations
A Section II provides no defense in the event of a groundless, false, or fraudulent claim The policy provides for defense of any claim to which Coverage applies, even if groundless, false, or fraudulent.
If an owner-occupied home is totally destroyed without fraud by a fire, the amount of the loss is based on: A The policy limit B The market value C The replacement value D The coinsurance value
A The policy limit In the event of a total loss, the home is insured up to the policy limit. Coinsurance only applies to partial losses.
Under a Homeowners policy, Coverage B is what percentage of Coverage A? A 25% B 10% C 5%
B As with the Dwelling Policy, Coverage B is provided at 10% of the Coverage A limit.
In the event an apartment attached to the insured's home is damaged and unlivable, what percentage of Coverage A does the HO-3 provide for the rental value? A 10% B 30% C 5% D 20%
B Coverage D will pay up to 30% of Coverage A on the HO-3 for the fair rental value, less continuing expenses, of the apartment.
A deer chews a hole in an insured's shed sitting next to a pond. Which of the following forms could cover this damage? A HO-2 B HO-3 C DP-1 D HO-8
B The HO-3 Special Form covers everything except what is excluded. A deer is not a listed exclusion as it is not considered a bird, vermin, rodent, or insect.
The following are all additional coverages under a Homeowners Policy, except: A Property Removed B Governmental Action C Collapse D Loss Assessment
B Governmental Action Governmental action is an exclusion; not an additional coverage.
The Homeowners form that provides open peril coverage on the dwelling and broad form coverage on personal property is the: A HO-8 B HO-3 C HO-5 D HO-2
B HO-3 Open peril coverages are found only in HO-3 and HO-5. HO-3 the Dwelling is open peril with personal property being broad form, named peril. HO-5, everything is open peril. HO-2 is all broad form, named peril and the HO-8 is for older homes and is basic form named perils.
An HO-3 policy provides coverage on which basis? A Open perils coverage on both the dwelling and personal property B Open perils coverage on the dwelling and broad form coverage on the personal property C Replacement cost coverage on both the dwelling and personal property D Broad form perils coverage on both the dwelling and personal property
B Open perils coverage on the dwelling and broad form coverage on the personal property The H0-3 provides open perils coverage on the dwelling, and Named Broad Form perils coverage on the personal property. Losses to the dwelling are paid at replacement cost and losses to personal property are paid at actual cash value.
Under a Homeowners Policy, Coverage A includes coverage for: A Structures owned by the insured at other locations B The dwelling on the premises plus structures that are attached to the dwelling C Detached private structures on the Residence Premises D Theft from the site of a dwelling under construction
B The dwelling on the premises plus structures that are attached to the dwelling The policy does not cover theft in, to, or from a dwelling under construction, including materials used in the construction.
Which of the following special limits of liability is provided under Coverage C? A Stolen tea sets are covered up to $1,000 B Theft of furs are covered up to $1,500 C Theft of guns is covered up to $3,000 D Theft of money is covered up to $500
B Theft of furs are covered up to $1,500 The limit for loss by theft of jewelry and furs is $1,500.
Which of the following best describes the reason to purchase an HO-8? A When insuring homes namely located on farms B When insuring an older home that might create a moral hazard when insurance is written at replacement cost C When insuring homes with a replacement cost exceeding $250,000 D When looking for a policy that covers the dwelling on an ACV basis
B When insuring an older home that might create a moral hazard when insurance is written at replacement cost The HO-8 is designed for the well-maintained older homes, which may contain property or construction features difficult or impossible to replace.
Under Section II of the Homeowners Policy, a one or two family dwelling where the insured resides in one of the units, including other structures and grounds at that location, is defined as: A Other Structions B The Residence Premises C Non-business Premises D The Dwelling Structures
B. The Residence Premises The Residence Premises
The Homeowners Policy provides coverage for all of the following, except: A A motorized wheelchair B An ATV on the insured's premises C A motorized golf car being driven on a public beach D A riding lawn mower pulling a two-wheel garden trailer
C A motorized golf car being driven on a public beach In order for coverage to apply, a motorized golf car must be used on a golfing facility or within a private residential community for approved purposes.
Which of the following would be covered under the Damage to Property of Others additional coverage of the Homeowners Policy? A Damage arising out of the insured's business pursuits B Damage to property owned by the insured C Damage caused intentionally by the insured's 10-year-old son D Damage to property owned by the insured's tenant
C Damage caused intentionally by the insured's 10-year-old son Intentional damage by a child under age 13 is covered.
Which form is designed for Tenants? A HO-3 B HO-8 C HO-4 D HO-2
C HO-4
Which of the following coverages IS included in the Homeowners policy, but is NOT included in an unendorsed Dwelling policy? A Additional living expense B Dwelling C Liability D Fair rental value
C Liability Both Homeowners and Dwelling policy's provide Dwelling coverage, Fair Rental Value and Additional Living Expense coverages. Liability is a coverage part included in a Homeowners policy, but to include Liability in a Dwelling policy requires a Personal Liability Supplement.
Which statement regarding medical payments under a homeowners policy is true? A Medical payments under a Homeowners Policy will cover the insured's injuries B Medical payments include personal injury C Medical payments under a Homeowners Policy will cover funeral expenses D Medical payments are provided by Coverage E
C Medical payments under a Homeowners Policy will cover funeral expenses Funeral expenses are covered expenses under Coverage F, Medical Payments. Med Pay always pays TO OTHERS, except boats and auto.
Most of H's jewelry is covered under the Coverage C special limits except for her $10,000 necklace inherited from her mother. Which of the following endorsements might H's agent recommend? A Personal Property Replacement Cost B Open Peril Personal Property C Scheduled Personal Property D Increased Limits - Coverage C
C Scheduled Personal Property The Scheduled Personal Property is used to increase limits of liability for certain categories of personal property and to broaden the perils insured against that apply to that property.
Which of the following is true regarding Section II of the Homeowners Policy? A Section II of the HO-6 is modified to adapt to the exposures of the Condominium unit owner B Section II of the HO-3 (Special Form) has broader coverage than Section II of the HO-2 (Broad Form) C Section II is the same in all Homeowners Forms D Section II of the HO-4 (Tenants Form) is modified to adapt to the Tenant's exposures
C Section II is the same in all Homeowners Forms Since the liability exposures of individuals and families have little to do with their mode of residence, Section II is the same in all Homeowners Policy forms.
Which person is not a covered resident under the Homeowners Policy? A A 22-year-old son enrolled in school full time away from home B The insured's spouse C The insured's tenant D A 20-year-old exchange student who is a resident of the household
C The insured's tenant Tenants must acquire their own insurance to cover their personal property and liability.
Which of the following is not true about the Home Business endorsement? A Professional services are excluded B Advertising injury is covered C Only property damage is covered D The business must be owned by the insured
C. Only property damage is covered The endorsement provides both business property and liability coverages for an eligible home business.
Which statement is true concerning Section II of a Homeowners Policy? A Medical payments coverage is available for the insured and resident relatives B Medical payments will pay for a maximum of 1 year from the date of the accident C Damage to Property of Others coverage is provided up to a specified limit regardless of negligence D Medical payments coverage is not available for a residence employee
C. Damage to Property of Others coverage is provided up to a specified limit regardless of negligence Damage to Property of Others pays up to $1,000 regardless of whether the insured is liable or not.
Which of the following is covered under Section II of a Homeowners Policy? A An injury to the insured's 10-year-old son B Liability arising from a business pursuit C An injury to the insured's employee D An injury to a guest of the insured
D An injury to a guest of the insured An injury to a guest would be covered under Section II. Business pursuits, and injuries to insureds and their employees are excluded.
Choose the claim that would be covered under Coverage E of a Homeowners Policy. A The transmission of a communicable disease by an insured B Bodily Injury arising out of the application of corporal punishment by an insured C Bodily injury to an insured D Bodily injury to a guest caused by the insured's pet dog
D Bodily injury to a guest caused by the insured's pet dog Liability coverage does not apply to BI or PD suffered by the insured. Communicable diseases and corporal punishment are excluded under the policy.
An individual who owns and lives in a condominium can obtain broad coverage for personal property in the condo under which Homeowners form? A HO-3 B HO-8 C HO-5 D HO-6
D HO-6 HO-6 is for condominium owners, HO-5 is the comprehensive form, HO-8 is the modified form for older homes, and the HO-3 is the special form.
An individual who owns and lives in a condominium can obtain broad coverage for personal property in the condo under which Homeowners form? A HO-5 B HO-8 C HO-3 D HO-6
D HO-6 HO-6 is for condominium owners, HO-5 is the comprehensive form, HO-8 is the modified form for older homes, and the HO-3 is the special form.
Choose the false statement regarding the coverage of property under a Homeowners Policy. A Theft of silverware is covered up to $2,500 B The Scheduled Personal Property Endorsement provides open perils coverage C The Personal Property Replacement Cost Endorsement may be added to cover the contents on a replacement cost basis D Money is covered up to $500 per occurrence
D Money is covered up to $500 per occurrence The limit on money is $200.
Which of the following is not covered under Section II of the Homeowners Policy? A Medical expenses for an accident arising out of the premises or non-business activities of an insured B The insured's liability for bodily injury to others C The insured's liability for damages to property of others D Property of the insured
D Property of the insured Section II provides liability coverage. Section I would cover property of the insured.
Choose the answer that is true regarding the Homeowner HO-4 and HO-6 Forms. A Losses are paid on a Replacement Cost basis B Both provide Open Perils Coverage on the personal property C The amount of insurance on the condominium containing the personal property is 10% of the Coverage C amount of insurance D The HO-4 is used to insure the personal property and personal liability of the insured, but does not include the structure itself
D The HO-4 is used to insure the personal property and personal liability of the insured, but does not include the structure itself Since the insured under the HO-4 Form does not own the structure, there is no Coverage on the building.
Under a Homeowners Policy, Coverage A includes coverage for: A Detached private structures on the Residence Premises B Structures owned by the insured at other locations C Theft from the site of a dwelling under construction D The dwelling on the premises plus structures that are attached to the dwelling
D The dwelling on the premises plus structures that are attached to the dwelling The policy does not cover theft in, to, or from a dwelling under construction, including materials used in the construction
Which of the following would be covered under your homeowners liability policy? A Your neighbor accidentally catches your house on fire B Your son accidentally backs his car into your garage causing damage to your garage C You intentionally set fire to your own house D You accidentally catch the neighbors house on fire
D You accidentally catch the neighbors house on fire H.O. Liability provides coverage for loss or damage to other peoples property or injuries. (Your son accidentally backs his car into your garage causing damage to your garage) is describing property damage. (You intentionally set fire to your own house) Intentional loss is always excluded and (Your neighbor accidentally catches your house on fire) the neighbors H.O. Liability would cover this loss.
The HO-8 form settles losses to the building on what valuation method? A Replacement value B Aggregate value C Agreed value D Functional Replacement Value
D. Functional Replacement Value The loss valuation method for HO-8 is typically Actual Cash Value (ACV). However, if exact materials are not available, they may be replaced with materials that will perform the same function and have the same efficiency, even if they aren't of like kind and quality.
Which form is designed for the unit-owner of a condominium? A HO-8 B HO-6 C HO-2 D HO-4
b The HO-6 Form, with limited Coverage A, is designed for the owner-occupant of a condominium unit.
Under the Homeowners policy, which coverage provides indirect loss coverage? A Coverage B B Coverage C C Coverage D D Coverage A
c Coverage D provides for the insured's additional living expenses necessitated by damage to the dwelling, an example of indirect loss.
Residential dwellings with no more than _____ residential units and _____ roomers or boarders per family are eligible under a Homeowners Policy. A 4 residential units and 2 roomers or boarders B 2 residential units and 4 roomers or boarders C 4 residential units and 5 roomers or boarders D 1 residential unit and 2 roomers or boarders
c Residential dwellings eligible for the homeowners policy may contain one to four residential units and no more than 2 roomers or boarders per family.
Policyholder C's debit card is stolen, and $1,000 is subsequently stolen from his account. How much will his HO-3 pay for the loss? A $1,000 B 0% C $250 D $500
d Coverage up to $500 is paid for theft or unauthorized use of a credit card or electronic fund transfer card (debit card).
