Chapter 4: Miscellaneous Personal Lines
Boatowner policy would apply in which situation: a. An unofficial race or speed contest b. When the boat is used without insureds permission c. When the boat is carrying passengers for a fee d. When the boat is hired out
a. An unofficial race or speed contest
What is NOT covered under a water craft endorsement: a. Physical Damage b. All of the choices c. Liability d. Medical Payments
a. Physical Damage
What is true about an umbrella policy. a. Provides broader coverage than the underlying policy b. Only covers what is covered by an underlying policy c. Will only provide up to 1 million dollars of coverage d. Umbrellas are considered to be very expensive
a. Provides broader coverage than the underlying policy
What is true about umbrella policies: a. There is no standard umbrella policy b. It usually has more exclusions than the underlying policy c. Covers excess liability only on autos d. All umbrellas are the same
a. There is no standard umbrella policy
Which of the following is NOT an exclusion under a boatowners policy? a. Uninsured boaters b. Osmosis c. Design defects d. Marring
a. Uninsured boaters
A boat owner policy covers which of the following? a. an unofficial race or speed contest b. an auto towing the boat c. none of the choices d. an official race
a. an unofficial race or speed contest
An umbrella policy covers: a. Outside events (carnivals, fairs, etc.) b. Excess liability coverage beyond the underlying limits on a homeowners policy and auto policy c. Excess liability and property damage to the insured d. Excess liability beyond the underlying limits on an auto policy only
b. Excess liability coverage beyond the underlying limits on a homeowners policy and auto policy
The maximum limit for a residential structure covered by flood insurance is: a. $500,000 b. $200,000 c. $250,000 d. $100,000
c. $250,000
An earthquake policy generally will have what type of deductible? a. $1,000 b. No deductible c. 15% of the policy limit d. $250
c. 15% of the policy limit
An earthquake policy's limits a. Are often more than the homeowners coverage limits b. Are the same as the personal property limits c. Are limited to the amount of coverage under the homeowners policy d. Are limited to $100,000
c. Are limited to the amount of coverage under the homeowners policy
A self-insured retention under a personal umbrella policy functions like: a. an underlying policy b. a smoothed limit c. a large deductible d. an exclusion
c. a large deductible
Flood insurance provided by NFIP is available for: a. mobile home and condos b. businesses and their contents c. all of the choices d. homes and their contents
c. all of the choices
A self-insured retention acts as a deductible and applies to claims covered by an umbrella policy, but excluded by an underlying policy in a personal umbrella. The S.I.R. ranges from $250 to: a. $500 b. $1,500 c. $750 d. $1,000
d. $1,000
Coverages provided by a personal umbrella policy that are broader than the coverages provided by an underlying policy are called: a. contractual liability coverage b. compensatory damages c. split limits of coverage d. drop-down coverages
d. drop-down coverages
