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Which of these statements concerning Medical Payments to Others coverage are correct? ❑ A. Injury to an insured is not covered. ❑ B. The insured does not have to be legally liable for coverage to be available. ❑ C. Injuries that occur off the insured location are never covered. ❑ D. Medical payments are covered only if the expenses are reported within six months of the occurrence.

A and B are correct. Injuries to the named insured or regular residents, other than resident employees, are not covered. Injuries sustained while the injured party is off the insured location are covered if certain conditions are met. There is no requirement under Coverage F that the insured be legally liable for the injuries. Medical payments coverage is available for expenses incurred within three years of the accident date.

Which of these statements concerning personal liability coverage are correct? ❑ A. It covers damages that the insured becomes legally obligated to pay because of bodily injury or property damage. ❑ B. The insurer will not defend liability claims brought against the insured that are groundless or false. ❑ C. It applies to the insured's personal, nonbusiness activities that occur anywhere. ❑ D. It covers damages resulting from intentional acts of an insured.

A and C are correct. The insurance company will provide a defense for the insured at the insurer's expense, even when the charges are groundless. Damages resulting from intentional acts by an insured are not covered.

In the homeowners forms, ❑ A. the property coverage varies in each form. ❑ B. the property coverage is the same in each form. ❑ C. the liability coverage varies in each form. ❑ D. the liability coverage is the same in each form.

A and D are correct. The liability coverage is identical in all of the homeowners forms. It is only the property coverage that varies with the homeowners form selected.

An individual lives in an apartment. Which homeowners form should he purchase to cover his personal property? ❍ A. HO-4 ❍ B. HO-6 ❍ C. HO-8 ❍ D. HO-3

A is correct. The HO-4 is designed for tenants. It provides broad coverage for personal property and no coverage for the dwelling.

Which of the following cannot be covered by a homeowners Watercraft Liability endorsement? ❍ A. A 30-foot boat powered by a 25 horsepower outboard engine ❍ B. A 28-foot sailboat ❍ C. A 28-foot inboard motorboat ❍ D. A 25-foot boat powered by a 30 horsepower outboard engine

A is correct. The Watercraft Liability endorsement covers watercraft up to 26 feet long powered by outboard engines exceeding 25 horsepower, inboard-powered watercraft, or sailboats more than 26 feet long.

Which of these statements about Coverage C of a homeowners policy are correct? ❑ A. It only covers the insured's personal property while it is at the residence premises. ❑ B. At the insured's request, coverage applies to a guest's property while the guest is in the insured's residence. ❑ C. Property normally kept at a residence other than the residence premises is covered for 10% of the Coverage C limit or $1,000, whichever is greater. ❑ D. There is no coverage for property being moved from the residence premises to a new principal residence.

B and C are correct. Personal property is covered while it is away from the residence premises. When property is being moved to a new principal residence, full coverage applies for 30 days from the start of the move. Coverage for property belonging to an insured's guest or residence employee is available on request, but is not automatically provided.

Which homeowners form provides broad coverage for both the dwelling and its contents? ❍ A. HO-3 ❍ B. HO-2 ❍ C. HO-6 ❍ D. HO-8

B is correct. HO-2 provides broad coverage for the dwelling and personal property. HO-3 provides open peril coverage for the dwelling; HO-6 offers only limited coverage for the dwelling and broad coverage for personal property; and HO-8 provides only basic coverage.

Which of the following classes of personal property are subject to special sublimits of coverage under a homeowners policy? ❑ A. Animals, birds, and fish ❑ B. Money ❑ C. Watercraft ❑ D. Trailers

B, C, and D are correct. Loss of animals, birds, and fish are excluded entirely. All the other answer choices are subject to special sublimits of liability.

Under a homeowners policy, which of the following classes of personal property have special limits for theft losses, but not for other types of losses? ❑ A. Money ❑ B. Firearms ❑ C. Silverware ❑ D. Jewelry

B, C, and D are correct. The following classes of property have special limits for theft losses, but not for other types of losses: jewelry, watches, furs, and precious and semiprecious stones; silverware, goldware, or pewterware; and firearms. The limit for the loss of money is $200 per occurrence regardless of the cause of loss.

Which of the following could be covered by an unendorsed homeowners policy? ❑ A. Mobile home ❑ B. Home that is rented to another person ❑ C. Home occupied by the insured and two boarders ❑ D. Home that is owned and occupied by the insured

C and D are correct. Up to two boarders per family are allowed if the home is also occupied by the insured. An endorsement is required to insure a mobile home under a homeowners policy. The insured must live in the dwelling to qualify for homeowners coverage.

A homeowners policy has been in force 30 days, and the company discovers that the insured has misrepresented certain material facts. The insurer wants to cancel the policy. Under what circumstances may it do so? ❍ A. The company must wait until the policy has been in force for 60 days before it may cancel. ❍ B. The company must give the insured 30 days written notice of cancellation. ❍ C. The company must give the insured 10 days written notice of cancellation. ❍ D. Under no circumstances; a policy cannot be cancelled because of material misrepresentation by the insured.

C is correct. The insurance company may cancel a policy for any reason with 10 days' written notice to the insured during the first 60 days of a policy term.

The Additional Coverage for collapse is included in which homeowners form(s)? ❑ A. All forms ❑ B. HO-4 only ❑ C. HO-2 and HO-3 ❑ D. All forms except the HO-8

D is correct. The Collapse additional coverage is included in all of the homeowners forms except the HO-8.

A homeowner who wants the maximum protection for her home and personal property should purchase the ❍ A. HO-4. ❍ B. HO-2. ❍ C. HO-3. ❍ D. HO-5.

D is correct. The HO-5, the Comprehensive form, provides open peril coverage for dwellings, other structures, and personal property.

What is the limit on coverage for grave markers under the homeowners policy? ❍ A. $1,000 ❍ B. $2,000 ❍ C. $2,500 ❍ D. $5,000

D is correct. The homeowners policy includes coverage for up to $5,000 for damage to grave markers.