Property Test Questions

Coercion

A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of

$3000 (under HO-2000)

A grave marker was damaged by vandals. It would cost $3,000 to have the damage repaired. Under these circumstances, how much would a homeowners policy pay?

$175,000

A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured's building, and $30,000 of expediting expenses, how much will the insured collect under the policy?

Nothing

An insured has a personal property replacement cost endorsement under her homeowners policy. If an expensive painting and an antique chair are stolen from the insured's home, what will the insured receive on the claim under that endorsement?

Class I Felony

Any person who willfully misstates financial or other information under oath may be charged with a

a felony and is subject to fines based on the dollar amount in question

If any insurance agent or broker embezzles or fraudulently converts to his own use any money received from insurance transactions, that agent or broker is guilty of

When an insurer's underwriter approves coverage

In forming an insurance contract, when does acceptance usually occur?

Apply and pay a fee to a nonresident state that reciprocates

In order to get a nonresident license in North Carolina an agent must

Single

Lily is driving her car through a residential area. She loses control of the car, crashes into Max's front porch. Max, who was sitting on the porch, is injured. Lily's liability insurance policy has a limit set at $500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does Lily have?

coverage that will permit the insured to continue in business without interruption following a property damage loss

The extra expense coverage form provides

$500

The standard property deductible per occurrence on a commercial package policy is

ACV of what was stolen, with limits for certain classes of property

Theft coverage under an HO-8 is restricted to

2 weeks

Under the additional living expenses coverage, if a civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's policy, loss would be covered for up to

Insurance

What do individuals use to transfer their risk of loss to a larger group?

up to $1,000 per occurence

Which of the following best describes the amount of loss assessment coverage included under a homeowners policy liability coverage section?

Owned watercraft 53 feet long

Which of the following watercraft will NOT be covered by business liability insurance?