homeowners insurance

Under the HO-3 policy, the maximum coverage limit available for boats and trailers lost due to theft is:

$1,500

How much is covered under a Homeowner Policy for charges made as a result of a stolen credit card? Note: This question does not apply to New York where the limit is different than the standard HO forms.

$500

The Homeowners policy provides a special limit for Damage to Property of Others in the Section II (liability) Additional Coverages of:

1,000

the standard minimum limit is ____ per person per occurence coverage f ll pay for the following if claimed within _____

1,000, 3 years

personal property at self-storage facilities is limited to _____ whichever is greater of the personal property limit.

10% or 1,000

Who is an insured under the liability section of a farm policy?

A Farm Stand Employee.

Under Section II of the Homeowners Policy which of the following would be covered under Medical Payments Coverage?

A neighbor helping the insured to lay carpet.

Under the farm property form with replacement cost coverage, after the first $1,000 how is the claim paid?

ACV until repairs are completed and then the full replacement cost is paid

How are losses settled under a typical inland marine policy?

Actual Cash Value.

Plumbing under the kitchen sink of an insured's condominium comes loose and leaks water all over the floor. The repair person has to tear out the floor under the sink to repair the hose. The cabinet is also damaged. What would the insured's HO-6 cover?

All of the loss is covered except the hose

Miranda's home is covered under a Homeowners policy with an Earthquake Endorsement attached. She has selected the base deductible of 5% and her limit of liability under Coverage C is greater than Coverage A. Her Coverage C limit of liability is $1,000. What is the deductible that Miranda will have to pay

Although 5% multiplied by $1,000 is $50, the endorsement states that the deductible will never be less than $500

Sally's home is covered under an HO-3 policy. Coverage F of that policy will pay medical expenses for which of the following?

Anyone who is invited onto Sally's property and is injured while there..

With a Commercial Package Policy (CPP), "interline endorsements" are endorsements that:

Apply to more than one coverage part of the package policy. .

Which of the following perils are covered under an unendorsed Standard Fire Policy?

Fire and lightning

The mobile home coverage endorsement can be added to a Homeowner policy to include the perils of transportation. Which is not one of those perils covered during the course of transportation?

Flood

A building insured under a Commercial Property policy suffers a fire and it is obvious that the building is underinsured. The policyholder demands payment for the entire loss on a replacement cost basis. The insurance company can:

Pay only the actual cash value of the lost or damaged property or apply the coinsurance clause.

Under the terms of homeowner policies, which of the following is a mortgagee permitted to do if the insured fails to pay his or her homeowner policy premium?

Pay the premium for the insured.

The HO-6 policy provides full replacement cost coverage if it is rendered a total loss by fire, EXCEPT: The structure portion occupied by the insured as a residence Improvements and betterments made to the structure by the insured Structures owned by the insured other than the residence Replacement cost coverage does not apply under the HO-6 form

The HO-6 condominium policy does not provide coverage for the structure. It insures the interior furnishings and contents and provides liability protection to the condominium owner. Separate structures such as a private garage would be covered for replacement cost coverage if added to the policy. Replacement cost coverage would have to be added separately to cover the contents.

In which part of an insurance contract would you expect to find a description of the duties and obligations of the insured

The conditions clause spells out the duties and obligations of the parties to the contract.

In case of a paid loss, who is entitled to the salvage under the Standard Fire Policy?

The insurer.

When an insured cancels a Homeowners policy before the renewal date, the unearned premium (UEP) is returned to the insured on a short-rate basis. Which of the following is true when a short-rate cancellation occurs? The insurer is permitted to retain a higher percentage of the UEP than when the insurer cancels the policy. The insurer must return only 50% of the premium the insured has paid. The insurer must return 100% of the premium the insured has paid. The insurer is permitted to retain a smaller amount of the UEP with a short-rate cancellation than with a mid-term cancellation.

When an insured cancels a Homeowners policy before the renewal date, the insurer is permitted to retain a higher percentage of the UEP than when the insurer cancels the policy. The amount of the short-rate premium return is usually determined by a table within the policy itself.

HO-5

comprehensive form, open peril coverage on both dwelling and personal property.

Which of the following losses to perishable stock would be covered by the commercial property Spoilage Endorsement? Power Outage Mechanical Breakdown or Contamination Changes in temperature, humidity, or contamination resulting from a power outage on or off the premises All of the responses are correct

d

Which of the following is not covered under the HO forms? A self propelled missile or spacecraft or earthquake.

earthquake

additional coverages for homeowners policy \\

edebris removal, resonable repairs, trees, shrubs and other plants, fire department service charge, property removed,

HO-3

most frequently cover for single family dwelling. combination of broad perils for personal property and open peril for dwelling.

HO-4

personal property Broad form from renters. named perils.

HO-8

very basic peril. covers some named perils

Under a Homeowner Policy (HO-5), if the insured carries 80% to value, what does Replacement Cost Coverage NOT apply to?

Contents

the differences in coverage between an HO-3 and an HO-5

HO-3 covers personal property on a named peril basis, while personal property under an HO-5 is covered on an open peril basis..

The Commercial Articles Coverage Form is designed to cover:

Musical instruments and related equipment; cameras and related equipment

limits of section 1- property coverage

coverage a( dwelling)- full replacement cost if carries 80% coverage b(other structures)- 10% of coverage a for one or two family dwelling 5% of three or four family dwelling coverage c (personal property)- 50% of coverage a for 1 or 2. 30% for 3 or 4 family dwellings Coverage (loss of use)- 30% of cov a on HO-2,3, and 5. 30% od COv c on HO-4, 50% cov c on HO-6. and 10% on HO-8

section 1

coverage a- dwelling coverage b- other structures coverage c - personal property coverage d- loss of use (indirect losses)

section 2

coverage e - personal liablity coverage f- medical payments to other

loss settlement condidtions

personal property- actual cash value basis building and other structures replacement cost basis if 80%

the standard minimum for personal liability coverage is

100,000 per occurence

An insured has received actual cash value payment from the adjuster for a covered loss. At the time he is satisfied with the payment. He later changes his mind and wants the full replacement value. How many days does he have to submit the receipts to get the replacement cost payment under a HO-3 form?

180 days

special limits of liability

200 for money, bank notes, bullioin, gold and silver 1,500 f0r securities 1,500 watercraft 1,500 trailers 1,500 theft of jewerly, watch furs 2,500 firearms 2,500 theft of prwterware 2,500 property on residents premises 1,500 property off premises 1,500 electronic equipemt 250 for tapes

A certificate of prelicensing course completion for West Virginia agent/producers is valid for _____ from the completion date of the course.

4 month

gravemarkers

5,000

The standardized Homeowners forms provide ______ for Fire Department Service Charge.

500

standard deductiible for section 1

500

Miranda's home is covered under a Homeowners policy with an Earthquake Endorsement attached. She has selected the base deductible of 5% and her limit of liability under Coverage C is greater than Coverage A. Her Coverage C limit of liability is $1,000. What is the deductible that Miranda will have to pay?

Although 5% multiplied by $1,000 is $50, the endorsement states that the deductible will never be less than $500.

All of the following are included under the HO-3 "additional coverages" section of a Homeowners policy, EXCEPT: Debris removal. Fire Department Service Charge. Loss from specified perils to trees, shrubs and plants. Loss of a good renter or a favorable lease arrangement.

D

The maximum payable for damage or loss to signs attached to the building covered under an ISO standardized Businessowners policy is:

Damage or loss to a sign attached to the building is limited to $1,000 even though it is attached to the building and considered part of the building. Some students confuse this with the additional coverage that is optional and coverage may be added for signs NOT attached to the building for $2,500

Which of the following would be covered under Section II - Liability of the Homeowner policy?

Damage to rented premises occupied by the insured caused by a fire accidentally set by the insured..

Which statement best describes "defense" coverage under the Section II - Liability coverage of the Businessowners policy?

Defense coverage is not subject to a policy limit. The insurer can spend whatever it desires in the defense of a claim and it has no effect on the policy limit.

An "other insurance" clause is included in an insurance policy to deal with the problem of:

Duplicate insurance coverage.

HO-3 Dwelling Personal Property

Dwelling: open peril Personal Property:

What coverage might a self-insured employer purchase to cover Workers Compensation claims that exceeded their plan's pre-established limits?

Excess insurance

Under business income coverage, what coverage continues payment of income after the period of restoration is complete?

Extended Business Income

the homeowner policy forms:

HO-1 : basic form HO-2 : broad form HO-3 : special form HO-4 : contents broad form also known as the tents or renter form HO-5 : comprehensive form, provide open peril coverage for buildings and contents HO-6 : condominium unit-owner form HO-8 : modified coverage form cover only the most common perils

The plumbing in Mrs. Jones' home suddenly burst and the ceilings were damaged by water. All of the following Homeowners forms would cover the loss, EXCEPT an HO-2 form. HO-8 form. HO-3 form. HO-5 form.

HO-8

collaspe cover direct physical loss to covered property except

HO-8

The Watercraft Endorsement to the Homeowners policy provides:

Liability and Medical Payments coverage that would otherwise be excluded under the Homeowners policy..

The Commercial Building and Personal Property form automatically provides which of the following extensions of coverage?

Newly acquired property. There are 5 extensions of coverage under this form IF the provisions of the co-insurance clause were met. They are: Newly acquired or constructed property; personal effects and property of others; valuable papers and records; property off premises and outdoor property. Note that these are very limited in scope of coverage.

A daughter is attending college and her family carries a tenant's homeowner policy HO-4 with $50,000 contents coverage. The daughter has about $15,000 of personal belongings consisting of clothing, musical instruments and electronic equipment, some appliances and other personal items. Which is the form to use to cover her property exposures?

Personal property form. The Homeowner policy limit extensions would not provide the coverage she would need. The best inland marine form for her would be the personal property form.

An insured purchases two homeowner policies from two different insurance companies. If a covered loss occurs, on what basis will the loss be settled by each of the insurers?

Pro rata basis

Claims paid under which of the following will reduce the aggregate limit under the Commercial General Liability policy?

The Per Occurrence Limit. Claims paid under this limit are deducted from the aggregate limit and the remaining amount is all the insured has available for future occurrences until the policy is renewed. Liquor and Pollution Liability coverage is excluded under the CGL. The retroactive date "triggers" coverage and has nothing to do with the policy limits and how much will be paid on the loss.

Axel Jamison contacts an insurance agent to purchase a Homeowners policy. The agent advises Axel that he will stop by later that day to inspect the home and take the policy application. Before the agent arrives, Axel hides his collection of venomous snakes and does not disclose them on his policy application. The Homeowners policy, with personal liability coverage is issued later that week, and the next day a snake escapes and bites a neighbor. How will the adjuster handle this claim?

The claim will be denied because Axel is guilty of concealment

Under a dwelling policy (DP-2 or DP-3), what is the maximum that would be paid for additional living expenses if Coverage A was $60,000?

The form provides 20% for additional living expenses and fair rental value. Therefore the policy would pay up to $12,000. (Note: In North Carolina the percentage is 10%.)

A Homeowners Form has a $50,000 personal property limit. Disregarding any deductibles, what is the most the insured can collect if a boat valued at $1,500 is stolen from the premises?

The insured can collect up to $1,500 because of the "special limits" that apply to watercraft. An insured could collect this full amount even when the deductible is factored in. For example, if a policyholder had a deductible of $500 and a covered loss to watercraft valued at more than $2000, they could collect a maximum of $1500. Theft of watercraft off the insured's premises is covered only under the HO-5 form.

Robert boards his dog at a kennel while he is on vacation. While at the kennel, the dog bites a meter reader. How would Robert's HO-3 policy respond to the meter reader's request for repayment of his emergency room costs?

The insurer will pay for necessary emergency room expenses under the Medical Payments to Others provision.

HO-1

basic, named peril covers lightingm wind, hail storm, explosion, riots, or civil unrest, aircraft, vehicula dmage, and volcanic eruption

HO-2

broad, named peril. Fire, lighting, windstorm or hail, explosion, riot or civil commotion, aircraft, vehicular damage, smoke, VMM, theft, volcanic eruption, falling objects, weight of ice and snow, accidental discharge of water or steam, sudden and accidental tearing apart, freezing, sudden an accidental damage from electrical current

additional coverages under section 2

claims expenses- limit 250 per day first aid damage to property of other- pay up to 1,000 for accidentla damage

HO-6

condominuim structural proportion of condo. named peril.

The Homeowners policy on Dylan's $110,000 home is voided when he intentionally burns the house to the ground. Consequently, he does not receive the settlement check he was hoping to when he committed the arson, but he still has an outstanding mortgage balance of $76,000. How does this event affect the mortgage lender?

the insurer pays the mortgage lender $76,000