Insurance Ch. 13
A homeowner's water pipe cracks due to freezing and begins to leak. The leakage damages the floor before flowing into the basement and causing further damage. The insured's HO-3 will cover:
the damage caused but not the cost of repairing the pipe.
The HO's Personal Property coverage applies to:
the insured's clothing.
While at the lake, my boat could be destroyed by fire, striking another boat, lightning, sinking, etc. If the boat is destroyed, my HO Insurer will pay a maximum of:
the policy limit.
The most a HO policy will pay for a liability slip and fall claim under Section II of the policy is:
the policy's limit of liability.
The insured's 14 year-old child intentionally damaged the neighbor's house. The Additional Coverages section of the HO policy will pay:
$0
The insured's 15 year-old intentionally vandalized the neighbor's car. Under the Damage to Property of Others coverage, the HO will pay:
$0
Four trees valued at $200, $500, $700 and $800 were destroyed by fire. The HO-5 will cover this loss to a total of:
$1,700.
The insured's 15 year-old child negligently rode her bike into the neighbor's house causing $1,800 damage. The HO policy will pay:
$1,800
If the insured's dog bites a jogger, the HO will pay a maximum of defense costs plus:
$100,000
While playing with fireworks, Smith's 16-year-old child negligently destroyed the neighbor's $250,000 home. Smith's homeowner's policy will cover the liability up to:
$100,000
In the evenings, Nancy runs a baby-sitting service in her home. She cheerfully babysits neighborhood kids because she loves the kiddies. She never charges for this service. If a child is injured in her home, Nancy's HO policy's Section II coverage limit for such a claim is:
$100,000.
Molly's HO-00-03 has a $250 deductible and $1,500 limit for theft of jewelry. Molly's jewelry is also covered by a Scheduled Personal Property Endorsement (that is, an Inland Marine floater) with a $2,500 limit of liability. If $4,000 worth of Molly's jewelry is stolen, she will recover a maximum of how much?
$2,500
To be eligible for a mobile home endorsement, the dwelling must be at least:
10 feet wide and 40 feet long
A Mobile Home policy covers a detached garage:
10% of A (with at least $2,000 coverage)
A Mobile Home policy covers the Insured's personal property:
40% of A
With a mobile home endorsement, personal property is covered to:
40% of A.
A Dwelling policy may be used if the structure has a maximum of how many boarders?
5
Vandalism damage to the exterior walls of a home won't be covered if the home has met the policy's definition of vacancy which is how many days?
60
The HO-2 provides vandalism coverage for a maximum of how many days after the beginning of the vacancy?
60 days
In the evenings, Jack runs a baby-sitting business in his home. Jack charges $380 per hour for babysitting kids. If a child is injured, the HO policy's Section II coverage limit for such a claim is:
: $0.
Which of the following is an insured under Section II of the HO policy?
: A resident minor in the insured's care, custody and control.
While on vacation, an insured suffered a fire loss to his personal property which he had taken with him on the vacation. His DP-3 will cover this loss in which manner?
: The loss will not be covered.
Section II of the HO policy provides liability coverage for:
Accidents
Section I of the HO covers each of these EXCEPT?
Bodily Injury Liability
The HO forms include a special limit for each of the following except:
Clothes
The HO's Personal Liability section covers:
Damage to the property of other persons.
The HO-3 may cover which of the following?
Dwelling under construction
A DP-3 covers:
Fire set by arsonists.
An HO-3 covers each of these EXCEPT:
Flooding.
Of the following, which provides the broadest coverage for the dwelling and contents?
HO-3
Which policy provides special coverage on the dwelling and broad form coverage on personal property?
HO-3
The HO policy which provides the best coverage for an owner who occupies a single-family home is the:
HO-5
Which Homeowners policy is used when the cost to rebuild the home would cost more than the market value of the home?
HO-8
Under a Pair or Set provision:
Loss of one will not be loss of all.
Section II of the HO policy covers:
Medical Payments
Which HO coverage does NOT have a deductible?
Personal Liability
The liability coverage under a HO is identical to the coverage under the:
Personal Liability Policy
A mobile home policy:
Provides Replacement Cost coverage.
The HO forms have a special limit (aka inside limit) for which of the following?
Silverware
The HO-3 covers which of the following
Vandalism if the structure has been vacant for 60 consecutive days.
Section I of the HO-3 covers trees, shrubs, and plants for loss caused by each of the following EXCEPT:
Wind
Which of the following boats owned by the Insured would be covered under the Insured's Homeowners policy?
a boat with a 20 horsepower outboard engine
Section II of a Homeowner Policy provides coverage for:
acts of the homeowner's dog.
The HO-5 policy provides:
both Coverage E (Personal Liability) and Coverage F (Medical Payments)
If the insured's dog bites a jogger, the HO's Bodily Injury Liability will pay for:
defense costs if the jogger sues.
A DP-1 (Dwelling Policy -1) covers each of the following EXCEPT:
earth movement
The wind blows the Insured's tree over, resulting in damage to the Insured's home and car. The Insured's HO-3 will cover the damage to the Insured's:
home
The HO's Supplementary (Additional) Payments pays:
in addition to the limits of liability.
A mobile home policy:
may provide Replacement Cost coverage for the structure if it is insured to 80% of replacement cost.
Under a Homeowner policy, abandonment is:
not permitted
After a burglary in a home covered by a HO-00-03 (HO-3), the insured must:
notify the police
For the dwelling, Mobile Home policies cover loss settlement:
on a Replacement Cost basis.
The HO's Medical Payments pays:
only up to the limit of liability.
A homeowner policy requires notice of a loss to be given to each of the following EXCEPT:
other insureds.
Under Section II of the HO policy, Med Pay will cover a claim:
regardless of liability.
If the insured is injured in her home, she will be compensated under:
Her health insurance policy, but not under the HO at all
Under the pair or set rule:
In no event will the loss of one item in the pair or set be considered to be the loss of all items in the pair or set.
Section II of the HO will cover each of these EXCEPT:
Injury to the insured's employee covered by Worker Compensation.
Which is true regarding the HO-8?
It was created because replacement cost is too costly for some homes.
Which of the following residents would be considered an Insured under the HO policy?
The insured's child.
