Other Personal Lines Policies

The regular National Flood Insurance Program would insure an eligible single-family dwelling for up to...

$250,000

Annual transit policies are written on what kind of basis?

Named peril

The standard fire policy only covers those perils specified in the policy, for that reason it is known as a(n)...

Named peril policy

Jack and Jill each own a 50% interest in a dwelling that is insured under a standard fire policy issued to Jill to cover her interest in the structure. The amount of insurance is $40,000. Following a $10,000 fire loss to the structure, Jill will receive...

$5,000

Johanna purchased a National Flood Insurance policy 10 days after her community entered an emergency program. When would her coverage be effective?

12:01am the day after the application and premium payment are mailed (During the first 30 days after a community enters the emergency or normal programs, coverage on a flood policy begins at 12:01am the day after application and premium payment have been mailed)

How long is the waiting period after the application has been accepted before flood coverage goes into effect?

30 days

During a house fire, an insured moves an antique chair listed on the policy to a storage unit. In the Standard Fire Policy, how many days will the antique chair be covered at the new location?

5 days

Removal coverage under a standard fire policy remains in effect for...

5 days

The standard fire policy specifically exclude losses which occur when a building is vacant or unoccupied for...

60 days or more

Which amount is figured by subtracting depreciation from the replacement cost of a covered item?

Actual cash value

Which of the following would be considered causes for flood conditions covered by the National Flood Insurance Program?

All of the above could be considered flood sources (Overflow of inland or tidal waters, unusual and rapid accumulation or runoff of surface waters from any source, or mudflow)

A Boatowners policy covers...

All of these (Property, liability, and medical payments)

If an insured has an umbrella liability policy in addition to his personal auto policy, which would be considered the underlying policy?

Auto policy

All of the following statements regarding a Boatowners policy are true EXCEPT...

Automatic coverage is provided on replacements for the boat listed in the declarations provided the insured notifies the insurer within 60 days of purchase and pays any additional premium required (it should be 45 days)

Standardized umbrella policies are available in which of the following forms?

Both personal lines and commercial lines

All of the following are classes of inland marine risks EXCEPT...

Common carrier cargo liability

Which of the following is NOT true about earthquake coverage?

Coverage is commonly provided through a federally-funded program

Which of the following terms best describes a trembling or shaking of the earth that is volcanic or seismic in origin?

Earthquake

What type of coverage do umbrella policies provide?

Excess coverage over an underlying or primary policy

A state-established program that requires insurers who write property insurance to accept risks in economically depressed areas in the same proportion as their other business bears to the total property insurance market is called the...

Fair Access to Insurance Requirements plan

The Standard Fire Policy would provide coverage in which of these cases?

Fire

Which of the following statement is NOT true regarding a personal umbrella liability policy?

It provides errors and omissions coverage for an agency (Errors and omissions coverage is provided only in a professional liability policy)

According to the Nationwide Marine definitions, risks that may be the subject of inland marine insurance include all of the following EXCEPT...

Large pleasure boats

Larry invites his neighbors out for a day on the water in his boat powered with a 150 hp outboard. While attempting to tie the boat to dock, his neighbor's hand is broken when caught between the boat and dock. What coverage would apply to the broken hand?

Larry's Boatowners policy (Boatowners policies contain property, liability, and medical payments)

A property with which of the following deficiencies would be eligible for the California FAIR Plan?

Located in a designated hazardous brush area

All of the following are excluded from coverage under a standard fire policy EXCEPT...

Manuscripts and bullion

What type of property does a Personal Floaters policy cover?

Movable personal property, wherever it may be located

Joe lit a fire in his fireplace and left it unattended. He had failed to check to see if the flue was open, so the smoke entered the house and discolored the walls, ceiling, and drapes. Joe also had to hire a company to remove the smoke odor. The total expense of cleaning and repainting was $6,000. How much would Joe's Standard Fire policy pay?

Nothing (Friendly fires and smoke from friendly fires are not covered)

All of the following are TRUE statements regarding the requirements of an insurer to offer earth movement coverage in California EXCEPT...

Only authorized agents which hold an "earth movement certificate" through the department of insurance are able to market residential property insurance which provides coverage for earth movement (No additional certificate is required to market earth movement coverage)

The Standard Fire Policy is a named perils contract, which means...

Only perils listed in the policy are covered

An outboard boat and motor policy covers...

Physical damage

Who would participate in a Write Your Own (WYO) flood insurance program?

Private insurers that wish to write and service National Flood Insurance policies on a no risk-bearing basis

In a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverage is called...

Self-insured retention

Which of the following would NOT be considered a flood?

Sewer backup

To be eligible for coverage under the National Flood Insurance Program, an insured must live in which of the following communities?

That has met the minimum floodplain management guidelines

The conditions of the Standard Fire Policy addressing the rules, duties, and provisions of the insured and the insurer are found in...

The 165 lines of conditions

All of the following statements are TRUE regarding the California Earthquake Authority (CEA) EXCEPT...

The CEA is authorized to transact insurance to sell residential earthquake and any other insurance coverage as necessary (The CEA is only authorized to sell earthquake insurance)

When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays...

The excess over the self-insured retention

What is the deductible of a personal liability umbrella policy called?

The SIR (Self-Insured Retention)

Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy?

The insured would be responsible for the amount required as underlying limits in the event of a claim

The New York Standard Fire Policy is classified as "Standard" because...

The policy conditions are identical in every state

All of the following are eligibility requirements for the FAIR plan EXCEPT...

The property must be located in a riot-prone area

Which of the following is true regarding single dwellings that are insured to at least 80% of the replacement value?

They are automatically provided with replacement cost coverage

Even though the Standard Fire Policy is a named peril contract, under which of the following circumstances would the policy provide "all risk of loss" coverage on insured property?

When the loss is to insured property that has to be removed because of endangerment by a peril insured against under the policy (up to 5 days)