Property

Homeowners policies limit the amount of property and liability coverage available for boat owners. How much coverage is provided in the homeowners policy for damage to watercraft, accessories, equipment and trailers?

$1,500

Under Coverage E- Scheduled Farm Personal Property, livestock that is not specifically insured is limited to a coverage limit of

$2000 per head

Under business personal property- seasonal increase, if no percentage is specified in the declarations, seasonal fluctuations will automatically increase the limit for business personal property by

25%

An individual just applied for National Flood Insurance. How many days can she expect to wait before coverage is effective?

30 days

Homeowners policies consider all of the following insured locations except

A strawberry patch owned by the insured

Under coverage B- other structures, a homeowners policy provides coverage for other structures on the residence premises. Which of the following statements is not true of this coverage?

Any loss paid under coverage b reduces the coverage a limit of liability

Which of the following entities are eligible for a Businessowners policy

Convenience stores

Other than Phil's, the difference in the three DP forms is in coverage provided. Which of the following coverage options is covered by the DP-2, and DP-3 but not DP-1?

Coverage E- Additional Living Expenses

All of the following are optional endorsements that may be added to the standard equipment breakdown coverage form except

Debris removal

Under the farm property and livestock coverage forms, which of the following property is covered for loss by the perils of the earthquake or flood?

Farm animals

Premiums collected on behalf of the insurance company by an agent will be held in what capacity?

Fiduciary

To have insurance interest, what risk must the policy owner face?

Financial loss

According to the law of agency, insurance producers represent

Insurers

Which of the following is not true regarding the automatic increase in insurance endorsements in dwelling policies?

It does not require additional premium

Fair rental values coverage in the dwelling policy is similar to which homeowners policy forms?

Loss of use

An insurance policy form that lists specific covered perils provides

Named peril coverage

Among people in the same class and life expectancy, which of the following factors can be used to influence premium rates?

Occupation

How is premium paid for the Businessowners policy?

One indivisible premium

Which of the following types of property would be covered under Coverage C- Personal Property in a dwelling policy?

Rowboats

rates for earthquake coverage in property policies are generally determined by which of the following?

The type of construction

According to business property coverage form vacancy condition, if a policy is issued to owner of a building, the building will be considered vacant if what portion of the square footage is unused?

70%

How soon does the period of restoration for business income coverage begin after a direct loss?

72 hours

Which of the following covers the interest of a secured lender in personal property?

Loss payable clause

What coverage form in the farm policy insures equipment on an open peril basis?

Mobile agriculture machinery and equipment

Which statements is an accurate description of life insurance policy dividends?

They are not taxable and are not guaranteed

What is the purpose of the ordinance or law coverage endorsement?

To remove the exclusion of losses resulting from ordinances or laws

All of the following statements are true about earthquake coverage in property policies except

Coverage is commonly provided through a federally funded program

Which of the following would be covered under a building and personal property coverage form?

Outdoor sign

Which of the following statements is correct regarding the debris removal coverage under the Businessowners policy?

The insureds limit of liability is 25% of the sum of the direct loss payment plus the deductible amount

What kind of coverage does form DP-3 provide?

Open peril

Which of the following is consideration on the part of an insurer?

Paying a claim