Unit 7 quiz questions

Which of the following is excluded under Coverages E and F? A. 30hp outboard watercraft B. 20ft sailing vessel C. boat on land in storage D. nonowned boat

A. 30hp outboard watercraft

For all forms except HO-4 and HO-6, the primary amount of the insurance is A. Coverage A B. Coverage B C. Coverage C D. Coverage D

A. Coverage A

Which of the following coverage limits does NOT have special theft only limits? A. Money B. Jewelry C. Silverware D. Firearms

A. Money

Except for the HO-8, under an unendorsed homeowners policy, losses to the dwelling and other structures are paid on A. replacement cost value (rc) B. repair cost basis C. depreciation basis D. actual cash value (acv)

A. replacement cost value (rc)

All of the following statements about Section II of the homeowners policy are correct EXCEPT A. the base personal property limit for any one occurrence is $250,000 B. Section II is the same in all homeowners policies C. Coverage F pays all necessary medical expenses incurred within 3 years of an accident that causes BI D. Coverage E and Coverage F are the two major coverages in Section II

A. the base personal property limit for any one occurrence is $250,000

Under the cancellation condition, during the first 60 days, the insurance company can cancel for any reason as long as they give A. 5 days' written notice B. 10 days' written notice C. 30 days' written notice D. 45 days' written notice

B. 10 days' written notice

David's roof was damaged on his garage when a tree fell during a thunderstorm. He removed his property from the garage to a storage facility to protect it from getting destroyed. This property, although off the premises, will be covered for A. 15 days B. 30 days C. 45 days D. 90 days

B. 30 days

Under the homeowners policy, which of the following classes of personal property have special limits for theft losses, but not for any other type of losses? A. Money B. Firearms C. Watercraft D. Property used for business purposes

B. Firearms

Broad peril coverages include all of the basic perils and all of the following EXCEPT A. Falling objects B. Flooding and overflow from a sump pump C. Weight of ice D. Freezing of plumbing

B. Flooding and overflow from a sump pump

Which of the following liability endorsements provides coverage for libel, slander, false arrest, invasion of privacy, and malicious prosecution? A. Business Pursuits Endorsement B. Personal Injury Endorsement C. Permitted Incidental Endorsement D. Bodily Injury Endorsement

B. Personal Injury Endorsement

Losses to personal property, awnings, carpeting, appliances, outdoor antennas, outdoor equipment, and structures that are not buildings are paid at A. replacement cost (rc) B. actual cash value (acv) C. depreciation rate D. limits of insurance

B. actual cash value (acv)

What is the standard liability limit for Coverage E? A. $100,000 lifetime limit B. $100,000 aggregate C. $100,000 per occurrence D. $250,000 per occurrence

C. $100,000 per occurrence

Which of the following theft losses would be completely covered if the loss were for the full value of the property? A. $300 worth of coins from the insured's coin collection B. $3000 laptop computer that is used in the insured's accounting business C. $2,000 silver set D. $5000 diamond ring

C. $2000 silver set

Which of the following losses is NOT excluded in all homeowners forms? A. Earthquake damage to a home B. Flood damage to a home C. Accidental and sudden discharge of water from a plumbing system D. An area power failure that shuts down power for 12hrs and causes the insured's food to spoil in a refrigerator

C. Accidental and sudden discharge of water from a plumbing system

Damage to property of others is an additional coverage that pays up to how much for property damaged or destroyed by the insured? A. $2500/occurrence B. $2000/occurrence C. $1500/occurrence D. $1000/occurrence

D. $1000/occurrence

Which of the following perils is NOT included in the basic form? A. Theft B. Volcanic eruption C. Smoke D. Accidental discharge of water

D. Accidental discharge of water

Which of the following is NOT an additional coverage included in all homeowners forms? A. Debris removal B. Reasonable repairs C. Trees, shrubs, and other plants D. Building addition

D. Building addition

Which of the following is NOT specifically excluded from Coverage C of the homeowners policy? A. animals B. credit cards C. motorized vehicles D. property of a guest

D. property of a guest

Which of the following perils is covered in all homeowners forms? A. freezing of pipes B. weight of ice, snow, and sleet C. falling objects D. smoke

D. smoke

All of the following classes of personal property are specifically excluded from homeowners coverage EXCEPT A. animals B. clothing C. property of boarders D. credit cards

B. clothing

Thomas wants the maximum comprehensive protection for his home and personal property. Which homeowners policy should he purchase? A. HO-1 B. HO-2 C. HO-5 D. HO-8

C. HO-5

Which of the following is not one of the 9 major categories of valuable property that are used in the scheduled personal property endorsement? A. musical instruments B. golf equipment C. antique car collection D. postage stamps

C. antique car collection

The homeowners policy provides property and liability coverage in a single policy. For this reason it is called a A. double line policy B. monoline policy C. multiline policy D. modified policy

C. multiline policy

Which of the following covers damages that the insured is legally obligated to pay because of BI or PD? A. Coverage B B. Coverage C C. Coverage D D. Coverage E

D. Coverage E

Which homeowners policy form insures the tenants in a rental property? A. HO-1 B. HO-2 C. HO-3 D. HO-4

D. HO-4

Which of the following statements is NOT correct regarding the eligibility of insured's under a homeowners policy? A. The named insured must be the owner-occupant of the dwelling or a renter who maintains a residential occupancy B. the dwelling must be permanently used as a residency C. Dwellings under construction are eligible D. The home cannot contain more than 2 families

D. The home cannot contain more than 2 families

Under an unendorsed HO-3, losses to personal property are paid on A. replacement cost B. repair cost C. depreciation D. actual cash value

D. actual cash value