Unit 9 (Miscellaneous Personal)
Yacht policies provide physical damages and liability coverage. What is the liability section called?
protection and indemnity insurance
Under the emergency flood program, the standard deductible is $2,000. What is the standard deductible under the regular program?
$1,000
What is the minimum deductible for a single family dwelling insured as a preferred risk in the regular flood program?
$1000 each for building and contents
An insured has $300,000 of primary insurance and excess liability coverage of $1,000,000. If the insured has a $350,000 claim, how much will the excess liability policy pay?
$50,000 (pays additional coverage when a claim exceeds an underlying policy's insurance limits)
What is the most coverage available for a single family dwelling covered under the REGULAR flood program?
Building - $250,000 Contents - $100,000 (Emergency = $35K building $10K contents)
What are the 2 flood insurance programs that are available?
Emergency program and the regular program
Who administers the National Flood Insurance Program NFIP)?
Federal Emergency Management Agency (FEMA)
Which form is designed for individuals and families who want to insure their personal belongings while traveling?
Personal effects form
Which of the following property may be insured under a flood policy issued by the NFIP? -automobile -fence surrounding insureds property -trees -silos
Silo
The boatowners policy provides liability and physical damage coverage. What is the value and size of a boat eligible for the boatowners policy?
The value is less than $25,000, the watercraft is less than 26' in length, or both
What does NOT accurately describe a personal umbrella policy?
Umbrella policies provide additional property and liability insurance coverage limits
Which of the following provides additional liability insurance over and above the auto, homeowners, or boat policy? -a personal umbrella policy -a supplementary policy -an extra insurance policy -a self-insured retention limit
a personal umbrella policy
Which of the following would NOT be excluded in a personal watercraft policy? -a 25 foot speed boat is used in an official race 3 times a year -a personal boat is used as a charter boat on the weekends for a fee -a personal boat is used for entertaining family and friends -a pontoon boat is used to transport business property across a lake
a personal boat is used for entertaining family and friends
In a boatowners/watercraft policy, losses are usually paid on
an actual cash value basis
The scheduled personal property endorsement provides a separate schedule of insurance for all of the following categories EXCEPT -camera equipment -belongings while traveling -musical instruments -jewelry
belongings while traveling
self insured retention limits work like a
deductible
Premium credits for all of the following will lower the insurance premiums for the owner of a mobile home EXCEPT: A) reducing Coverage C limit to 40% of Coverage A. B) installing insurer-approved alarm system, fire system, or both. C) installing an automatic sprinkler system. D) tie-down credit.
reducing coverage C limit to 40% of coverage A
What is the standard deductilbe under the emergency program of the national flood insurance program?
$2,000
Sandra's jewelry collection is insured for $10,000 under a personal articles form. If she buys a new watch valued at $2,500, how much coverage would the watch automatically have under the policy?
$2,500
Under the regular program, what are the maximum limits for flood insurance coverage on a residential building?
$250,000
Sue has a personal articles floater with $20,000 worth of jewelry coverage. She purchases a ring worth $6,000. The ring is stolen from her the following week. How much can she collect from her insurance carrier?
$5,000 (25% of $20,000)
The insured has a homeowners policy (HO-3) WITH A $100,000 liability limit and a $1 million personal umbrella policy with a self insured retention of $1,000. When a child is seriously injured on the insureds property, a jury awards the plaintiff $2 million. Given only these facts, for what amount is the insured personally responsible?
$900,000 (the underlying homeowners policy pays the first $100,000 and the umbrella would pay $1 million, which exhausts both limits) the insured pays the remaining balance of $900K
The personal articles floater provides coverage for all newly acquired property, except fine art, up to
30 days
When does flood insurance take effect?
30 days after the date of application and payment of premium.
Under the personal articles form, coverage for fine art is 25% of the applicable limit of insurance and applies for
90 days
Which of the following is NOT one of the requirements for a building to be eligible for coverage under a flood insurance policy? -building has walls and roof -building is fixed to permanent site -building is owner occupied -building is principally above the ground
building is owner occupied
personal articles form newly acquired property coverage applies for 30 days and the property is covered for 25% of the applicable limit of insurance or $10,000, whichever is less, for all of the following EXCEPT -fine art -jewelry -musical instruments -furs
fine art
Because they provide coverage that movies with the property to protect it worldwide, inland marine forms are sometimes called
floaters
what is NOT correct about the National Flood Insurance Program (NFIP)
flood insurance policies provide coverage for personal property real property and personal autos
All of the following regarding the mobile home package policy are correct EXCEPT -it may include collision coverage -it includes liability coverage similar to section II of the homeowners policy -up to 10% of the mobile home coverage can be extended to cover other structures -it covers the mobile home contents but not the mobile home itself
it covers the mobile home contents but not the mobile home itself
Which inland marine form provides open peril coverage for the same categories of property covered under the homeowners scheduled personal property endorsement?
personal articles form
Which inland marine form provides open peril coverage for the insureds personal property while traveling?
personal effects form
What is NOT correct about flood insurance?
personal property in a basement or outside in the yard is covered
Broader coverage for personal property can be obtained through all of the following policy forms EXCEPT -personal effects -personal inland marine -personal articles -personal valuables
personal valuables
Samuel and his wife retired and brought a 40-foot boat for $200,000. Which of the following policies are they most likely to purchase in order to insure this boat? -inland marine policy -personal yacht policy -watercraft package policy -boatowners policy
personal yacht policy
The term flood refers to all of the following EXCEPT -an overflow of inland tidal waters -collapse of land as a result of excessive erosion due to flood -mudslides -sewer backup
sewer backup
in a flood policy issued by the NFIP, all of the following would be considered a flood EXCEPT -collapse of land as a result of excessive erosion due to flood -sewer backup into a home -overflow of inland waters -mudslide
sewer backup into a home
Under the NFIP policy, losses to which of the following could be paid on a replacement cost basis? -personal property -single family homes -mobile homes -watercraft
single family homes
What are the only types of buildings that may be insured on a replacement cost basis under a flood program?
single-family dwellings
Which of the following is not specifically excluded from the personal effects floater? -artificial limbs -tickets -souvenirs -passports
souvenirs
What is NOT correct about mobile home insurance?
the HO-4 form can be used to cover the mobile home and the contents in the mobile home
Which of the following acts much like a deductible and is the amount of loss that the insured must cover out of pocket? -the self retention limit (SIR) -the excess liability coverage -the umbrella policy -the retention limit
the self retention limit
Which of the following statements regarding flood coverage is TRUE? -personal property in a basement or outside in the yard is covered -agents have the authority to bind coverage on the flood polices -the standard deductibles are $2000 under the emergency program and $1000 for the regular program -sewer backup into a dwelling is considered a flood and is not covered
the standard deductibles are $2000 under the emergency program and $1000 for the regular program
What is NOT correct about an umbrella policy?
they are written only for commercial risks
What is NOT correct about flood insurance coverage?
water damage from captures water is covered
