front 1 Which of the following statements is (are) true regarding renters insurance?
| back 1 Answer: D |
front 2 Which of the following statements about eligibility requirements for homeowners insurance is (are) true?
| back 2 Answer: B |
front 3 Which of the following statements about the Homeowners 6 (unit-owners form) policy is true?
| back 3 Answer: A |
front 4 Which homeowners policy is designed for the tenants of a rented premises?
| back 4 Answer: B |
front 5 Which of the following statements about the Homeowners 8 policy is (are) true?
| back 5 Answer: D |
front 6 Which of the following statements about the Homeowners 3 policy is (are) true?
| back 6 Answer: D |
front 7 The major difference between the dwelling coverage (Part A) of the Homeowners 2 (Broad From) policy and the Homeowners 3 (Special Form) policy is that
| back 7 Answer: A |
front 8 Persons insured under Section I of the Homeowners 3 policy include which of the following?
| back 8 Answer: C |
front 9 Section I of the Homeowners 3 policy provides coverage for which of the following?
| back 9 Answer: A |
front 10 All of the following are covered under the dwelling coverage (Coverage A) of the Homeowners 3 policy EXCEPT
| back 10 Answer: B |
front 11 Which of the following statements about the coverage for other structures (Coverage B) under the Homeowners 3 policy is true?
| back 11 Answer: A |
front 12 All of the following losses are subject to special limits of liability under the Homeowners 3 policy EXCEPT
| back 12 Answer: D |
front 13 Which of the following statements about the personal property coverage (Coverage C) of the Homeowners 3 policy is (are) true?
| back 13 Answer: C |
front 14 The Homeowners 3 policy limits the amount of coverage provided on certain personal property (e.g. coin collections and silverware). This personal property can be adequately insured by
| back 14 Answer: C |
front 15 Which of the following property is covered under the personal property coverage (Coverage C) of the Homeowners 3 policy?
| back 15 Answer: B |
front 16 Which of the following statements about coverage for loss of use (Coverage D) under the Homeowners 3 policy is true?
| back 16 Answer: A |
front 17 Which of the following statements about the additional coverages under Section I of the Homeowners 3 policy is true?
| back 17 Answer: A |
front 18 All of the following are additional coverages under Section I of the Homeowners 3 policy EXCEPT
| back 18 Answer: C |
front 19 Which of the following is a covered peril under the personal property coverage (Coverage C) of an unendorsed Homeowners 3 policy?
| back 19 Answer: C |
front 20 Which of the following losses to a dwelling would be covered under an unendorsed Homeowners 3 policy?
| back 20 Answer: C |
front 21 Which of the following statements about covered perils under the personal property coverage (Coverage C) of the Homeowners 3 policy is true?
| back 21 Answer: A |
front 22 Which of the following types of water damage is covered under an unendorsed Homeowners 3 policy?
| back 22 Answer: D |
front 23 Which of the following is a general exclusion under Section I of the Homeowners 3 policy? A) Water damage caused by accidental discharge from a household appliance.
| back 23 Answer: B |
front 24 Which of the following is (are) included among the duties of an insured following a loss covered under the Homeowners 3 policy?
| back 24 Answer: C |
front 25 Which of the following statements about the replacement cost provision of the Homeowners 3 policy is true?
| back 25 Answer: B |
front 26 David has a Homeowners 3 policy that provides $280,000 of insurance on his dwelling, which has a current replacement value of $400,000. Ignoring any deductible, how much will David collect if a roof with a replacement value of $16,000 but an actual cash value of $10,000 is destroyed in a fire?
| back 26 Answer: C |
front 27 Which of the following statements about the appraisal clause in the Homeowners 3 policy is (are) true?
| back 27 Answer: B |
front 28 Under the Homeowners 3 policy, all of the following are options of the insurer for settling claims EXCEPT
| back 28 Answer: D |
front 29 All of the following are duties of the mortgagee under the standard mortgage clause EXCEPT
| back 29 Answer: A |
front 30 All of the following statements about the cancellation of a Homeowners 3 policy are true EXCEPT
| back 30 Answer: B |
front 31 All of the following statements about conditions under a Homeowners 3 policy are true EXCEPT
| back 31 Answer: D |
front 32 Cal is renting an apartment. Which homeowners policy is specially designed to insure renters?
| back 32 Answer: C |
front 33 Shauna purchased a condominium unit. Which homeowners policy is specially designed for condominium unit owners?
| back 33 Answer: D |
front 34 Michelle had four matching end tables in her home. A fire damaged the home, destroying two of the end tables. Michelle's home was covered by an unendorsed Homeowners 3 policy. Which of the following is true with regard to the settlement for the end tables in this case?
| back 34 Answer: B |
front 35 Betty's personal property is insured for $100,000 under her Homeowners 3 policy. If she usually keeps some personal property at a mountain cabin that she owns, how much coverage for this property is available under her homeowners policy?
| back 35 Answer: A |
front 36 Linda wants to purchase a homeowners policy. She has some valuable personal property to which internal policy limits apply. Her agent said that she could obtain coverage under her homeowners policy by attaching a list of this valuable property with specific amounts of insurance. Such a listing is called a(n)
| back 36 Answer: B |
front 37 Which of the following is an additional coverage provided under Section I of the Homeowners 3 policy?
| back 37 Answer: B |
front 38 Darla purchased an unendorsed Homeowners 3 policy. While the policy was in force, a fire occurred that destroyed a living room set. The living room set cost $4,000 new, but was 25 percent depreciated when the loss occurred. Replacement furniture will cost $4,400. Assuming no deductible, how much will Darla receive from her insurer?
| back 38 Answer: B |
front 39 A dwelling with a replacement cost of $150,000 was insured under a Homeowners 3 policy for $100,000 at the time the roof was destroyed by a windstorm. The actual cash value of the loss was $9,000, but it will cost $12,000 to replace the roof. Ignoring any deductible, what will the insurer pay to settle this loss?
| back 39 Answer: C |
front 40 Ellen believes the value of the loss to her home is $30,000. The insurer has offered $18,000 to settle the loss. If Ellen and the insurer cannot agree on the value of the loss, which homeowners policy provision specifies how this dispute will be settled?
| back 40 Answer: B |
front 41 Ted borrowed $140,000 from ABC Bank to purchase a home and pledged the home as collateral for the loan. Shortly after purchasing the home, Ted lost his job. He could not find another job and could not pay the monthly mortgage. Ted set fire to the home. The claims adjuster suspected arson, and an investigation proved that Ted intentionally caused the loss. Under the mortgage clause of the Homeowners 3 policy, how will this loss be settled?
| back 41 Answer: D |
front 42 Mike and Susan built their "dream home." They insured their home for its full replacement cost. They also added an endorsement that will pay up to an additional 20 percent of the policy limit in case the cost of rebuilding the home after a loss is greater than the policy limit. The basis under which Mike and Susan insured their home is called
| back 42 Answer: C |
front 43 Jose and Maria would like "open-perils" coverage on their home and their personal property. Which unendorsed homeowners form provides this coverage?
| back 43 Answer: D |
front 44 Which of the following statements about covered perils and loss settlement under an unendorsed Homeowners 3 policy is true?
| back 44 Answer: B |
front 45 Which of the following statements is (are) true regarding how the Homeowners 3 policy handles the peril of collapse?
| back 45 Answer: B |
front 46 Following catastrophic hurricane losses, South Coast Insurance Company changed its deductible provision. Rather than using a specified dollar value, $250 for example; the dollar value of the deductible increases with the size of the loss. The type of deductible that South Coast changed to is called a(n)
| back 46 Answer: D |
front 47 If there is a conflict between state law and a provision in a homeowners policy,
| back 47 Answer: B |
front 48 A fire destroyed the home next door to Brad's home. The fire department chief was concerned that the damaged home would collapse on to Brad's home, so he ordered Brad to evacuate his home. Which of the following statements is true concerning the cost of Brad's hotel room while he is complying with the fire chief's order?
| back 48 Answer: C |
front 49 The homeowners policy excludes a loss brought about by two or more perils where one peril is covered under the policy and the other perils are excluded. This situation is called
| back 49 Answer: C |
front 50 One additional coverage under the homeowners policy makes available up to 10 percent of the Coverage A limit to cover increased repair costs after a loss in order to comply with a stricter building code. This additional coverage is called
| back 50 Answer: A |
front 51 Brian purchased an unendorsed Homeowners 3 policy. Under the policy, Brian's detached garage is also covered. Which of the following statements regarding coverage on the garage is true?
| back 51 Answer: C |
front 52 Which of the following statements concerning the coverage of collapse of the dwelling under an unendorsed Homeowners 3 policy is true?
| back 52 Answer: B |
front 53 If the insurer broadens coverage during the policy period without an increase in premium, and the broadened coverage is not part of a general program revision, the insured is entitled to the broadened coverage under which policy provision?
| back 53 Answer: C |
front 54 Several different values can be considered when determining how much insurance should be carried on a dwelling (the Coverage A limit of the Homeowners 3 policy). The appropriate value that should be used is:
| back 54 Answer: D |
front 55 The concurrent causation exclusion in the Homeowners 3 policy specifies that:
| back 55 Answer: A |
front 56 The purpose of the appraisal clause in the Homeowners 3 policy is to
| back 56 Answer: C |
front 57 Glenda insured her home for its full replacement cost under an unendorsed Homeowners 3 policy. Which of the following statements is true?
| back 57 Answer: D |
front 58 Which of the following statements concerning coverage under the Homeowners 3 policy is true?
| back 58 Answer: B |