Homeowners Insurance, Section Ii

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Question 1
Free
Multiple Choice

All of the following persons are insured for personal liability under the homeowners policy EXCEPT

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A

children of the named insured under age 24 who are attending college full time and temporarily residing elsewhere.

B

foster children under the age of 21 who reside with the named insured.

C

nonresident employees of the named insured.

D

the spouse of the named insured if a resident of the same household.

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Question 2
Free
Multiple Choice

Persons insured for personal liability under the homeowners policy include which of the following?
I)Relatives while visiting the named insured.
II)Overnight guests who are not relatives of the named insured.

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A

I only

B

II only

C

both I and II

D

neither I nor II

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Question 3
Free
Multiple Choice

Which of the following statements about the personal liability coverage (Coverage E) of an unendorsed homeowners policy is true?

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A

Coverage is written on an accident basis.

B

Coverage is provided for bodily injury liability.

C

Coverage is provided for business and professional liability.

D

Coverage is provided for personal injury liability.

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Question 4
Free
Multiple Choice

Which of the following statements about the insurer's obligation to provide a legal defense under the personal liability coverage (Coverage E) of the homeowners policy is (are) true?
I) The insurer agrees to defend the insured only if the suit is not groundless, false, or fraudulent.
II) The insurer's obligation to defend the insured ceases after the amount paid for damages from an occurrence equals the policy limit.

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A

I only

B

II only

C

both I and II

D

neither I nor II

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Question 5
Free
Multiple Choice

Which of the following statements about the coverage for medical payments to others (Coverage F) under the homeowners policy is true?

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A

Medical payments may be made for any resident of the named insured's household.

B

Medical expenses incurred within 3 years of an accident are covered.

C

Medical payments are made only if the insured is not legally liable.

D

Covered medical expenses are limited to emergency room charges.

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Question 6
Multiple Choice

Which of the following persons is (are) eligible for benefits under medical payments to others (Coverage F) of the homeowners policy?
I) A friend who slips and falls on a wet patio while visiting the named insured
II) A neighborhood child who is severely scratched by a cat in the care of the named insured

Choose correct answer/s
A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 7
Multiple Choice

All of the following are considered insured locations for medical payments to others (Coverage F) under a homeowners policy EXCEPT

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A
a new vacation home purchased by an insured during the policy period.
B
a motel room where an insured is temporarily residing.
C
a hall rented by the insured for her daughter's graduation party.
D
farmland owned by the insured.
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Question 8
Multiple Choice

Section II of the homeowners policy has exclusions applying to all of the following EXCEPT

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A
activities of the named insured's minor children.
B
business activities.
C
transmission of a communicable disease.
D
intentional injuries.
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Question 9
Multiple Choice

All of the following situations are excluded from coverage under Section II of the homeowners policy EXCEPT

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A
the rental of a spare bedroom which is used by the tenant as an office.
B
the use of a rented airplane to take a vacation.
C
the ownership of a ten-unit apartment house as an investment.
D
the performance of professional services by the insured at the residence premises.
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Question 10
Multiple Choice

Which of the following situations is covered under Section II of an unendorsed homeowners policy?

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A
injuries which occur at a park resulting from a motorcycle owned by the insured
B
injuries resulting from an auto not subject to registration because it is in dead storage
C
injuries resulting from an auto rented by the insured while on a vacation
D
injuries resulting from a trailer being pulled by the insured's auto
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Question 11
Multiple Choice

Which of the following statements regarding watercraft liability under Section II of an unendorsed HO-3 policy is (are) true?
I)No coverage is available for watercraft liability.
II)Liability arising out of the use of watercraft that are under certain length and horsepower limits is covered.

Choose correct answer/s
A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 12
Multiple Choice

Which of the following situations would be covered under Section II of a homeowners policy?
I)The insured is sued by his girlfriend because he infected her with the AIDS virus.
II)The insured's son is sued after a friend suffered serious injury as a result of using illegal drugs sold to him by the son.

Choose correct answer/s
A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 13
Multiple Choice

For which of the following situations would there be personal liability coverage under the homeowners policy?
I)The named insured accidentally injures her husband with a hammer.
II)The named insured breaks his wife's valuable vase while practicing his golf swing.

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A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 14
Multiple Choice

All of the following are exclusions in the homeowners policy that apply to medical payments to others (Coverage F) EXCEPT

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A
bodily injury resulting from nuclear radiation.
B
bodily injury to persons who are social guests at the insured location.
C
bodily injury to persons eligible to receive workers compensation benefits.
D
bodily injury to residents of the household who are in the care of an insured.
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Question 15
Multiple Choice

Which of the following statements about the additional coverages included in Section II of the homeowners policy is true?

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A
Damage to property of others is covered only if the insured is legally liable.
B
Damage to property arising out of a business engaged in by the insured is covered.
C
Interest that accrues on a judgment after the judgment is awarded but before the judgment is paid is covered under claims expenses.
D
First aid expenses incurred by the insured for a bodily injury covered under the policy are not covered.
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Question 16
Multiple Choice

Which of the following statements about the additional coverage for damage to property of others in Section II of the homeowners policy is true?

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A
The maximum amount of coverage is $25,000 per occurrence.
B
Payments are made on the basis of the replacement cost of the damaged property.
C
There is coverage for property damage arising out of a business engaged in on a full-time basis by an insured.
D
There is coverage for intentional property damage by any insured who is a teenager.
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Question 17
Multiple Choice

Liability arising out of which of the following is covered under the personal injury endorsement to the homeowners policy?

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A
bodily injury
B
property damage
C
slander
D
professional liability
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Question 18
Multiple Choice

Liability arising out of which of the following is covered under the personal injury endorsement to the homeowners policy?

Choose correct answer/s
A
property damage liability
B
false arrest
C
bodily injury
D
business liability
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Question 19
Multiple Choice

Factors that affect the cost of homeowners insurance include which of the following?
I)Construction material
II)Deductible amount

Choose correct answer/s
A
I only
B
II only
C
both I and II
D
neither I nor II
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Question 20
Multiple Choice

Which of the following statements about endorsements to the homeowners policy is (are) true?
I)The purpose of the inflation guard endorsement is to help prevent home owners from being under-insured.
II)The purpose of the watercraft endorsement is to provide coverage for watercraft when they are used outside the United States.

Choose correct answer/s
A
I only
B
II only
C
both I and II
D
neither I nor II
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