Other Property And Liability Insurance Coverages

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Question 1
Free
Multiple Choice

Which of the following statements about Dwelling Property 1 (basic form) is true?

Choose correct answer/s
A

Coverage on the dwelling is written on a replacement cost basis.

B

The full amount of personal property coverage applies to property away from the insured premises.

C

Coverage for fair rental value of the dwelling is subject to both an overall maximum and a monthly maximum.

D

"Open-perils" (all risks) coverage is automatically provided for both the dwelling and personal property.

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Question 2
Free
Multiple Choice

Perils insured under Dwelling Property 1 (basic form) include which of the following?
I)Earthquake
II)Smoke

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 3
Free
Multiple Choice

Which of the following perils is covered under the Dwelling Property 2 (broad form) policy?

Choose correct answer/s
A

weight of ice, snow, or sleet

B

flood

C

theft

D

earthquake

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Question 4
Free
Multiple Choice

Which of the following statements about Dwelling Property 3 (special form) is (are) true?
I)Personal property is covered only for those perils specifically named in the policy.
II)The dwelling and other structures are covered on an "open perils" (all risks) basis.

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 5
Free
Multiple Choice

Which of the following coverages are provided by an unendorsed ISO Dwelling Program form?
I)Theft of personal property
II)Named-perils coverage for personal property

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 6
Multiple Choice

Which of the following statements about the eligibility requirements for insuring mobile homes by endorsing a homeowners policy is (are) true?
I)The mobile home must be designed for year-round living.
II)The mobile home must be located in a fenced area with security guards.

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

Which of the following statements about mobile home insurance is (are) true?
I)Coverage for the mobile home may be written on either a replacement cost basis or an actual cash value basis, depending on how much the mobile home has depreciated.
II)An additional coverage pays, up to a specified dollar limit, for the cost of transporting the mobile home to a safe place when it is endangered by a covered peril.

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 8
Multiple Choice

Which of the following is a characteristic of most inland marine floater policies?

Choose correct answer/s
A
The insurance can be tailored to the specific type of personal property insured.
B
Coverage amounts are pre-specified by the insurer and cannot be changed.
C
Coverage is normally written on a named-perils basis.
D
Covered property is insured only when it is at a specified location.
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Question 9
Multiple Choice

Which of the following statements about the Personal Articles Floater is (are) true?
I)It is designed to cover several classes of personal property.
II)Coverage is written on an "open perils" (all-risks) basis.

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 10
Multiple Choice

Which of the following statements about various coverages under a Personal Articles Floater is (are) true?
I)Each item of jewelry is described and is insured for a specified amount.
II)Stamp and coin collections can be insured on a blanket basis.

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 11
Multiple Choice

Which of the following statements about types of property covered under the Personal Articles Floater is true?

Choose correct answer/s
A
Golfer's equipment is covered only in the United States.
B
Furs are covered on a blanket basis without the necessity to schedule individual items.
C
A higher premium must be paid to insure musical instruments if they are played for pay.
D
Coverage for silverware and goldware is not available under the Personal Articles Floater.
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Question 12
Multiple Choice

Reasons why an insured might add a scheduled personal property endorsement to a homeowners policy include which of the following?
I)To lower the premium by limiting the perils covered
II)To obtain higher limits for certain personal property

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

All of the following statements about the boatowners package policy are true EXCEPT

Choose correct answer/s
A
Physical damage coverage for the boat is usually written to cover all losses except those losses specifically excluded.
B
Liability coverage is provided for bodily injury only.
C
Some policies provide optional uninsured boaters coverage.
D
Medical payments coverage for water-skiers is available under the policy.
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Question 14
Multiple Choice

All of the following statements about yacht insurance are true EXCEPT

Choose correct answer/s
A
Property damage coverage includes damage from insects, weathering, and wear and tear.
B
Liability coverage includes the cost of raising, removing, or destroying a sunken or wrecked yacht.
C
Coverage can be added for maritime workers covered by the United States Longshoremen and Harbor Workers Compensation Act.
D
Medical payments coverage pays for medical expenses because of accidental bodily injury.
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Question 15
Multiple Choice

Which of the following statements about the federal flood insurance program is true?

Choose correct answer/s
A
Under the write-your-own program, each insurer services the policies it writes.
B
The regular portion of the program does not allow the purchase of higher amounts of coverage than are available under the emergency portion of the program.
C
No coverage is available for property owners in areas where flooding has occurred previously.
D
The maximum amount of coverage that can be written on any single dwelling is $25,000.
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Question 16
Multiple Choice

Which of the following statements about coverage under the federal flood insurance program is (are) true?
I)Subsidized coverage is available for contents, but not for dwellings.
II)A $10,000 deductible applies to each loss.

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 17
Multiple Choice

All of the following are considered floods under the federal flood insurance program EXCEPT

Choose correct answer/s
A
the overflow of tidal waters.
B
the accumulation of surface water after a heavy rain.
C
a mudslide caused by an accumulation of water after a heavy rain.
D
the discharge of water from a home appliance, such as a water heater or washing machine.
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Question 18
Multiple Choice

Which of the following statements about federal flood insurance is true?

Choose correct answer/s
A
It is available even if property has been previously flooded.
B
It is unavailable in high-risk flood areas.
C
It is available only for residences, not for businesses.
D
Waiting periods are not used in the federal flood insurance program.
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Question 19
Multiple Choice

The basic purpose of FAIR plans is to provide

Choose correct answer/s
A
property insurance to persons who cannot obtain it in normal markets.
B
automobile insurance to persons who cannot obtain it in normal markets.
C
health insurance to persons who cannot afford it in normal markets.
D
workers compensation insurance to employers who do business in several states.
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Question 20
Multiple Choice

Which of the following statements concerning FAIR plans is (are) true?
I)All property is eligible for coverage regardless of physical condition.
II)Losses and expenses are shared by insurers who participate in a plan.

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