Property And Casualty Chapter 6 Exam

Coverage C of a Homeowners Policy includes:

An owned camera used by the insured while on vacation in another country

Choose the answer that is true regarding the Homeowner HO-4 and HO-6 Forms.

The HO-4 is used to insure the personal property and personal liability of the insured, but does not include the structure itself

Section II of a Homeowners Policy covers which of the following for medical payments?

A guest of the insured on the residence premises

Under Coverage A of the Homeowners Policy, all of the following are covered, except:

The land on which the dwelling is located

The HO-8 form settles losses to the building on what valuation method?

Functional Replacement Value

A deer chews a hole in an insured's shed sitting next to a pond. Which of the following forms could cover this damage?

HO-3

Which of the following is NOT a 'residence premises' in the homeowners policy?

Premises rented occasionally to the named insured for non-business purposes

Under Section II of the Homeowners Policy, an employee whose duties are related to the maintenance or use of the residence premises, is defined as:

A residence employee

The HO-5 personal property coverages are insured on which basis?

Open Perils

What are limits of liability for coverage B,C, and D?

Coverage B is 10% of Coverage A

Coverage C is 50% of Coverage A

Coverage D is 30% of Coverage A

Except for HO-4 and HO-6

Under Coverage B of a Homeowners Policy is renting covered

The renting of a garage to store cars is covered

The amount of insurance provided to cover personal property of a Homeowners Policy is what percentage of Coverage A?

50%

Which statement is true of Section I of a Homeowners Policy?

A special limit of $1,500 limit applies to watercraft

Which person is not a covered resident under the Homeowners Policy?

The insured's tenant

Which form is designed for the unit-owner of a condominium?

HO-6

All of the following are true of a Homeowners Policy, except:

Section II provides coverage for damage to the insured's property

Under the Homeowners Policy, Medical Payments coverage will apply to expenses that are incurred within what length of time following an accident?

3 years

Coverage D Limits of Coverage

30% of Coverage A limit for HO-2,3,5

30% of Coverage C limit for HO-4

50% of Coverage C limit for HO-6

10% of Coverage A limit for HO-8

Which of the following is true regarding the HO-3 (Special Form)?

The dwelling and other structures (Coverages A and B) are written on an open perils basis

Which coverage is not provided under Section II of a Homeowners Policy?

Medical expense of a boarder

Which statement is true concerning Coverage D of the Homeowners Policy?

The coverage will pay for any increase in living expenses required to maintain the insured's normal standard of living

Under a Homeowners policy, Coverage B is what percentage of Coverage A?

10%

All of the following are considered to be insured under a Homeowners Policy, except:

A 25-year-old friend who is living with an insured

Most of H's jewelry is covered under the Coverage C special limits except for her $10,000 necklace inherited from her mother. Which of the following endorsements might H's agent recommend?

Scheduled Personal Property

Which of the following residents in the insured's dwelling is eligible to receive medical payments under Section II of a Homeowners Policy?

A residence employee

Which of the following is not true about the Home Business endorsement?

Only property damage is covered

Which of the following homeowners coverages does not have a deductible?

Damage to Property of Others

All of the following are true, except:

Coverage D of a Homeowners Policy includes loss of income from an incidental business

Choose the correct statement regarding the HO-3.

The dwelling and other structures are written on an Open Peril basis

Under a Homeowners policy, Coverage B is what percentage of Coverage A?

10%

Coverage for injury resulting from invasion of privacy is covered under which Endorsement?

Personal Injury

Which of the following is false in regard to the Home Day Care endorsement?

A day care employee is covered

An insured with a $500,000 HO-5 policy incurs $1,500 in damages due to a flood destroying the wood flooring. The policy will pay:

Zero

Which statement about the Homeowners Policy is false?

First Aid Expenses include first aid to an insured in the event of an injury

Which of the following would not be an insured under Section II of the Homeowners Policy?

The insured's tenant

All of the following are covered under Section II of the Homeowners Policy, except:

Property of the insured

Which statement is true of Section I of a Homeowners Policy?

A special limit of $1,500 limit applies to watercraft

Which of the following is true concerning the Home Day Care Coverage Endorsement to the Homeowners Policy?

It extends Section II coverages to the insured's home day care business

First Aid Expenses under the Homeowners Policy would cover:

A neighbor who gets injured while helping the insured install a carpet

Which of the following is eligible to receive medical payments under Section II of a Homeowners Policy?

A residence employee

Vandalism and malicious mischief losses are excluded under the Homeowners Policy:

When the property has been vacant for 65 consecutive days

All of the following are covered under a Homeowners Policy, except:

All living expenses incurred when a dwelling becomes uninhabitable after a covered loss

Which of the following is not true of the HO-2?

The HO-2 pays for losses on an open perils basis

Which type of liability limit applies to Medical Payments coverage?

Per person

Which of the following is true regarding the HO-4 and HO-6 forms?

They are used to insure the personal property and personal liability of the insured, but do not include the structure itself

Select the person who is not considered an insured under an HO-3 policy?

A friend who is renting a bedroom in the insured's house since it is only three blocks away from work

Choose the true statement concerning Homeowners Policies.

The Section I deductible does not apply to property covered under the Scheduled Personal Property Endorsement

All of the following are true of a Homeowners Policy, except:

The HO-2 provides open perils coverage on the dwelling

Under the HO-8 policy, the dwelling is valued on which basis?

Actual Cash Value

Which of the following is not true of the HO-2?

The HO-2 pays for losses on an open perils basis

Liability for use of which of the following vehicles is not covered by the Homeowners policy?

Dune buggy used on a public beach

Under the Homeowners policy, which coverage provides indirect loss coverage?

Coverage D

30% of Coverage A

What is the limit of liability for coverage D for HO-2, HO-3, and HO-5?

When using a neighbor's lawnmower, the insured strikes a large rock and causes $2,000 in damage to the neighbor's automobile. Which policy section of the insured's Homeowners policy may pay for part of the damage?

Personal liability

The HO-8 form settles losses to the building on what valuation method?

Functional Replacement Value

The HO-3 dwelling and other structures coverages are insured against which perils?

Open perils

Insured locations under a Homeowners Policy might include all of the following, except:

Vacant farm land

Which of the following special limits of liability is provided under Coverage C?

Theft of furs are covered up to $1,500

Coverage C of a Homeowners Policy includes:

An owned camera used by the insured while on vacation in another country

Which statement is false?

Coverage F limits are subject to a deductible

Choose the claim that would be covered under Coverage E of a Homeowners Policy.

Bodily injury to a guest caused by the insured's pet dog

Under Section II of the Homeowners Policy, an employee whose duties are related to the maintenance or use of the residence premises, is defined as:

A residence employee

Which of the following would not be covered under Section II of the Homeowners Policy?

Property damage to property owned by an insured

In addition to the named insured in a property policy, coverage is automatically provided for:

The insured's spouse

A tenant should buy which of the following Homeowner Policy Forms?

HO-4

Under the unendorsed Homeowners Policy, jewelry is covered up to what amount?

$1,500 for loss by theft

Choose the true statement concerning Homeowners Policies.

The Section I deductible does not apply to property covered under the Scheduled Personal Property Endorsement

The HO-3 dwelling and other structures coverages are insured against which perils?

Open perils

Which of the following is true regarding eligibility of a Homeowners Policy?

The dwelling must be the principal residence of the insured

The HO-8 form settles losses to the building on what valuation method?

Functional Replacement Value

All of the following are true of a Homeowners Policy, Coverage F, except:

Under Coverage F, payments apply to necessary medical expenses incurred within a maximum of 1 year

Which person is not a covered resident under the Homeowners Policy?

The insured's tenant

The Home Day Care endorsement does not provide which of the following?

Coverage for a day care employee

Which of the following is not true of the HO-2?

The HO-2 pays for losses on an open perils basis

Under the Homeowners Policy, Medical Payments coverage will apply to expenses that are incurred within what length of time following an accident?

3 years

Choose the correct statement regarding the HO-3.

The dwelling and other structures are written on an Open Peril basis

The HO-8 form settles losses to the building on what valuation method?

Functional Replacement Value

Of the following boats, which can be added to the Homeowners Policy for liability protection?

20' sailing boat

Under Section II of the Homeowners Policy, a one or two family dwelling where the insured resides in one of the units, including other structures and grounds at that location, is defined as:

The Residence Premises

Under the HO-8 policy, the dwelling is valued on which basis?

Actual Cash Value

All of the following are true of the HO-2, except:

The HO-2 pays for losses on an open peril basis

Which statement is true concerning Section II of a Homeowners Policy?

Damage to Property of Others coverage is provided up to a specified limit regardless of negligence

Select the person who is not considered an insured under an HO-3 policy?

A friend who is renting a bedroom in the insured's house since it is only three blocks away from work

Which form is designed for Tenants?

HO-4

Which of the following coverages is not included in a standard Homeowners policy?

Personal Injury liability

All of the following are true of a Homeowners Policy, except:

The HO-2 provides open perils coverage on the dwelling

Which property would be settled for its actual cash value even if the Personal Property Replacement Cost Loss Settlement Endorsement is attached to the HO-3 policy?

Antiques

Under a Homeowners Policy, structures on the premises that are separated by a clear space from the dwelling, are covered under:

Coverage B

The Watercraft Liability endorsement provides which coverage?

Property damage arising out of the racing of sailing vessels

Property damage to property owned by an insured

Which of the following would not be covered under Section II of the Homeowners Policy?

Which statement is true concerning Homeowners policies?

Property usually located in a student dormitory is limited to 10% of Coverage C or $1,000, whichever is greater

Which of the following is true regarding the HO-3 (Special Form)?

The dwelling and other structures (Coverages A and B) are written on an open perils basis

Which of the following would be covered under the Damage to Property of Others additional coverage of the Homeowners Policy?

Damage caused intentionally by the insured's 10-year-old son

Up to what amount of coverage is provided for a $1,000 shed if the insured doesn't use an available fire extinguisher to put out a shed fire?

Nothing

Which of the following claims would be covered by the First Aid Expenses under the Homeowners Policy?

A neighbor is injured while helping the insured install a carpet

Which of the following best describes the Debris Removal coverage under the Homeowners policy?

The policy will pay the insured for removing debris from a covered loss

Which of the following is not true about the Home Business endorsement?

Only property damage is covered

Which of the following best describes the reason to purchase an HO-8?

When insuring an older home that might create a moral hazard when insurance is written at replacement cost

Which of the following homeowners coverages does not have a deductible?

Damage to Property of Others

Which form is designed for Tenants?

HO-4