*7 TB - Homeowners Insurance

Question 0

The type of coverage on contents provided by HO-3 is:

Open Perils

Named Perils

Basic Forms

Comprehensive

Answer 0

Named Perils!!!

The HO-3 form provides BROAD PERIL coverage on the contents and OPEN on structures

Question 1

All of the following are covered under Coverage A of a Homeowner Policy, except:

Attached Garage

Construction Materials used in building an addition to the dwelling

Detached garage

A central air conditioning

Answer 1

Detached garage!!!

(A detached garage is under coverage B

Question 2

Under the Homeowner Policy, theft coverage does not cover theft of property:

Committed by the insured

From a dwelling under construction

From the residence of the insureds tenant

None of the above are covered

Answer 2

None of the above are covered!!!

Question 3

An apartment dweller would be in the market for a:

HO-2

HO-3

HO-4

HO-6

Answer 3

HO-4

(The tenant does not own the structure so contents coverage, additional living expense and liability coverage would be needed)

Question 4

The personal liability coverage for Mr. Jones Homeowner Policy would cover Jones if:

His dog bit his neighbor on the nose

His 14 year old son burned down the house

He negligently bumped into his son while running to work

All of the above

Answer 4

His dog bit his neighbor on the nose!!!

(Section II is basically third party coverage, it protects the insured for their legal liability that is causing bodily injury / property damage claims. The dog bit the neighbor and therefore the insured would be protected for such claims, including defense costs)

Question 5

Coverage F of the homeowners policy applies to:

The named insured

Resident relatives

Tenants of the insured

Social Invitees

Answer 5

Social invitees

Question 6

Coverage E of the Homeowners Policy involves:

Premises Liability

Personal Activities

Acts of residence employees

All of the above

Answer 6

All of the above!

Question 7

Which of the following homeowners forms provides the least amount of peril coverage?

HO-5

HO-3

HO-2

HO-8

Answer 7

HO-8

Question 8

Coverage D - Loss of Use provided which of the following percentages of Coverage A under the HO-2?

10

30

40

50

Answer 8

30

Question 9

Under Coverage C of the Homeowner Policy, which of the following categories of property receive limited dollar coverage?

Boats

Trailers

Furs

All of the above

Answer 9

All of the above!!!

Question 10

The Homeowners Policy excludes which of the following types of personal property?

The insureds dog

The insured motor bike

Silverware scheduled under the policy

All of the above

Answer 10

All of the above

Question 11

Under the HO-3, what percentage of the amount of insurance written for Coverage A applies to Coverage C for a one or two family dwelling?

10

25

50

100

Answer 11

50

Contents are covered for 50% of Coverage A for one or two family dwellings

Question 12

Under Coverage B - Other Structures of the Homeowner Policy, which of the following structures are not covered?

Structures used for Business Purposes

Structures rented to a non-tenant for other than private garage

Attached Garages

All of the above

Answer 12

All of the above

Question 13

If the insurer cancels a Homeowners Policy, unearned premium is returned to the insured on what basis?

Short rate

Pro rata

Discount

Experience

Answer 13

Pro rata!!

Question 14

If the insured cancels a Homeowner Policy, unearned premium is returned to the insured on what basis?

Short rate

Pro rata

Discount

Experience

Answer 14

Short Rate!

Question 15

All of the following are exclusions under the Homeowner Policy, except:

Intentional loss

Flood

Earth movement

Volcanic eruption

Answer 15

Volcanic eruption

Volcanic Eruption would be thing that would be covered

Question 16

A Homeowner Policy may be cancelled by the insured:

A. For any reason

B. At any time

C. Both A and B

D. Neither A not B

Answer 16

Both A and B

Question 17

Homeowner Medical Payment Coverage does not apply to Bodily injury to which of the following?

The insured’s seven-year old son who fell down the front stairs

An appliance repairman working on the insured premises.

An insured boarded who trips in her apartment over a rug

All of the above

Answer 17

All of the above

Question 18

Watercraft excluded from coverage under Section II of the Homeowner Policy includes all of the following, except:

Inboard owned by the insured

Outboard owned by the insured of 25 horsepower

30 foot sailboat rented to the insured

Inboard - outboard of 80 HP owned by the insured

Answer 18

Outboard owned by the insured of 25 horsepower

Question 19

Under the Damage to Property of Others coverage of a Homeowners Policy, section II, property damage caused intentionally by an insured is:

13 years old

18 years old

21 years old

Any of the above

Answer 19

Any of the above!!!

Question 20

Under Section II - Additional Coverage of the Homeowner Policy, the insurer agrees to pay:

The cost of a legal defense

Premiums on bonds connected with liability suits

Investigations cost

All of the above

Answer 20

All of the above!!!

Question 21

A condominium owner-occupant would be in the market for a:

HO-2

HO-3

HO-4

HO-6

Answer 21

HO - 6

This is specifically designed for condo’s

Question 22

A Homeowner policy can be purchased by:

A person buying a home under the installment plan

An individual who owns a home under the course of construction

The owner of a seasonal dwelling who is insured under a Homeowners policy for her primary dwelling

All of the above

Answer 22

All of the above

Question 23

A homeowner has fire that totally destroys a $200 typewriter before the fire is extinguished. If the fire coverage on a contents contains a $259 deductible, the insured will receive:

$200

$50

$250

$0

Answer 23

$0

Question 24

The limit of liability of any property insurance contract in a given loss is the:

ACV settlement

RC settlement

Policy Limits

Market Value

Answer 24

Policy Limits