Chapter 11

Question 1

The Earthquake policy treats all tremblors that occur within a ______ period as part of a single quake.

Select one:

a. 1 day (12 hours)
b. 2 days (24 hours)
c. 3 days (72 hours)
d. 7 days (168 hours)

Answer 1

See Page 11-3.

The correct answer is: 7 days (168 hours)

Question 2

The earthquake deductible is applied:

Select one:

a. once each 7 days (168 hours)
b. with each aftershock

Answer 2

This prevents a quick series of quakes from wiping out all of the policy’s coverage.

The correct answer is: once each 7 days (168 hours)

Question 3

Earth movement insurance is available:

Select one:

a. only as a stand-alone policy
b. only as an endorsement

Answer 3

Earthquake insurance is designed as a rider - we have to add it to another property policy. It is not a “stand alone” policy.

The correct answer is: only as an endorsement

Question 4

Earth Movement Insurance covers:

Select one:

a. tearing down of buildings as required by government.
b. volcanic eruption.
c. the government demolishing a house as a result of a volcanic eruption.
d. increased cost of complying with an ordinance or law.

Answer 4

You are right, this is a nasty question. Volcanic eruption is the best answer because the “Earth Movement and Volcanic Eruption” policy covers the underground shaking caused by a volcanic eruption. I think somebody needs to come up with a new name for this policy because it only covers the shaking from a volcanic eruption but it doesn’t cover the volcanic blast, dust, or lava.

The correct answer is: volcanic eruption.

Question 5

An Earth Movement policy covering a shopping mall would most likely cover a claim involving:

Select one:

a. war
b. volcanic eruption
c. flood
d. nuclear

Answer 5

The correct answer is: volcanic eruption

Question 6

The deductible under an earthquake policy is:

Select one:

a. $120.
b. $250.
c. $500.
d. a percentage.

Answer 6

The correct answer is: a percentage.