Chapter 3 Quiz Flashcards
Which of the following is NOT covered under accounts receivable coverage form?
Any loans required to offset uncollectible amounts.
Which of the following is true regarding single dwellings that are insured to at least 80% of the replacement value?
They are automatically provided with replacement cost coverage.
To be eligible for coverage under the National Flood Insurance Program, an insured must live in which of the following communities?
That has met the minimum floodplain management guidelines
Who would participate in a Write Your Own (WYO) flood insurance program?
A WYO program is made up of private insurers that write and service National Flood Insurances policies on a no risk-bearing basis though a special arrangement with the Federal Insurance Administration. WYO programs retain part of the flood insurance prem to pay for commissions and administrative costs. The remaining premiums, plus investment , are used to cover losses.
How Long is the waiting period after the application has been accepted before flood coverage goes into effect?
30 Days as required by the NFIP National Flood Insurance Program.
Which of the following would NOT be considered for flood conditions covered by the national Flood Program
Landslides
If an insured purchases a NFIP 10 days after their community enters an emergency program. When would her coverage be effective?
12:01am the day after the application and prem payment are mailed.
The regular National Flood Insurance Program would insure an eligible single family dwelling for up to….
It is Written for a value of dwelling up to $250,000 on a replacement cost basis.
How long is the policy period for NFIP flood insurance?
1 year!
Which is not considered a Flood?
Mudslides, Runoff of surface waters, overflow of tidal waters, sewer backup?
Sewer backup
Which of the following is an additional coverage that is covered by the broad courses of loss form?
Lightning, Ordinance of Law, Settling, or Collapse?
Collapse!
B.B. BICE-GOLF
B ursting of heating systems;
B urglary damage;
B reaking of water heaters;
I ce, snow, or sleet weight;
C ollapse of building or part of a building;
E lectrical damage (artificially generated);
G lass breakage;
O bjects falling from outside;
L eakage of water or steam damage;
F reezing of plumbing.
A commercial property special form covers property IN TRANSIT up to…
$5,000, its a extension of coverage and may be added to the special form/Coinsurance dose not apply.
When is liability coverage included in a homeowners policy?
automatically? if theirs is an endorsement?, if insured has form HO-4, or if insured has form HO-2 or HO-3?
Automatically, All homeowners policies automatically have liability coverage included in Section II.
Can earthquake coverages be written in a Difference of Conditions/ can be added to property policies by endorsements?
Yes, and Yes!
they are not commonly provided thought a federally funded program.
What is a Personal Floaters policy and what does it cover?
Movable Personal Property, wherever it may be located.
