Exam C Flashcards
If you want to be covered for everything that is not excluded, you should buy:
a. Special cause of loss
b. Basic cause of loss
c. Broad cause of loss
d. Named peril coverage
a. Special Cause of Loss
All of the following statements concerning valuation in property policy are true EXCEPT:
a. Under agreed value, the insured and the company establish the value before the loss occurs
b. under stated amount, the insured does not know what will be paid on the loss until the loss occurs
c. Under stated amount, the insured is guaranteed the limit on the declarations page following a loss
d. Functional replacement is also known as the cost to repair or replace with property that serves the same function
c. Under stated amount, the insured is guaranteed the limit on the declarations page following a loss
Under a Special Cause of Loss form, the burden of proof following a loss is on the a. Insured b. Company c, Assignee d. Mortgagee
b. company
Under a Broad Cause of Loss form, the burden of proof following a loss is on the
a. Insured
b. Company
c. Assignee
d. Mortgagee
a. insured
Which of the following is true concerning the medical payments section of a liability contract?
a. it pays only if the insured is legally liable
b. it can pay for the injured party’s lost wages
c. it has rather low dollar limits
d. it pays in addition to any liability judgments
c. it has rather low dollar limits
Which of the following is true concerning defense costs in a liability contract?
a. They only pay if you’re legally liable
b. They pay in addition to the limits of the policy
c. They must be purchased separately
d. They can cover the insured’s cost of suing the negligent party
b. They pay in addition to the limits of the policy
Fire Legal Liability is most important to:
a. a landlord
b. a mortgagee
c. an employee
d. a tenant
d. a tenant
Which of the following is Coverage D in a Dwelling policy?
a. Additional Living Expenses
b. Fair Rental Value
c. Broad Form Theft
d. Limited Theft
b. Fair Rental Value
An attached garage would be covered as
a. an appurtenant structure
b. other structures
c. coverage C
d. coverage A
d. Coverage A
What is the maximum that the Fire Department service charge can pay in a Homeowners policy?
a. $100
b. $200
c. $300
d. $500
d. $500
You are driving your car to soccer practice with your son and the neighbor’s kid in the car when you run a red light and hit Calvin and his family in their car. Under what part of your Personal Auto Policy would Calvin’s injury be covered?
a. Part A
b. Part B
c. Part C
d. Part D
a. Part A
You are driving your car to soccer practice with your son and the neighbor’s kid in the car when you run a red light and hit Calvin and his family in their car. Under what part of your Personal Auto Policy would the neighbor kid’s injury be covered?
a. Part A
b. Part B
c. Part C
d. Part D
b. Part B
You are driving your car to soccer practice with your son and the neighbor’s kid in the car when you run a red light and hit Calvin and his family in their car. What part of your policy covers damage to Cal’s car?
a. Part A
b. Part B
c. Part C
d. Part D
a. Part A
You are driving your car to soccer practice with your son and the neighbor’s kid in the car when you run a red light and hit Calvin and his family in their car. What part of your policy covers damage to your car?
a. Part A
b. Part B
c. Part C
d. Part D
D. Part D
Under the National Flood Program, which of the following is true?
a. You must live in a flood plain to buy the policy
b. If your community fails to participate you may still purchase flood insurance
c. building losses are settled at ACV and contents are settled at Replacement Cost
d. The minimum deductible is $500
d. the minimum deductible is $500
Which of the following is NOT a coverage choice in the CPP?
a. Crime
b. Farm
c. Inland marine
d. Garagekeepers
d. Garagekeepers
