Guarantee Exam Flashcards
The Extended Coverage Endorsement covers loss or damage caused by:
Wind
Which statement about the Personal Auto Policy is false?
It is written on an aggregate limits basis
Which peril is covered by an Open Peril Dwelling policy?
Damage by burglars
Which of the following is a duty of the insured defined under Homeowners Section II following an insurable occurrence:
Prepare an inventory of the damaged property
An insured purchases a Homeowners Policy with a $250 deductible and a Personal Articles Floater to provide coverage against loss or theft of a $2000 diamond ring. If the insured loses the stone from the ring that is valued at $1,800 while on a trip, she will receive which amount from the insurance company?
$1,550 because of the $250 deductible
Which of the following perils is one of the Perils Insured Against under the terms of an HO-2 Broad form policy?
Overflow of water
All of the following are excluded by the personal property portion of a Homeowners Policy, except:
The insured’s pet bird, fish, and dog
An insurance company takes possession of a damaged auto it has covered. When the company becomes the legal owner of the auto, it is exercising the right of:
Salvage
Which statement about Errors & Omissions insurance is not correct?
Policies can cover damages arising out of an agent offering improper coverage
In casualty insurance, an accident occurs when:
Someone slips and falls on a freshly waxed floor in a retail store
A fur coat insured on a Personal Articles Floater for $5,000 was stolen. The replacement cost is $6,000 but its actual cash value was $4,000. The policy will pay:
$5,000
Under Section II of the Homeowners Policy, which location is not an insured location
A farm
An unendorsed Homeowners Policy covers endangered property removed to protect it from damage for up to ___ days:
30
Which statement is false of Section I of the Homeowners Policy?
It will cover theft from a safe deposit box
Which of the following losses would be covered by a homeowner’s policy? The insured’s:
Dinghy rowboat is destroyed in a garage fire
Property ownership is evidence of:
Insurable interest
A strong wind blew open and then slammed an insured’s front door, causing a lamp to fall on and cut a child’s leg. The proximate cause was:
The wind blowing
An insured’s house is filling with smoke. To minimize smoke damage, he moves an oriental rug out to the porch but a sudden rainstorm ruins it. Under a DP-1 with no extended coverages purchased, the policy:
Will cover smoke damage to the dwelling
nder the HO-3 Policy, the limit of liability for Coverage C is what percentage of Coverage A?
50%
Various limits of liability specified in a liability policy include; split limits, per person limit, occurrence limit, and:
Aggregate limit
The federal law that prohibits a person who has been convicted of a felony involving dishonesty or breach of trust from engaging in the insurance business without a waiver from the Commissioner of Insurance is the:
Federal Violent Crime Control and Law Enforcement Act
A vandalism or malicious mischief loss to an insured auto is an illustration of a _____ loss.
Property damage
In which type of contract is only one party’s promises enforced?
Unilateral
Section II of the Homeowners Policy does NOT provide coverage for:
Defending against groundless or false claims