Homeowners and Dwelling Quiz

Question 1

Coverage C – Personal Property coverages personal property owned by an insured while it is located:

a. anywhere in the world
b. Anywhere in the U.S. or Canada
c. Anywhere in the U.S.
d. Anywhere in the U.S., Canada or Mexico

Answer 1

a. anywhere in the world

Question 2

All of the following are “insureds” on the homeowners policy EXCEPT:

a. The son of the named insured who is living at home
b. An 18 year old foreign exchange student while living with the named insured
c. The adopted daughter of the named insured who lives with the named insured
d. the named insured’s mother who is visiting for the weekend

Answer 2

d. the named insured’s mother who is visiting for the weekend

Question 3

The standard limit for Coverage B – Other structures is:

a. $5,000
b. $10,000 of Coverage A - Dwelling
c. $20% of Coverage A - Dwelling
d. 10% of Coverage A - Dwelling

Answer 3

d. 10% of Coverage A

Question 4

The standard limit for Coverage C – Personal Property is:

a. 25% of Coverage A – Dwelling
b. 50% of Coverage A – Dwelling
c. 25% of Coverage B – Other Structures
d. 50% of Coverage B – Other Structures

Answer 4

b. 50% of Coverage A – Dwelling

Question 5

All of the following are “insured locations” EXCEPT:

a. a hotel room rented for a weekend
b. A meeting hall rented for a wedding reception
c. Vacant land owned by the insured
d. A kennel that has custody of the insured’s dog while they are on vacation

Answer 5

d. A kennel that has custody of the insured’s dog while they are on vacation

Question 6

The maximum amount of coverage for money under Coverage C – Personal Property is:

a. $1,000
b. $1,500
c. $100
d. $200

Answer 6

d. $200

Question 7

The maximum amount of coverage for stolen jewelry under Coverage C – Personal Property is:

a. $200
b. $500
c. $1,500
d. $2,500

Answer 7

c. $1,500

Question 8

An insured carries a Coverage A-Dwelling limit of $40,000. The replacement cost of the dwelling is $100,000. Fire damage to the dwelling results in an $8,000 loss. The actual cash value of the loss is $6,000. What is the maximum loss settlement? Disregard deductibles.

a. $8,000
b. $4,000
c. The amount of the contractor’s estimate
d. $6,000

Answer 8

d. $6,000

Question 9

Which of the following is covered by Section II – Liability of the homeowners policy?

a. BI to another golfer struck by a ball hit by the named insured
b. BI to a client who fell down the steps of the named insured’s rented business office
c. BI to the named insured who falls while getting out of her car in her driveway
d. BI to an employee of the named insured who is covered by workers compensation

Answer 9

a. BI to another golfer struck by a ball hit by the named insured

Question 10

Coverage F – Medical Payments to Others covers all of the following situations EXCEPT:

a. injury to a grocery store customer struck by a shopping car pushed by the named insured
b. injury to a neighbor caused by the insured’s dog
c. injury to the named insured’s resident son caused by falling off the porch of the insured’s dwelling
d. injury to the named insured’s sister who falls while visiting the insured for the day

Answer 10

c. Injury to the named insured’s resident son caused by falling of the porch of the insured’s dwelling

Question 11

Of the following statements, which one is true of Dwelling Policies?

a. Dwelling policies do not automatically provide theft coverage
b. Dwelling policies provide no coverage for personal property
c. You can’t write a dwelling policy for a tenant who rents an apartment
d. Dwelling policies automatically provide liability coverage

Answer 11

a. Dwelling policies do not automatically provide theft coverage

Question 12

Which Dwelling Policy automatically provides Coverage E - Additional Living Expense coverage?

a. Basic Form
b. Broad form
c. Special form
d. Broad and special form

Answer 12

d. broad and special form

Question 13

A Basic Form Dwelling policy automatically provides which of the following perils:

a. fire
b. wind
c. vandalism
d. smoke

Answer 13

a. fire

Question 14

Liability coverage on a dwelling policy is:

a. unavailable
b. automatically included
c. added by endorsement
d. only provided by issuing a separate liability policy

Answer 14

c. added by endorsement

Question 15

Flood Insurance Coverage is not available in most property policies because:

a. Insurance companies do not cover water damage claims.
b. The element of uncertainty does not apply to the peril of flood.
c. There aren’t enough people who will purchase flood insurance.
d. Floods don’t occur as often as other perils.

Answer 15

b. The element of uncertainty does not apply to the peril of flood.

Question 16

There are two types of Flood Insurance Programs available. They are:

a. The standard and non-standard flood insurance programs
b. The basic and deluxe flood insurance programs
c. The emergency and regular flood insurance programs
d. The inland and coastal flood insurance programs.

Answer 16

c. The emergency and regular flood insurance programs

Question 17

The term “Flood” refers to all of the following except:

a. an overflow of inland or tidal waters
b. mudslides
c. collapse of land as a result of excess erosion due to flood
d. back-up of sewers or drains

Answer 17

d. back-up of sewers or drains

Question 18

Flood policies do not cover:

a. Lawns, trees, shrubs, plants, growing crops, and livestock
b. aircraft, self propelled vehicles and motor vehicles
c. Fences, retaining walls, outdoor swimming pools, bulkheads, wharves, piers, bridges, docks, and other open structures on or over water
d. all of the above

Answer 18

d. all of the above

Question 19

Which of the following does the Flood Policy not cover?

a. Building
b. Contents
c. Excessive erosion of land due to flood
d. loss of use

Answer 19

d. loss of use

Question 20

Single family dwellings are insured for replacement cost provided the owners insures the home for:

a. At least 70% of the home’s replacement cost
b. At least 80% of the home’s replacement cost
c. At least 80% of the home’s replacement cost or the maximum amount of insurance allowed by the Flood program
d. At least 90% of the home’s replacement cost

Answer 20

c. At least 80% of the home’s replacement cost or the maximum amount of insurance allowed by the Flood program

Question 21

Which of the following statements is not true regarding the effective date of the flood insurance?

a. Flood insurance has no waiting period when the initial purchase of flood insurance is made in connection with a loan
b. When an existing Flood policy is assigned to a property purchaser prior to transfer of title, coverage takes effect on the date title is transferred.
c. New flood insurance takes effect after a waiting period of 30 days following the date of the application
d. Requested changes to an existing flood policy take effect on the day they are requested.

Answer 21

d. Requested changes to an existing flood policy take effect on the day they are requested

Question 22

The National Flood Insurance Program was established by Congress in:

a. 1945
b. 1955
c. 1968
d. 1978

Answer 22

c. 1968

Question 23

The standard deductible for both building and contents coverage written in the emergency program is:

a. $1000
b. $100
c. $250
d. $2500

Answer 23

a. $1000

Question 24

The standard deductible for both building and contents coverage written in the regular program is:

a. $50
b. $100
c. $1000
d. $500

Answer 24

d. $500

Question 25

Which of the following statements regarding flood insurance is true?

a. Flood insurance written on a business will pay business income losses while the business is closed due to a flood loss
b. Personal Property removed to another place is covered for 45 days when removed by the insured to protect it from flood provided it’s in a building or otherwise protected from the elements while it is removed from the described location
c. Flood insurance will cover the cost of motel/hotel stays if you are evacuated due to flooding
d. Mobile Homes may be insured for flood through the National Flood Insurance Program.

Answer 25

b. Personal Property removed to another place is covered for 45 days when removed by the insured to protect is from flood provided it’s in a building or otherwise protected from the elements while it is removed from the described location

Question 26

NFIP policies may be sold by private insurance companies through the FIA’s:

a. Policy Replacement Program
b. Company Take-Out Program
c. Write your own program
d. Flood acceptance program

Answer 26

c. write your own program