Miscellaneous Personal Lines Coverage

Question 1

Which of the following statements about the Personal Jewelry Floater is correct?

A) The Pair and Sets Clause does not apply
B) Coverage is written on a replacement cost basis
C) Automatic coverage for newly acquired items is only provided for 30 days
D) An appraisal of the item is optional

Answer 1

C) Automatic coverage for newly acquired items is only provided for 30 days

Question 2

Which of the following types of property are covered by the Personal Effect Floater?

A) Paintings, etching, and pictures
B) Personal property carried by travelers
C) Golfer’s equipment
D) Coin collections

Answer 2

B) Personal property carried by travelers

Question 3

• provides open peril coverage for items worn or carried by tourists and travelers
• The coverage applies worldwide, but not at insured’s home

Answer 3

Personal Effects Floater

Question 4

• Coverage may be written on a valued or actual cash value basis
• Contains a “Pair and Sets Clause”

Answer 4

Personal Jewelry Floater

Question 5

Section I of the Boatowners policy provides what type of coverage for the hull?

A) Actual Cash Value
B) Replacement cost
C) Stated Value
D) Open Perils

Answer 5

D) Open Perils

Question 6

Which of the following is correct about difference in conditions (DIC) insurance?

A) Flood is a peril that can be covered by this policy
B) It is written on a standard form similar to the property form
C) Fire and lightning are typical covered perils
D) The coinsurance clause is included on all policies

Answer 6

A) Flood is a peril that can be covered by this policy

Question 7

In order to be considered a single occurrence, the Earthquake endorsement covers all earth movement that occurs within what time period?

A) 12 hours
B) 36 hours
C) 48 hours
D) 72 hours

Answer 7

D) 72 hours

Question 8

The National Flood Insurance Program (NFIP) sells flood insurance in which of the following types of communities?

A) Communities that border a large body of water
B) Participating communities
C) Farm communities
D) Communities with a population less than 300,000

Answer 8

B) Participating communities

Question 9

A single-family dwelling may purchase up to what amount of flood insurance in the NFIP’s Emergency program?

A) $35,000
B) $50,000
C) $100,000
D) $250,000

Answer 9

A) $35,000

Question 10

Which of the following is not eligible for coverage under a Fair Access to Insurance Requirements program?

A) Homeowner
B) Rental dwelling
C) Farm Property
D) Uninsured dwelling property

Answer 10

C) Farm Property

Question 11

All of the following are true regarding the Personal Umbrella Policy, EXCEPT:

A) The umbrella acts as a contributory liability policy
B) The policy requires underlying coverage for automobiles and homes
C) The umbrella can provide broader coverage than the primary policy
D) The policy is written for higher liability limits

Answer 11

A) The umbrella acts as a contributory liability policy

Question 12

Which of the following perils is covered under the Personal Umbrella?

A) Aircraft
B) Personal injury
C) Bailee
D) Intentional injury

Answer 12

B) Personal injury

Question 13

The self-insured retention in the Umbrella is described as which of the following?

A) Excess coverage
B) An Endorsement
C) A method of cost-sharing
D) Primary coverage

Answer 13

C) A method of cost-sharing