Section 3: Lesson 3 & 4

Question 1

Homeowner’s policies combine;

Answer 1

Property, personal liability and medical payments into one policy of insurance

Question 2

Homeowner’s coverage is intended for:

Answer 2

Personal, non-business risks where the insured is an occupant of the insured premises.

Question 3

The most popular Homeowners policy sold in Texas and national marketplace today is the “all risk”:

Answer 3

HO-3 policy

Question 4

Many properties covered under HO-3 have been damaged by flood. Despite the obvious exclusion for “flood” damage , what would be needed for there to be coverage?

Answer 4

Damage caused by wind. If there is, the damage could be covered.

Question 5

A “non-homeowner’s”policy

Answer 5

HO-6

Question 6

What would not be covered under Coverage B: Personal property of Texas HO-C?

Answer 6

A central air conditioning system

Question 7

When a loss. is caused by the combination of two or more perils, this is referred to as:

Answer 7

Concurrent causation

Question 8

Damage to a property covered by a Texas HO-A policy is adjusted differently than one covered under an HO-C. one of the reasons is:

Answer 8

HO-A polices are adjusted on a ACV (actual cash value) basis and HO-C polices are adjusted on an RC (replacement cost)