UNIT 13

Question 1

The consumer’s cost of coverage is called the

a. condition.
b. premium.
c. endorsement.
d. exclusion.

Answer 1

b. premium.

Question 2

The CLUE report is used to

a. determine a consumer’s credit rating.
b. determine the risk of insuring a property.
c. assess the value of a property.
d. generate leads for real estate agents.

Answer 2

b. determine the risk of insuring a property.

Question 3

Real estate brokers should advise consumers to inquire about the availability of insurance

a. during the due diligence period.
b. prior to settlement.
c. prior to closing.
d. any time during the contract period.

Answer 3

a. during the due diligence period.

Question 4

The NCAR Offer to Purchase and Contract form 2-T states that the risk of loss or damage by fire or other casualty prior to closing is on the

a. title company.
b. the buyer.
c. the listing broker.
d. the seller.

Answer 4

d. the seller.

Question 5

The National Flood Insurance Program is managed by

a. Housing and Urban Development.
b. Consumer Financial Protection Bureau.
c. independent insurance brokers.
d. Federal Emergency Management Agency.

Answer 5

d. Federal Emergency Management Agency.