Unit Nine Miscellaneous Personal Insurance

Question 1

In 1968 what did Congress create and what does it do?

Answer 1

National flood insurance program(NFIP) to make flood insurance available to eligible communities throughout federal subsidization

Question 2

With flood insurance, what is the maximum dwelling coverage?

Answer 2

$35K

Question 3

With flood insurance, what is the maximum contents coverage?

Answer 3

10K

Question 4

What is maximum commercial building and maximum commercial contents

Answer 4

Both 100K

Question 5

What is the definition of a flood?

Answer 5

• temporary water from a natural source
• covers two or more acres that are usually dry
• mudflow
• water from inside the house is not a flood

Question 6

What form can be used to cover the contents of a mobile home but not the mobile home itself

Answer 6

HO4 Form

Question 7

What is HO7?

Answer 7

A separate mobile home package policy

Question 8

For mobile homes what can be attached to an HO2 or HO3 policy

Answer 8

A mobile homeowners endorsement

Question 9

What does a personal articles form provide?

Answer 9

Coverage for nine optional classes of personal property the same nine categories covered under the homeowner scheduled personal property endorsement
• jewelry
•fur
• cameras
• musical instruments
• silverware
• golf equipment
• fine arts
• stamps
• coins

Question 10

How many days of automatic coverage do you get for jewelry, furs cameras, and musical instruments?

Answer 10

30 Days

Question 11

How many automatic days of coverage do you get for fine art?

Answer 11

90 Days

Question 12

What else is the Personal effect floater known as?

Answer 12

Travelers baggage

Question 13

What does the Personal effect floater do?

Answer 13

Provide insurance to individuals/families, personal belongings while traveling

Question 14

What three categories does the insurance industry generally place watercraft into?

Answer 14

• boats less than 26 feet in length
• yachts, generally 26 feet or greater and length
• personal watercraft: jet ski’s waverunners and other personal watercraft

Question 15

What does a personal umbrella policy provide?

Answer 15

Coverage for some claims that would not be covered by the insured primary insurance policies, which would be subject policy retention

Question 16

What does the self insured retention(SIR) represent?

Answer 16

The amount of loss the insured must cover out-of-pocket