Sam, who has a typical HO-3 policy, is forced to evacuate his home by civil authorities due to rising flood waters in his neighborhood. It takes a month before Sam is allowed to come back to his home. During this time, he has spent $3,000 in hotel expenses, on top of his monthly mortgage payment of $850. When he files a claim, how much will Sam receive under Coverage D - Loss of Use?

Answer: $0. Coverage D will pay for loss of use when the insured is prohibited to use the dwelling by Civil Authority, but only if the cause is a covered peril. Flood is excluded in a typical HO-3 policy.

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount?

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What is the other term for the cash payment settlement option?
The pro rata liability clause is designed to protect the principle of
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A domestic insurer issuing variable contracts must establish one or more
All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT
All of these statements about the Waiver of Premium provision are correct EXCEPT
Which of the following best defines target premium in a universal life policy?
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A beneficiary change can occur
No existing agent's license will be revoked until
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In an insurance contract, the applicant's "consideration" is the
Agents may be found guilty of defamation if they make a false statement that is intended to?
How many pair of glasses in a 12-month period will a vision expense insurance plan cover?
The voluntary relinquishment of a legal right is called
What documentation grants express authority to an agent?
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What is the benefit of choosing extended term as a nonforfeiture option?
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All of the following are true regarding rebates EXCEPT
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All of the following are elements of an insurance policy EXCEPT
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Life income joint and survivor settlement option guarantees
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Which of the following is true regarding a market value adjusted annuity?
What is the other term for the cash payment settlement option?
What documentation grants express authority to an agent?

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

Jim has been arrested for drunk driving. In order to be allowed out of jail before his court date, Jim will most likely need:

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