Insurance MCQ

The Dwelling Under Construction form is also known as: a. Builder's Risk Form b. Road Theft c. Automatic Increase d. Major Coverages Answer: A

Which form of a Builder's Risk policy is best described as determining the amount of coverage based on the projected value of the building when it is completed? a. Personal liability form b. Pro rata form c. Reporting form d. Completed value form Answer: D

How long must the premises be vacant before Vandalism and Malicious Mischief (V&MM) is no longer applicable? a. 15 consecutive days b. 45 consecutive days c. 90 consecutive days d. 30 consecutive days Answer: D

Which of the following is NOT covered under the Dwelling Basic Form (DP-1)? a. The eight (8) extended coverage perils b. Vandalism and malicious mischief c. Earthquake d. The three (3) standard fire perils Answer: C

In which of the following situations could a Dwelling Policy form not be used? a. There is only one family living in the building, and the wife does hairstyling in the basement. b. There are three families, and two of them have a non-family member living with them c. The owner does not live in the building. d. Five families live in the building, but there are no boarders. Answer: D

Which of the following situations would NOT be excluded from coverage in a DP-1 form policy? a. The building falls into a sinkhole that was located under it. b. The home next door to the insured building catches fire and the resulting smoke causes damage to the insured building. c. The building has been vacant for 40 days. d. A flood causes damage to the building's basement. Answer: B

The Fair Rental Value coverage form provides which of the following? a. It covers the cost of finding a new renter once repairs from a covered peril have been made. b. It covers the loss of rents due to covered damage to the rented property. c. It covers the hotel costs for the renters. d. It covers the repairs to a rented property. Answer: B

Jim and Barb own a rental house and insure it under a DP-2 policy. Which of the following situations would NOT be covered? a. A hailstorm damages the roof of the building. b. Children playing baseball in the lot next door hit a ball through the front window of the house. c. A factory next door to the building spills chemicals that get into the drinking water of the insured building. d. The kitchen ceiling caves in under the pressure of snow after a severe snowstorm. Answer: C

Broad Theft does not cover which of the following? a. 15 foot Sailboats b. Vandalism to the premises interior c. Malicious mischief d. Paintings Answer: A

How long does the insured have to bring legal action against the insurer? a. Two (2) years b. Five (5) years c. There is no limit of time. d. One (1) year Answer: A

All of the following would be eligible for coverage under the dwelling policy EXCEPT A: a Tenant-occupied dwelling B: A dwelling in the course of construction C: A duplex with one primary owner D: A house that has 5 families in it Answer: A house that has 5 families in it

Which of the following is true of dwelling policy coverage? A: There are no exclusions in basic forms B: Special forms only have special exclusions C: Exclusions apply to all 3 policy forms D: Exclusions only apply to broad policy forms Answer: Exclusions apply to all 3 policy forms

Under the additional living expenses coverage, if a civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's direct policy, loss would be covered for up to A: 1 month B: 90 days C: 2 weeks D: 1 week Answer: 2 weeks

Which of the following dwelling coverages would provide coverage to a garage not attached to the primary insured dwelling? A: Coverage C B: Coverage E C: Coverage A D: Coverage B Answer: Coverage B

What is the maximum number roomers or boarders for properties insured under the dwelling policy A: 2 B: 3 C: 5 D: 6 Answer: 5

In which of the following situations would off-premises coverage in a broad theft endorsement apply? A: The insured's jewelry is stolen from her vacation home after she returns home B: The insured's vacuum cleaner is stolen from her apartment C: The insured's camera is stolen from his vacation home while he is there D: The insured's liv-in maid's quarters are burglarized Answer: The insured's camera is stolen from his vacation home while he is there

A house insured under a dwelling policy has been vacant for 70 consecutive days. Which of the following statements is true? A: Damage to glass building blocks is not covered B: Loss of theft is covered C: Loss by vandalism and malicious mischief is excluded D: Glass breakage as a result of vandalism is covered Answer: Loss by vandalism and malicious mischief is excluded

In dwelling policy which of the following is true regarding personal liability coverage? A: It does not cover medical payments to others B: It is included in all dwelling policies C: It is the same as in homeowners policies D: It must be added as a supplement or written as a separate policy Answer: D: It must be added as a supplement or written as a separate policy

In dwelling policies automatic increases in insurance is A: coverage for newly acquired property B: coverage by endorsement C: automatic coverage D: coverage without additional premium Answer: B: coverage by endorsement

Under the dwelling policy coverage C personal property is? A: Automatically provided at 50% of coverage A B: A prohibited coverage in the dwelling form C: Limited to 50% of the amount of insurance that is written as coverage A D: Limited to covering a servants property while at insured location Answer: Limited to covering a servants property while at insured location