Insurance MCQ

A hose on a washing machine in the insureds condominium comes loose and leaks water all over the floor. The repair person has to tear out part of the wall to fix the defective hose. The insureds HO-6 would cover which of the following? a) the water damage to the floor b) the cost to repair the damaged wall Answer: Both

Which of the following statements about Coverage C of the homeowners policy are correct? a) it only covers the insureds personal property while it is at the residence premises b) at the insureds request, coverage applies to a guests property while the guest is in the insureds residence c) property normally kept at a residence premises is covered for 10% of the Coverage C limit or $1000, whichever is greater. d) There is no coverage for property being moved from the residence premises to a new principal residence. Answer:  b) at the insureds request, coverage applies to a guests property while the guest is in the insureds residence c) property normally kept at a residence premises is covered for 10% of the Coverage C limit or $1000, whichever is greater.

The following are covered under which homeowner policy(s)? a) a greenhouse attached to the porch of the insureds home b) a guest cottage on the insured's estate c) the insureds ranch style home d) a stack of lumber at the edge of the insureds property that will be used to construct a boat shed e) a detached shed rented to a neighbor as a private garage for an antique auto f) the insureds poolside cabana Answer: Coverage A and Coverage B

The insured would have liability coverage under the homeowners policy while operating which of the following boats? Assuming no endorsements are attached to the policy. a) 8-foot boat with a 25 horsepower inboard outdrive motor not owned by the insured b) 42 foot sailboat with no auxiliary power owner by the insured c) 15 foot boat powered by a 50 horsepower outboard motor that was purchased by the insured before the policy inception date and not reported to the insurer d) 8-foot boat with a 25 horsepower inboard motor rented by the insured. Answer: A and D

What type of homeowners endorsement is used to provide coverage for scheduled coverage for certain classes of personal property? Answer: scheduled personal property

What type of homeowners endorsement is used to provide coverage for replacement cost coverage for losses to personal property? Answer: personal property and replacement costs

What type of homeowners endorsement is used to provide coverage for losses arising out of libel and slander? Answer: personal injury

What type of homeowners endorsement is used to provide coverage for liability coverage for a business that is conducted away from the residence premises? Answer: Business pursuits

Which of the following statements concerning personal liability coverage are correct? a) it covers damages the insured becomes legally obligated to pay because of BI or PD. b) the insurer will not defend liability claims brought against the insured that are groundless or false c) it applies to the insured's personal, nonbusiness activities that occur anywhere. Answer: A & C

Which of the following statements concerning medical payments to other coverage are correct? a) injury to an insured is not covered b) the insured does not have to be legally liable for coverage to be available c) injuries that occur off the insured location are never covered. Answer:  a) injury to an insured is not covered b) the insured does not have to be legally liable for coverage to be available

HO-5 covers personal property on a _____ basis? Answer: replacement cost

Under the homeowners forms except the HO-5 losses to personal property are paid on _____basis. Answer: Actual Cash value (ACV)

Under an unenforsed homeowners policy, losses to dwelling and other structures are paid on _____basis? Answer: Replacement cost basis

Under the homeowners policy, which classes of personal property have special limits for theft losses but not for other types of losses? 1) firearms 2) silverware 3) jewelry

Which classes of personal property have special limits under the homeowners policy? 1) money 2) watercraft 3) valuable papers 4) trailers

The collapse additional coverage is included in which homeowners form(s)? Answer: All forms except HO-8

Which perils are covered under all homeowners forms? All basic perils 1) fire 2) Theft 3) volcanic eruption 4) smoke

In the homeowners forms a) the property coverage ____ in each form b) the liability coverage is ____in each form Answer:  a) varies b) the same

Which of the following could be covered by an unendorsed homeowners policy? a) mobile home b) home rented to another person c) home occupied by the insured and two boarders d) home owned and occupied by the insured Answer:  c) home occupied by the insured and two boarders d) home owned and occupied by the insured

Which homeowners form provides limited coverage for the dwelling and broad coverage for personal property? Answer: HO-6