Insurance MCQ

June has two buildings on her property, for which she wants to get Flood coverage. One is her main dwelling and the other is her guest house. How will her policies be set up? a. Her main dwelling will be covered fully, while her guest house will be under Coverage B. b. She can get coverage for her guest house through an endorsement. c. Each building needs its own policy. d. Flood coverage protects all buildings on the land. Answer: C

Juan and Katy's home is built in an area where mines were dug years ago. The mines have long since been closed, but there is the possibility that homes built in the area may be built over one of these abandoned mines. What coverage should Juan and Katy purchase to protect their home from the risk of sinking into one of these abandoned mines? a. HO-5 Comprehensive coverage b. Sinkhole coverage c. Mine subsidence coverage d. Earthquake coverage Answer: C

Which of the following is best described as covering to a specific limit any cause of loss that leaves the property in a different condition than it was before, excluding fire and extended coverage perils? a. Mine Subsidence Insurance b. Joint Reinsurance Pool c. Risk Management Agency (RMA) d. Difference in Conditions Answer: D

Which of the following properties would be eligible for a NFIP policy? a. Structures that are mainly containers or storage units for gas or liquid storage b. Walled and roofed buildings that are fixed to a permanent site, and are mainly above ground c. Newly constructed buildings that are in, on, or above the water d. Underground structures and equipment, such as wells and septic tanks Answer: B

Which Aviation Insurance covers the insured in the event of the insured's negligent acts and/or omissions which result in a loss? a. Aircraft hull b. Aircraft liability c. Aviation cargo d. Aviation insurance Answer: B

The maximum amount a single-family residence can be assured under the NFIP is: a. $185,000. b. $250,000. c. $ 35,000. d. $100,000. Answer: B

Which of the following are covered under Boatowner's insurance? a. Theft b. Damage to the boat, hull and propeller c. All are correct. d. Liability from use of the boat Answer: C

Freight Insurance indemnifies the ship owner from loss of income that would have been earned: a. If the ship owner could have made a 15% profit. b. If the ship had completed its voyage. c. If the ship owner only owns the one ship. d. If the ship only sails in the Pacific. Answer: B

Which is not covered in a definition of flood? a. wind blown rain b. mudslide c. Shoreline erosion d. river overflow Answer: A

What will make an individual/property ineligible to be included in a FAIR Plan? a. They must have a structural problem making some risk more likely. b. Property must be an insurable risk. c. Owner must have made an attempt to obtain insurance through the private market and been denied coverage. d. Property must be located in a specific area. Answer: A