Exam 24: Other Property and Liability Insurance Coverages

Which of the following statements about Dwelling Property 3 (special form)is (are)true? I.Personal property is covered on an "open perils" (all risks)basis. II.The dwelling and other structures are covered only for those perils specifically named in the policy.

Which of the following coverages are provided by an unendorsed ISO Dwelling Program form? I.Theft of personal property II.Named-perils coverage for personal property

Which of the following statements about the eligibility requirements for insuring mobile homes by endorsing a homeowners policy is (are)true? I.The mobile home must be designed for year-round living. II.The mobile home must be located in a fenced area with security guards.

Which of the following statements about coverage under the federal flood insurance program is (are)true? I.Subsidized coverage is available for contents,but not for dwellings. II.A $10,000 deductible applies to each loss.

Jan purchased a boat owners package policy.While using his boat,he negligently hit a pier.A person standing on the pier fell and was severely injured.Which of the boat owners package policy coverages will respond to a lawsuit filed as a result of this negligent act?

Which of the following statements is (are)true with regard to an unendorsed ISO Dwelling Form? I.Each form provides $100,000 in personal liability coverage. II.The Dwelling 3 form provides broader property coverage than the Dwelling 1 form.

The basic purpose of FAIR plans is to provide

Which of the following statements about federal flood insurance is true?

William would like to insure his home.He does not want theft or personal liability coverage; however,he would like "open perils" (all-risks)coverage on the dwelling.William should purchase a

Frank purchased a building in a run-down area of a city.When Frank was unable to obtain property insurance in the voluntary insurance market,an agent suggested that he contact a state pool created in the 1960s that makes property insurance available in riot-prone areas.The state pool the agent referred to is called a(n)

Perils insured under Dwelling Property 1 (basic form)include which of the following? I.Earthquake II.Smoke

Len is considering the purchase of a home.As a home is a large investment,Len wants to make sure that there are no liens,easements,or other encumbrances preventing him from an unchallenged right to possess and enjoy his property.Len can protect this right through the purchase of

Tina purchased a personal umbrella policy with a $1 million limit.Her insurer required her to carry liability limits of 250/500/50 under her auto insurance policy.The personal umbrella policy was written with a $1,000 self-insured retention.Tina was responsible for an auto accident in which the other driver was severely injured.The other driver's bodily injuries were $400,000 and the property damage was $20,000.How much will the insurer pay under Tina's umbrella policy?

Which of the following statements is (are)true about the National Flood Insurance Program? I.You can't purchase flood insurance through this program if your property is located in a high-flood-risk area. II.Coverage is not available for any property which has been flooded previously.

Which of the following statements about the federal flood insurance program is true?

The personal umbrella policy covers some personal injuries.Which of the following is considered a personal injury?

Which of the following statements about various coverages under a Personal Articles Floater is (are)true? I.Each item of jewelry is described and is insured for a specified amount. II.Stamp and coin collections can be insured on a blanket basis.

Reasons why an insured might add a scheduled personal property endorsement to a homeowners policy include which of the following? I.To lower the premium by limiting the perils covered II.To obtain higher limits for certain personal property

Tom and Nancy Boyle were surprised to learn that some of their valuable personal property-a gun collection,jewelry,a mink coat,and sterling silverware-was subject to internal limits under their homeowners policy.What separate insurance policy can the Boyles purchase to obtain the desired coverage on this personal property?

Tina purchased a personal umbrella policy with a $1 million limit and a $1,000 self-insured retention.Her insurer required her to carry a $300,000 liability limit under her homeowners policy.Tina was held responsible for slandering a public official.The public official won a $100,000 judgment against Tina.The insurer that wrote Tina's homeowners policy denied coverage.How much will the insurer pay under Tina's personal umbrella policy?