Question 1

All of the following are considered floods under the federal flood insurance program EXCEPT

Accepted Answer

A) the overflow of tidal waters. 
B) the accumulation of surface water after a heavy rain. 
C) a mudslide caused by an accumulation of water after a heavy rain. 
D) wind-driven rain which enters a dwelling through storm-damaged doors or windows. 
A) the overflow of tidal waters. 
B) the accumulation of surface water after a heavy rain. 
C) a mudslide caused by an accumulation of water after a heavy rain. 
D) wind-driven rain which enters a dwelling through storm-damaged doors or windows. D

Question 2

The personal umbrella policy covers personal injury.All of the following are considered personal injury EXCEPT

Accepted Answer

A) invasion of privacy. 
B) property damage. 
C) defamation of character. 
D) slander. 
A) invasion of privacy. 
B) property damage. 
C) defamation of character. 
D) slander. B

Question 3

All of the following statements about the federal flood insurance program are true EXCEPT

Accepted Answer

A) Under the write-your-own program,each insurer services the policies it writes. 
B) The regular portion of the program allows the purchase of higher amounts of coverage than are available under the emergency portion of the program. 
C) The program is designed to be financially self-supporting for the average historical loss year. 
D) The maximum amount of coverage that can be written on any single dwelling is $25,000. 
A) Under the write-your-own program,each insurer services the policies it writes. 
B) The regular portion of the program allows the purchase of higher amounts of coverage than are available under the emergency portion of the program. 
C) The program is designed to be financially self-supporting for the average historical loss year. 
D) The maximum amount of coverage that can be written on any single dwelling is $25,000. D

Question 4

All of the following are ISO personal umbrella liability policy exclusions EXCEPT

Accepted Answer

A) liability arising out of uncompensated board service for a nonprofit organization. 
B) liability arising out of expected or intentional injury. 
C) liability arising out of business operations. 
D) liability arising out of operation of watercraft not covered by an underlying policy. 
A) liability arising out of uncompensated board service for a nonprofit organization. 
B) liability arising out of expected or intentional injury. 
C) liability arising out of business operations. 
D) liability arising out of operation of watercraft not covered by an underlying policy.

Question 5

Which of the following statements about the Personal Articles Floater is (are)true?
I.It is designed to cover several classes of personal property.
II.Coverage is written on an "open perils" (all-risks)basis.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II 
A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 6

Which of the following statements concerning FAIR plans is (are)true?
I.All property is eligible for coverage regardless of physical condition.
II.Losses and expenses are shared by insurers who participate in a plan.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II 
A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 7

Which of the following statements about mobile home insurance is (are)true?
I.Coverage for the mobile home may be written on either a replacement cost basis or an actual cash value basis,depending on how much the mobile home has depreciated.
II.An additional coverage pays,up to a specified dollar limit,for the cost of transporting the mobile home to a safe place when it is endangered by a covered peril.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II 
A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 8

All of the following statements about the boatowners package policy are true EXCEPT

Accepted Answer

A) Physical damage coverage for the boat is usually written to cover all losses except those losses specifically excluded. 
B) Liability coverage is provided for bodily injury only. 
C) Some policies provide optional uninsured boaters coverage. 
D) Medical payments coverage for water-skiers is available under the policy. 
A) Physical damage coverage for the boat is usually written to cover all losses except those losses specifically excluded. 
B) Liability coverage is provided for bodily injury only. 
C) Some policies provide optional uninsured boaters coverage. 
D) Medical payments coverage for water-skiers is available under the policy.

Question 9

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?

Accepted Answer

A) nothing 
B) $149,000 
C) $150,000 
D) $170,000 
A) nothing 
B) $149,000 
C) $150,000 
D) $170,000

Question 10

Jerry built a home in a flood plain.He did not purchase flood insurance.Recently,a noted meteorologist predicted torrential rains for the area for the next 7 days.Jerry attempted to purchase flood insurance through the National Flood Insurance Program.Which flood insurance provision is likely to block Jerry's efforts to obtain coverage for protection against the predicted torrential rain?

Accepted Answer

A) waiting period 
B) definition of covered flood 
C) deductible 
D) insurance limit 
A) waiting period 
B) definition of covered flood 
C) deductible 
D) insurance limit

Question 11

All of the following are perils covered under Dwelling Property 2 (broad form)EXCEPT

Accepted Answer

A) weight of ice,snow,or sleet. 
B) flood. 
C) sudden and accidental damage from an artificially generated electrical current. 
D) freezing of a plumbing or heating system. 
A) weight of ice,snow,or sleet. 
B) flood. 
C) sudden and accidental damage from an artificially generated electrical current. 
D) freezing of a plumbing or heating system.

Question 12

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.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II 
A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 13

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.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II 
A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 14

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.

Accepted Answer

A) I only 
B) II only 
C) both I and II 
D) neither I nor II 
A) I only 
B) II only 
C) both I and II 
D) neither I nor II

Question 15

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

Accepted Answer

A) Homeowners 3 Policy. 
B) Dwelling Property 1 Form. 
C) Dwelling Property 2 Form. 
D) Dwelling Property 3 Form. 
A) Homeowners 3 Policy. 
B) Dwelling Property 1 Form. 
C) Dwelling Property 2 Form. 
D) Dwelling Property 3 Form.

Question 16

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)

Accepted Answer

A) unsatisfied judgment fund. 
B) FAIR plan. 
C) guaranty fund plan. 
D) assigned risk plan. 
A) unsatisfied judgment fund. 
B) FAIR plan. 
C) guaranty fund plan. 
D) assigned risk plan.

Question 17

All of the following are characteristics of most inland marine floater policies EXCEPT

Accepted Answer

A) The insurance can be tailored to the specific type of personal property insured. 
B) The insured can select higher limits of coverage than are available under an unendorsed homeowners policy. 
C) Coverage is normally written on a named-perils basis. 
D) Covered property is insured anywhere in the world. 
A) The insurance can be tailored to the specific type of personal property insured. 
B) The insured can select higher limits of coverage than are available under an unendorsed homeowners policy. 
C) Coverage is normally written on a named-perils basis. 
D) Covered property is insured anywhere in the world.

Question 18

Martin would like to insure valuable personal property limited in coverage by his homeowners policy.Martin has two options.He can purchase the coverage through a separate personal articles floater policy or he can add an endorsement to his homeowners policy.The endorsement is called the

Accepted Answer

A) extended coverage endorsement. 
B) scheduled personal property endorsement. 
C) personal injury endorsement. 
D) replacement cost endorsement. 
A) extended coverage endorsement. 
B) scheduled personal property endorsement. 
C) personal injury endorsement. 
D) replacement cost endorsement.

Question 19

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

Accepted Answer

A) extended coverage insurance. 
B) replacement cost insurance. 
C) personal umbrella insurance. 
D) title insurance. 
A) extended coverage insurance. 
B) replacement cost insurance. 
C) personal umbrella insurance. 
D) title insurance.

Question 20

Which of the following statements about Dwelling Property 1 (basic form)is true?

Accepted Answer

A) Coverage on the dwelling is written on a replacement cost basis. 
B) The full amount of personal property coverage applies to property away from the insured premises. 
C) Coverage for fair rental value of the dwelling is subject to both an overall maximum and a monthly maximum. 
D) "All-risk" coverage is automatically provided for both the dwelling and personal property. 
A) Coverage on the dwelling is written on a replacement cost basis. 
B) The full amount of personal property coverage applies to property away from the insured premises. 
C) Coverage for fair rental value of the dwelling is subject to both an overall maximum and a monthly maximum. 
D) "All-risk" coverage is automatically provided for both the dwelling and personal property.

Exam 24: Other Property and Liability Insurance Coverages

All of the following are considered floods under the federal flood insurance program EXCEPT

The personal umbrella policy covers personal injury.All of the following are considered personal injury EXCEPT

All of the following statements about the federal flood insurance program are true EXCEPT

All of the following are ISO personal umbrella liability policy exclusions EXCEPT

Which of the following statements about the Personal Articles Floater is (are)true? I.It is designed to cover several classes of personal property. II.Coverage is written on an "open perils" (all-risks)basis.

Which of the following statements concerning FAIR plans is (are)true? I.All property is eligible for coverage regardless of physical condition. II.Losses and expenses are shared by insurers who participate in a plan.

All of the following statements about the boatowners package policy are true EXCEPT

All of the following are perils covered under Dwelling Property 2 (broad form)EXCEPT

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.

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 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.

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

All of the following are characteristics of most inland marine floater policies EXCEPT

Martin would like to insure valuable personal property limited in coverage by his homeowners policy.Martin has two options.He can purchase the coverage through a separate personal articles floater policy or he can add an endorsement to his homeowners policy.The endorsement is called the

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

Which of the following statements about Dwelling Property 1 (basic form)is true?

Risk in Our Society

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