Exam 24: Other Property and Liability Insurance Coverages

Andrea purchased an auto insurance policy with bodily injury liability limits of 250/500 ($250,000/$500,000).She also purchased a personal umbrella policy with a $1 million limit and a $500 self-insured retention.Andrea was talking on her cell phone while driving,and her car struck and killed a pedestrian in a crosswalk.The court ordered her to pay $750,000 to the spouse of the person she killed.How will this claim be settled?

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

Paul has a personal auto policy with a per-person liability limit of $300,000.He also has a personal umbrella policy with a limit of $2,000,000 and a self-insured retention of $1,000.How much will be paid by each policy if a person wins a judgment of $500,000 against Paul as a result of bodily injury arising from the auto accident?

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)

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.

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?

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

Which of the following statements about title insurance is true?

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?

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

Steve and Mary are art collectors.They own lithographs,etchings,and vintage photographs valued at over $250,000.Steve and Mary display their art collection at their home.They can insure this valuable personal property through a

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

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?

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 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.

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

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.

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.

The basic purpose of FAIR plans is to provide