Question 1

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

Accepted Answer

A) Under the write-your-own program,each insurer services the policies it writes. 
B) The regular portion of the program does not allow the purchase of higher amounts of coverage than are available under the emergency portion of the program. 
C) No coverage is available for property owners in areas where flooding has occurred previously. 
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 does not allow the purchase of higher amounts of coverage than are available under the emergency portion of the program. 
C) No coverage is available for property owners in areas where flooding has occurred previously. 
D) The maximum amount of coverage that can be written on any single dwelling is $25,000.

Question 2

Mark 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?

Accepted Answer

A) physical damage coverage 
B) liability coverage 
C) medical expense coverage 
D) uninsured boaters coverage 
A) physical damage coverage 
B) liability coverage 
C) medical expense coverage 
D) uninsured boaters coverage

Question 3

Which of the following perils is covered under the Dwelling Property 2 (broad form)policy?

Accepted Answer

A) weight of ice,snow,or sleet 
B) flood 
C) theft 
D) earthquake 
A) weight of ice,snow,or sleet 
B) flood 
C) theft 
D) earthquake

Question 4

Which statement is true about medical expense coverage under the boatowners package policy?

Accepted Answer

A) It pays the medical expenses of a covered person who is injured while in the boat. 
B) It pays the medical expenses of another boat operator who is injured as a result of negligent operation of the boat by the insured. 
C) It pays the medical expenses of a swimmer or a water skier being towed by another boat if he or she is hit by the insured's boat. 
D) It pays the medical expenses of someone on a dock or pier if the insured's boat hits the dock or pier and injures him or her. 
A) It pays the medical expenses of a covered person who is injured while in the boat. 
B) It pays the medical expenses of another boat operator who is injured as a result of negligent operation of the boat by the insured. 
C) It pays the medical expenses of a swimmer or a water skier being towed by another boat if he or she is hit by the insured's boat. 
D) It pays the medical expenses of someone on a dock or pier if the insured's boat hits the dock or pier and injures him or her.

Question 5

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

Accepted Answer

A) It is available even if property has been previously flooded. 
B) It is unavailable in high-risk flood areas. 
C) It is available only for residences,not for businesses. 
D) Waiting periods are not used in the federal flood insurance program. 
A) It is available even if property has been previously flooded. 
B) It is unavailable in high-risk flood areas. 
C) It is available only for residences,not for businesses. 
D) Waiting periods are not used in the federal flood insurance program.

Question 6

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 7

Which of the following statements about mobile home insurance under the ISO program is true?

Accepted Answer

A) The mobile home is insured on a replacement cost basis,but actual cash value coverage can be added by endorsement if it is more appropriate. 
B) There is no coverage available for "other structures." 
C) Built-in,permanently attached furniture is considered personal property. 
D) Personal liability insurance is not part of the coverage available to mobile home owners. 
A) The mobile home is insured on a replacement cost basis,but actual cash value coverage can be added by endorsement if it is more appropriate. 
B) There is no coverage available for "other structures." 
C) Built-in,permanently attached furniture is considered personal property. 
D) Personal liability insurance is not part of the coverage available to mobile home owners.

Question 8

Which of the following statements about a typical personal umbrella policy is (are)true?
I.Losses covered under an underlying policy and the umbrella policy are settled on a pro rata basis.
II.Losses not covered by the basic underlying contracts are subject to a self-insured retention which typically is at least $25,000.

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 9

All of the following statements about the National Flood Insurance Program (NFIP)are true EXCEPT

Accepted Answer

A) the program will insure structures that were previously flooded. 
B) the program is experiencing increasing competition from private insurers. 
C) the program continues to generate large profits and is running at a surplus. 
D) the program is now using reinsurance to protect against catastrophic loss. 
A) the program will insure structures that were previously flooded. 
B) the program is experiencing increasing competition from private insurers. 
C) the program continues to generate large profits and is running at a surplus. 
D) the program is now using reinsurance to protect against catastrophic loss.

Question 10

Carolyn is considering the purchase of a large (60-foot)boat.She called her insurance agent to see if she needs a separate policy for the boat.The agent said that a special category of insurance policies was designed to insure large watercraft.These policies are called

Accepted Answer

A) yacht insurance policies. 
B) flood insurance policies. 
C) floater policies. 
D) Dwelling Property 3 (special form)policies. 
A) yacht insurance policies. 
B) flood insurance policies. 
C) floater policies. 
D) Dwelling Property 3 (special form)policies.

Question 11

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 12

All of the following statements about yacht insurance are true EXCEPT

Accepted Answer

A) Property damage coverage includes damage from insects,weathering,and wear and tear. 
B) Liability coverage includes the cost of raising,removing,or destroying a sunken or wrecked yacht. 
C) Coverage can be added for maritime workers covered by the United States Longshoremen and Harbor Workers Compensation Act. 
D) Medical payments coverage pays for medical expenses because of accidental bodily injury. 
A) Property damage coverage includes damage from insects,weathering,and wear and tear. 
B) Liability coverage includes the cost of raising,removing,or destroying a sunken or wrecked yacht. 
C) Coverage can be added for maritime workers covered by the United States Longshoremen and Harbor Workers Compensation Act. 
D) Medical payments coverage pays for medical expenses because of accidental bodily injury.

Question 13

Valerie's home does not qualify for coverage under a standard homeowners policy.Valerie would like to have "open-perils" (all-risks)coverage on her dwelling and named-perils coverage on her personal property.Which of the following policies should Valerie purchase?

Accepted Answer

A) Dwelling Property 1-Basic Form 
B) Dwelling Property 2- Broad Form 
C) Dwelling Property 3-Special Form 
D) All of these policies provide "open perils" coverage on the dwelling and named-perils coverage on personal property. 
A) Dwelling Property 1-Basic Form 
B) Dwelling Property 2- Broad Form 
C) Dwelling Property 3-Special Form 
D) All of these policies provide "open perils" coverage on the dwelling and named-perils coverage on personal property.

Question 14

Which of the following statements is (are)true with regard to an unendorsed ISO Dwelling Form?
I.The Dwelling forms provide theft coverage and personal liability insurance.
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

Which of the following statements about types of property covered under the Personal Articles Floater is true?

Accepted Answer

A) Golfer's equipment is covered only in the United States. 
B) Furs are covered on a blanket basis without the necessity to schedule individual items. 
C) A higher premium must be paid to insure musical instruments if they are played for pay. 
D) Coverage for silverware and goldware is not available under the Personal Articles Floater. 
A) Golfer's equipment is covered only in the United States. 
B) Furs are covered on a blanket basis without the necessity to schedule individual items. 
C) A higher premium must be paid to insure musical instruments if they are played for pay. 
D) Coverage for silverware and goldware is not available under the Personal Articles Floater.

Question 16

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 17

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

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 18

Which of the following statements about Dwelling Property 3 (special form)is (are)true?
I.Personal property is covered only for those perils specifically named in the policy.
II.The dwelling and other structures are covered 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 19

All of the following are exclusions in the ISO Personal Umbrella Policy EXCEPT

Accepted Answer

A) liability arising from intentional injury. 
B) business liability. 
C) liability arising from bodily injury. 
D) directors and officers liability. 
A) liability arising from intentional injury. 
B) business liability. 
C) liability arising from bodily injury. 
D) directors and officers liability.

Question 20

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?

Accepted Answer

A) nothing 
B) $49,000 
C) $99,000 
D) $100,000 
A) nothing 
B) $49,000 
C) $99,000 
D) $100,000

Exam 24: Other Property and Liability Insurance Coverages

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

Mark 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 perils is covered under the Dwelling Property 2 (broad form)policy?

Which statement is true about medical expense coverage under the boatowners package policy?

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

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

Which of the following statements about mobile home insurance under the ISO program is true?

All of the following statements about the National Flood Insurance Program (NFIP)are true EXCEPT

Carolyn is considering the purchase of a large (60-foot)boat.She called her insurance agent to see if she needs a separate policy for the boat.The agent said that a special category of insurance policies was designed to insure large watercraft.These policies are called

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

All of the following statements about yacht insurance are true EXCEPT

Valerie's home does not qualify for coverage under a standard homeowners policy.Valerie would like to have "open-perils" (all-risks)coverage on her dwelling and named-perils coverage on her personal property.Which of the following policies should Valerie purchase?

Which of the following statements is (are)true with regard to an unendorsed ISO Dwelling Form? I.The Dwelling forms provide theft coverage and personal liability insurance. II.The Dwelling 3 form provides broader property coverage than the Dwelling 1 form.

Which of the following statements about types of property covered under the Personal Articles Floater is true?

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

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

All of the following are exclusions in the ISO Personal Umbrella Policy EXCEPT

Risk and Its Treatment

Insurance and Risk

Introduction to Risk Management

Enterprise Risk Management

Types of Insurers and Marketing Systems

Insurance Company Operations

Financial Operations of Insurers

Government Regulation of Insurance

Fundamental Legal Principles

Analysis of Insurance Contracts

Life Insurance

Life Insurance and Contractual Provisions

Buying Life Insurance

Annuities and Individual Retirement Accounts

Health-Care Reform;individual Health Insurance Coverages

Employee Benefits: Group Life and Health Insurance

Employee Benefits: Retirement Plans

Social Insurance

The Liability Risk

Auto Insurance

Auto Insurance Continued

Homeowners Insurance,section I

Homeowners Insurance,section II

Commercial Property Insurance

Commercial Liability Insurance

Crime Insurance and Surety Bonds

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