Question 1

Which of the following losses would be covered under Section II of an unendorsed Homeowners 3 policy?

Accepted Answer

A) The homeowner accidentally dropped a bowling ball,injuring another bowler's foot. 
B) The homeowner's nanny was injured on her day off while hiking at a state park. 
C) The insured slandered a city council member at a city council meeting. 
D) The homeowner's dog bit the homeowner's daughter. 
A) The homeowner accidentally dropped a bowling ball,injuring another bowler's foot. 
B) The homeowner's nanny was injured on her day off while hiking at a state park. 
C) The insured slandered a city council member at a city council meeting. 
D) The homeowner's dog bit the homeowner's daughter.

Question 2

All of the following situations are excluded from coverage under Section II of the homeowners policy EXCEPT

Accepted Answer

A) the rental of a spare bedroom which is used by the tenant as an office. 
B) the use of a rented airplane to take a vacation. 
C) the ownership of a ten-unit apartment house as an investment. 
D) the performance of professional services by the insured at the residence premises. 
A) the rental of a spare bedroom which is used by the tenant as an office. 
B) the use of a rented airplane to take a vacation. 
C) the ownership of a ten-unit apartment house as an investment. 
D) the performance of professional services by the insured at the residence premises.

Question 3

Which of the following losses would be covered under the personal liability coverage (Coverage E)of an unendorsed Homeowners 3 policy?

Accepted Answer

A) liability arising out of the manufacture and sale of illegal narcotics 
B) liability arising out of damage to a neighbor's property that occurred over time 
C) liability arising out of a business operated in the home. 
D) liability arising out of bodily injury to an insured 
A) liability arising out of the manufacture and sale of illegal narcotics 
B) liability arising out of damage to a neighbor's property that occurred over time 
C) liability arising out of a business operated in the home. 
D) liability arising out of bodily injury to an insured

Question 4

Which of the following statements about the additional coverage for damage to property of others in Section II of the homeowners policy is true?

Accepted Answer

A) The maximum amount of coverage is $25,000 per occurrence. 
B) Payments are made on the basis of the replacement cost of the damaged property. 
C) There is coverage for property damage arising out of a business engaged in on a full-time basis by an insured. 
D) There is coverage for intentional property damage by any insured who is a teenager. 
A) The maximum amount of coverage is $25,000 per occurrence. 
B) Payments are made on the basis of the replacement cost of the damaged property. 
C) There is coverage for property damage arising out of a business engaged in on a full-time basis by an insured. 
D) There is coverage for intentional property damage by any insured who is a teenager.

Question 5

Which of the following statements concerning the scheduled personal property endorsement with agreed value loss settlement is (are)true?
I.The endorsement provides open-perils ("all-risks")coverage on the scheduled property.
II.Losses under the endorsement are settled on an actual cash value 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

One of the "Tips for Buying a Homeowners Policy" is to consider purchasing a personal umbrella policy.What coverage is provided by a personal umbrella policy?

Accepted Answer

A) blanket property coverage for any damage caused by water 
B) excess liability coverage and coverage for some liability claims excluded by underlying policies 
C) all-risk,replacement cost,property coverage 
D) coverage for business and professional liability 
A) blanket property coverage for any damage caused by water 
B) excess liability coverage and coverage for some liability claims excluded by underlying policies 
C) all-risk,replacement cost,property coverage 
D) coverage for business and professional liability

Question 7

Which of the following statements about the personal liability coverage (Coverage E)of an unendorsed homeowners policy is true?

Accepted Answer

A) Coverage is written on an accident basis. 
B) Coverage is provided for bodily injury liability. 
C) Coverage is provided for business and professional liability. 
D) Coverage is provided for personal injury liability. 
A) Coverage is written on an accident basis. 
B) Coverage is provided for bodily injury liability. 
C) Coverage is provided for business and professional liability. 
D) Coverage is provided for personal injury liability.

Question 8

All of the following persons are insured for personal liability under the homeowners policy EXCEPT

Accepted Answer

A) children of the named insured under age 24 who are attending college full time and temporarily residing elsewhere. 
B) foster children under the age of 21 who reside with the named insured. 
C) nonresident employees of the named insured. 
D) the spouse of the named insured if a resident of the same household. 
A) children of the named insured under age 24 who are attending college full time and temporarily residing elsewhere. 
B) foster children under the age of 21 who reside with the named insured. 
C) nonresident employees of the named insured. 
D) the spouse of the named insured if a resident of the same household.

Question 9

A credit-based score that is highly predictive of future claims cost is an individual's

Accepted Answer

A) CLUE score. 
B) insurance score. 
C) motor vehicle record score. 
D) underwriting score. 
A) CLUE score. 
B) insurance score. 
C) motor vehicle record score. 
D) underwriting score.

Question 10

Which of the following statements regarding Section II conditions under the homeowners policy is true?

Accepted Answer

A) Other insurance is handled on a pro rata basis. 
B) Under no circumstances may the insured bring a lawsuit against the insurer. 
C) The liability limit is the same regardless of the number of persons injured in a covered occurrence. 
D) There is no requirement for the insured to submit written notification of a possible claim to the insurer. 
A) Other insurance is handled on a pro rata basis. 
B) Under no circumstances may the insured bring a lawsuit against the insurer. 
C) The liability limit is the same regardless of the number of persons injured in a covered occurrence. 
D) There is no requirement for the insured to submit written notification of a possible claim to the insurer.

Question 11

Factors that affect the cost of homeowners insurance include which of the following?
I.Construction material
II.Deductible amount

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 12

Which of the following situations is covered under Section II of an unendorsed homeowners policy?

Accepted Answer

A) injuries which occur at a park resulting from a motorcycle owned by the insured 
B) injuries resulting from an auto not subject to registration because it is in dead storage 
C) injuries resulting from an auto rented by the insured while on a vacation 
D) injuries resulting from a trailer being pulled by the insured's auto 
A) injuries which occur at a park resulting from a motorcycle owned by the insured 
B) injuries resulting from an auto not subject to registration because it is in dead storage 
C) injuries resulting from an auto rented by the insured while on a vacation 
D) injuries resulting from a trailer being pulled by the insured's auto

Question 13

All of the following are endorsements that can be added to an ISO Homeowners 3 policy EXCEPT

Accepted Answer

A) personal property replacement cost endorsement. 
B) scheduled personal property endorsement. 
C) earthquake endorsement. 
D) personal liability endorsement. 
A) personal property replacement cost endorsement. 
B) scheduled personal property endorsement. 
C) earthquake endorsement. 
D) personal liability endorsement.

Question 14

Which of the following statements regarding watercraft liability under Section II of an unendorsed HO-3 policy is (are)true?
I.No coverage is available for watercraft liability.
II.Liability arising out of the use of watercraft that are under certain length and horsepower limits is covered.

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 is (are)true concerning the home business insurance coverage endorsement?
I.It increases the coverage on business personal property at the insured residence from $2,500 to the Coverage C limit.
II.It excludes coverage for liability arising out of the home business.

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 16

Tom is planning to build a home.He is weighing many factors,including construction materials,location,and other considerations.Which of the following statements is true with regard to homeowners insurance and Tom's new home?

Accepted Answer

A) The higher the construction costs are in the area,the lower Tom's homeowners insurance premiums will be. 
B) The lower the homeowners deductible selected,the lower the premium will be. 
C) Older homes cost more to insure than newer homes. 
D) A wood frame home costs less to insure than a brick home. 
A) The higher the construction costs are in the area,the lower Tom's homeowners insurance premiums will be. 
B) The lower the homeowners deductible selected,the lower the premium will be. 
C) Older homes cost more to insure than newer homes. 
D) A wood frame home costs less to insure than a brick home.

Question 17

Which of the following situations would be covered under Section II of a homeowners policy?
I.The insured is sued by his girlfriend because he infected her with the AIDS virus.
II.The insured's son is sued after a friend suffered serious injury as a result of using illegal drugs sold to him by the son.

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 the scheduled personal property endorsement to the homeowners policy is (are)true?
I.It provides named-perils coverage on scheduled items.
II.It can be used to insure valuable items such as jewelry,silverware,and coin collections.

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

Which of the following losses would be covered under the medical payments coverage of the Homeowners 3 policy?

Accepted Answer

A) injuries to another person arising out of the insured's negligent operation of an automobile 
B) medical payments resulting from the transmission of a communicable disease 
C) injury to a resident employee at the insured's home 
D) workers compensation medical payments 
A) injuries to another person arising out of the insured's negligent operation of an automobile 
B) medical payments resulting from the transmission of a communicable disease 
C) injury to a resident employee at the insured's home 
D) workers compensation medical payments

Question 20

Gail lives near a fault line.She added an earthquake endorsement to her Homeowners 3 policy.All of the following statements about the endorsement are true EXCEPT

Accepted Answer

A) The deductible is expressed as a percentage of the coverage limit rather than as a dollar amount. 
B) The endorsement also covers landslides and volcanic eruptions. 
C) Aftershocks occurring within 72 hours of an earthquake are considered part of the same occurrence. 
D) The endorsement also covers flood losses. 
A) The deductible is expressed as a percentage of the coverage limit rather than as a dollar amount. 
B) The endorsement also covers landslides and volcanic eruptions. 
C) Aftershocks occurring within 72 hours of an earthquake are considered part of the same occurrence. 
D) The endorsement also covers flood losses.

Exam 23: Homeowners Insurance,section II

Which of the following losses would be covered under Section II of an unendorsed Homeowners 3 policy?

All of the following situations are excluded from coverage under Section II of the homeowners policy EXCEPT

Which of the following losses would be covered under the personal liability coverage (Coverage E)of an unendorsed Homeowners 3 policy?

Which of the following statements about the additional coverage for damage to property of others in Section II of the homeowners policy is true?

Which of the following statements concerning the scheduled personal property endorsement with agreed value loss settlement is (are)true? I.The endorsement provides open-perils ("all-risks")coverage on the scheduled property. II.Losses under the endorsement are settled on an actual cash value basis.

One of the "Tips for Buying a Homeowners Policy" is to consider purchasing a personal umbrella policy.What coverage is provided by a personal umbrella policy?

Which of the following statements about the personal liability coverage (Coverage E)of an unendorsed homeowners policy is true?

All of the following persons are insured for personal liability under the homeowners policy EXCEPT

A credit-based score that is highly predictive of future claims cost is an individual's

Which of the following statements regarding Section II conditions under the homeowners policy is true?

Factors that affect the cost of homeowners insurance include which of the following? I.Construction material II.Deductible amount

Which of the following situations is covered under Section II of an unendorsed homeowners policy?

All of the following are endorsements that can be added to an ISO Homeowners 3 policy EXCEPT

Which of the following statements regarding watercraft liability under Section II of an unendorsed HO-3 policy is (are)true? I.No coverage is available for watercraft liability. II.Liability arising out of the use of watercraft that are under certain length and horsepower limits is covered.

Which of the following statements is (are)true concerning the home business insurance coverage endorsement? I.It increases the coverage on business personal property at the insured residence from $2,500 to the Coverage C limit. II.It excludes coverage for liability arising out of the home business.

Tom is planning to build a home.He is weighing many factors,including construction materials,location,and other considerations.Which of the following statements is true with regard to homeowners insurance and Tom's new home?

Which of the following statements about the scheduled personal property endorsement to the homeowners policy is (are)true? I.It provides named-perils coverage on scheduled items. II.It can be used to insure valuable items such as jewelry,silverware,and coin collections.

Which of the following losses would be covered under the medical payments coverage of the Homeowners 3 policy?

Gail lives near a fault line.She added an earthquake endorsement to her Homeowners 3 policy.All of the following statements about the endorsement are true 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

Other Property and Liability Insurance Coverages

Commercial Property Insurance

Commercial Liability Insurance

Crime Insurance and Surety Bonds

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