Question 1

Choose the one most appropriate answer for each.
-this would pay for damage from the outflow of inland or title waters

Accepted Answer

A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy 
A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy

Question 2

An endorsement that periodically increase insurance coverage is known as ____________________ guard.

Accepted Answer

The answer of An endorsement that periodically increase insurance coverage...

Question 3

A typical HO-A homeowner's policy covers damage caused by

Accepted Answer

A)  mudflow. 
B)  civil war. 
C)  freezing water pipes. 
D)  earthquakes. 
A)  mudflow. 
B)  civil war. 
C)  freezing water pipes. 
D)  earthquakes.

Question 4

Coverage under any homeowner policy can be extended by adding endorsements covering

Accepted Answer

A)  appreciation on the value of the property. 
B)  worker's compensation. 
C)  both a and b. 
D)  neither a nor b. 
A)  appreciation on the value of the property. 
B)  worker's compensation. 
C)  both a and b. 
D)  neither a nor b.

Question 5

The war clause exemption in property insurance policies includes losses or damage caused by

Accepted Answer

A)  insurrection. 
B)  enemy attack. 
C)  usurped power. 
D)  all of the above. 
A)  insurrection. 
B)  enemy attack. 
C)  usurped power. 
D)  all of the above.

Question 6

Choose the one most appropriate answer for each.
-a financial interest that can be insured

Accepted Answer

A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy 
A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy

Question 7

"New for old" means that the policy pays replacement cost.

Accepted Answer

A) True 
 B)False

Question 8

Actual cash value is the new price minus accumulated depreciation and is, in effect, "new for old".

Accepted Answer

A) True 
 B)False

Question 9

"Old for old" means that the policy pays only the depreciated cost.

Accepted Answer

A) True 
 B)False

Question 10

The purchaser of a new home may protect himself against loss due to structural defects by

Accepted Answer

A)  having the home inspected before purchase. 
B)  purchasing insurance under the Home Owners Warranty Program. 
C)  both a and b. 
D)  neither a nor b. 
A)  having the home inspected before purchase. 
B)  purchasing insurance under the Home Owners Warranty Program. 
C)  both a and b. 
D)  neither a nor b.

Question 11

The concept of insurance is to

Accepted Answer

A)  reimburse the insured for financial losses. 
B)  insure that a loss-causing event will not occur. 
C)  both a and b. 
D)  neither a nor b. 
A)  reimburse the insured for financial losses. 
B)  insure that a loss-causing event will not occur. 
C)  both a and b. 
D)  neither a nor b.

Question 12

Choose the one most appropriate answer for each.
-one who is covered by insurance

Accepted Answer

A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy 
A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy

Question 13

If a property is rented, the landlord should make certain that he has

Accepted Answer

A)  adequate liability coverage. 
B)  adequate property damage coverage. 
C)  adequate property damage and liability coverage. 
D)  the renter purchases all insurance. 
A)  adequate liability coverage. 
B)  adequate property damage coverage. 
C)  adequate property damage and liability coverage. 
D)  the renter purchases all insurance.

Question 14

Choose the one most appropriate answer for each.
-provides broad form coverage for personal property and reimbursement of any loss of use of rental property

Accepted Answer

A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy 
A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy

Question 15

Among the following, who does NOT hold an insurable interest?

Accepted Answer

A)  A property owner. 
B)  The listing broker. 
C)  A mortgage lender. 
D)  The tenant. 
A)  A property owner. 
B)  The listing broker. 
C)  A mortgage lender. 
D)  The tenant.

Question 16

Choose the one most appropriate answer for each.
-an agreement by the insurance company to extend coverage to perils not covered in the basic policy

Accepted Answer

A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy 
A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy

Question 17

A landlord package policy provides coverage for

Accepted Answer

A)  property damage. 
B)  liability. 
C)  loss of rents. 
D)  all of the above. 
A)  property damage. 
B)  liability. 
C)  loss of rents. 
D)  all of the above.

Question 18

In a typical homeowner's policy, section I deals with losses to the insured's property and section II covers liability of the insured and family.

Accepted Answer

A) True 
 B)False

Question 19

Flood insurance can be purchased for

Accepted Answer

A)  structures and contents. 
B)  public liability. 
C)  medical expenses. 
D)  damages and legal costs. 
A)  structures and contents. 
B)  public liability. 
C)  medical expenses. 
D)  damages and legal costs.

Question 20

Choose the one most appropriate answer for each.
-warrants against defects caused by faulty workmanship or materials and against major structural defects

Accepted Answer

A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy 
A) all-risks policy 
B) actual cash value 
C) broad form (HO-2) 
D) endorsement 
E) flood insurance
F)form HO-4
G)form HO-6
H)homeowner policy
I)homeowner's warranty
J)inflation guard
K)insurable interest
L)insurance premium
M)insured
N)medical payments
O)new for old
P)old for old
Q)peril
R)public liability
S)tenant's policy
T)worker's compensation policy

Exam 23: Property Insurance

Choose the one most appropriate answer for each. -this would pay for damage from the outflow of inland or title waters

An endorsement that periodically increase insurance coverage is known as ____________________ guard.

A typical HO-A homeowner's policy covers damage caused by

Coverage under any homeowner policy can be extended by adding endorsements covering

The war clause exemption in property insurance policies includes losses or damage caused by

Choose the one most appropriate answer for each. -a financial interest that can be insured

"New for old" means that the policy pays replacement cost.

Actual cash value is the new price minus accumulated depreciation and is, in effect, "new for old".

"Old for old" means that the policy pays only the depreciated cost.

The purchaser of a new home may protect himself against loss due to structural defects by

The concept of insurance is to

Choose the one most appropriate answer for each. -one who is covered by insurance

If a property is rented, the landlord should make certain that he has

Choose the one most appropriate answer for each. -provides broad form coverage for personal property and reimbursement of any loss of use of rental property

Among the following, who does NOT hold an insurable interest?

Choose the one most appropriate answer for each. -an agreement by the insurance company to extend coverage to perils not covered in the basic policy

A landlord package policy provides coverage for

In a typical homeowner's policy, section I deals with losses to the insured's property and section II covers liability of the insured and family.

Flood insurance can be purchased for

Choose the one most appropriate answer for each. -warrants against defects caused by faulty workmanship or materials and against major structural defects

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