Question 1

A typical homeowner insurance policy does not cover

Accepted Answer

A)  the dwelling. 
B)  living expenses while damage to the residence is being repaired. 
C)  personal property within the dwelling. 
D)  automobiles in the garage on the property. 
A)  the dwelling. 
B)  living expenses while damage to the residence is being repaired. 
C)  personal property within the dwelling. 
D)  automobiles in the garage on the property.

Question 2

A property damage or public liability policy

Accepted Answer

A)  can be cancelled at any time by the insured. 
B)  cannot be cancelled by the insured. 
C)  can be cancelled at any time by the insurer. 
D)  can be cancelled only after 30 day's notice by either party. 
A)  can be cancelled at any time by the insured. 
B)  cannot be cancelled by the insured. 
C)  can be cancelled at any time by the insurer. 
D)  can be cancelled only after 30 day's notice by either party.

Question 3

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

Accepted Answer

The answer of Actual ____________________ value s the new price...

Question 4

Policies that cover a large number of named perils are known as ____________________ form policies (HO-2).

Accepted Answer

The answer of Policies that cover a large number of...

Question 5

An insurer may suspend an insurance policy if the insured allows the hazard exposure to the insurer to increase beyond the risks contemplated when the policy was issued.

Accepted Answer

A) True 
 B)False

Question 6

____________________ liability, also called public liability, is the financial responsibility one has toward others as a result of one's actions or failure to take action.

Accepted Answer

The answer of ____________________ liability, also called public liability, is...

Question 7

Choose the one most appropriate answer for each.
-pays for the treatment of injuries without the need to determine fault

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 8

Typically, an owner of real estate is not exposed to losses by other persons being injured on his property.

Accepted Answer

A) True 
 B)False

Question 9

Choose the one most appropriate answer for each.
-the financial responsibility one has toward others

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 10

If a liability claim arises under Section II of a homeowner's policy, the insurance company will pay for

Accepted Answer

A)  damages up to the policy limits. 
B)  damages up to the policy limits plus the legal costs of defense. 
C)  damages and legal costs up to the policy limit. 
D)  damages beyond policy limits in certain cases. 
A)  damages up to the policy limits. 
B)  damages up to the policy limits plus the legal costs of defense. 
C)  damages and legal costs up to the policy limit. 
D)  damages beyond policy limits in certain cases.

Question 11

Fire insurance is the foundation of property damage policies.

Accepted Answer

A) True 
 B)False

Question 12

All of the following mortgages require either flood insurance or a certificate that the mortgaged property is not in a flood zone EXCEPT

Accepted Answer

A)  VA-guaranteed mortgages. 
B)  FHA-insured mortgages. 
C)  mortgages carried back by sellers. 
D)  conventional mortgages secured from federally chartered savings and loans associations. 
A)  VA-guaranteed mortgages. 
B)  FHA-insured mortgages. 
C)  mortgages carried back by sellers. 
D)  conventional mortgages secured from federally chartered savings and loans associations.

Question 13

The insured is one who is ____________________ by insurance.

Accepted Answer

The answer of The insured is one who is ____________________...

Question 14

The New York fire insurance form

Accepted Answer

A)  was originally enacted by the legislature of New York state. 
B)  provides the foundation for most property damage insurance policies in this country. 
C)  both a and b. 
D)  neither a nor b. 
A)  was originally enacted by the legislature of New York state. 
B)  provides the foundation for most property damage insurance policies in this country. 
C)  both a and b. 
D)  neither a nor b.

Question 15

A landlord policy combines property damage, liability, medical payments, and loss of ____________________.

Accepted Answer

The answer of A landlord policy combines property damage, liability,...

Question 16

____________________ insurance is the foundation of property damage policies.

Accepted Answer

The answer of ____________________ insurance is the foundation of property...

Question 17

An agreement by the insurance company to extend coverage to perils not covered by the basic policy is called an insurable interest.

Accepted Answer

A) True 
 B)False

Question 18

An insurance endorsement is also known as

Accepted Answer

A)  a rider. 
B)  an attachment. 
C)  an assignment. 
D)  both a and b. 
A)  a rider. 
B)  an attachment. 
C)  an assignment. 
D)  both a and b.

Question 19

To cover personal property and any additions or alterations to the unit not insured by the association's policy, a condominium unit owner's form (HO-6)is available.

Accepted Answer

A) True 
 B)False

Question 20

Choose the one most appropriate answer for each.
-the amount of money paid for insurance coverage

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

A typical homeowner insurance policy does not cover

A property damage or public liability policy

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

Policies that cover a large number of named perils are known as ____________________ form policies (HO-2).

An insurer may suspend an insurance policy if the insured allows the hazard exposure to the insurer to increase beyond the risks contemplated when the policy was issued.

____________________ liability, also called public liability, is the financial responsibility one has toward others as a result of one's actions or failure to take action.

Choose the one most appropriate answer for each. -pays for the treatment of injuries without the need to determine fault

Typically, an owner of real estate is not exposed to losses by other persons being injured on his property.

Choose the one most appropriate answer for each. -the financial responsibility one has toward others

If a liability claim arises under Section II of a homeowner's policy, the insurance company will pay for

Fire insurance is the foundation of property damage policies.

All of the following mortgages require either flood insurance or a certificate that the mortgaged property is not in a flood zone EXCEPT

The insured is one who is ____________________ by insurance.

The New York fire insurance form

A landlord policy combines property damage, liability, medical payments, and loss of ____________________.

____________________ insurance is the foundation of property damage policies.

An agreement by the insurance company to extend coverage to perils not covered by the basic policy is called an insurable interest.

An insurance endorsement is also known as

To cover personal property and any additions or alterations to the unit not insured by the association's policy, a condominium unit owner's form (HO-6)is available.

Choose the one most appropriate answer for each. -the amount of money paid for insurance coverage

Nature and Description of Real Estate

Rights and Interests in Land

Forms of Ownership

Transferring Title

Recordation Abstracts and Title Insurance

Contract Law

Real Estate Sales Contracts

Mortgage and Note

Deed of Trust

Lending Practices

The Loan and the Consumer

Sources of Financing

Types of Financing

Taxes and Assessments

Title Closing and Escrow

Real Estate Leases

Real Estate Appraisal

Licensing Laws and Professional Affiliation

The Principal-Broker Relationship: Employment

The Principal-Broker Relationship: Agency

Fair Housing, Ada, Equal Credit, and Community Reinvestment

Condominiums, Cooperatives, Puds, and Timeshares

Land-Use Control

Real Estate and the Economy

Investing in Real Estate

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