Question 1

If the insured wishes to cancel his New York fire form policy,

Accepted Answer

A)  he must give a 5-day notice. 
B)  he will receive a prorated refund. 
C)  his refund will be based on short-rate premiums. 
D)  he will receive no refund. 
A)  he must give a 5-day notice. 
B)  he will receive a prorated refund. 
C)  his refund will be based on short-rate premiums. 
D)  he will receive no refund.

Question 2

The money paid for insurance is called the insurance

Accepted Answer

A)  rider. 
B)  endorsement. 
C)  peril. 
D)  premium. 
A)  rider. 
B)  endorsement. 
C)  peril. 
D)  premium.

Question 3

Generally, a property owner is liable when there exists a legal duty to exercise reasonable care and the property owner fails to do so.

Accepted Answer

A) True 
 B)False

Question 4

The financial responsibility which one has to others as a result of one's actions or negligence is known as

Accepted Answer

A)  personal liability. 
B)  public liability. 
C)  both a and b. 
D)  neither a nor b. 
A)  personal liability. 
B)  public liability. 
C)  both a and b. 
D)  neither a nor b.

Question 5

The New York fire insurance form does not provide coverage for losses

Accepted Answer

A)  by fire. 
B)  by lightning. 
C)  sustained while removing property from damaged premises. 
D)  by flood. 
A)  by fire. 
B)  by lightning. 
C)  sustained while removing property from damaged premises. 
D)  by flood.

Question 6

Choose the one most appropriate answer for each.
-pays current cost of replacement less depreciation

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

An endorsement, also called a rider or attachment, is an agreement by the insurer to modify a basic policy.

Accepted Answer

A) True 
 B)False

Question 8

Medical payments pay for the treatment of injuries without the need to determine fault.

Accepted Answer

A) True 
 B)False

Question 9

A homeowner's insurance policy will NOT protect against which of the following?

Accepted Answer

A)  Public liability directly connected with the insured property. 
B)  Damage to household goods contained in the insured premises. 
C)  Flood damage to the insured premises. 
D)  Theft of personal property. 
A)  Public liability directly connected with the insured property. 
B)  Damage to household goods contained in the insured premises. 
C)  Flood damage to the insured premises. 
D)  Theft of personal property.

Question 10

If one rents rather than owns, they would choose the ____________________ form (HO-4).

Accepted Answer

The answer of If one rents rather than owns, they...

Question 11

Medical payments provided under a homeowner policy can be paid to

Accepted Answer

A)  the named insured and family members. 
B)  guests of the insured on the premises. 
C)  claims arising from business pursuits. 
D)  none of the above. 
A)  the named insured and family members. 
B)  guests of the insured on the premises. 
C)  claims arising from business pursuits. 
D)  none of the above.

Question 12

Choose the one most appropriate answer for each.
-the new price minus accumulated depreciation and is, in effect, "old for old"

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

An agreement by the insurer to modify a basic policy, also called a rider or attachment, is known as a(n)____________________.

Accepted Answer

The answer of An agreement by the insurer to modify...

Question 14

Choose the one most appropriate answer for each.
-condominium owner's policy form

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

The inflation guard endorsements are available and automatically increase property damage coverage by

Accepted Answer

A)  1.5% 
B)  2% 
C)  2.5% 
D)  all of the above. 
A)  1.5% 
B)  2% 
C)  2.5% 
D)  all of the above.

Question 16

Choose the one most appropriate answer for each.
-insurance phrase for policies that cover a large number of named perils

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

Coverage for additional perils can be obtained by

Accepted Answer

A)  purchasing a separate policy. 
B)  adding an endorsement to a regular fire insurance policy. 
C)  both a and b. 
D)  neither a nor b. 
A)  purchasing a separate policy. 
B)  adding an endorsement to a regular fire insurance policy. 
C)  both a and b. 
D)  neither a nor b.

Question 18

Section II of a homeowner insurance policy provides liability protection for the named insured but not the members of the named insured's family who lives with the insured.

Accepted Answer

A) True 
 B)False

Question 19

A homeowner policy would typically cover the house and garage but not other structures on the property such as a guesthouse or garden shed.

Accepted Answer

A) True 
 B)False

Question 20

Choose the one most appropriate answer for each.
-also called hazards or risks

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

If the insured wishes to cancel his New York fire form policy,

The money paid for insurance is called the insurance

Generally, a property owner is liable when there exists a legal duty to exercise reasonable care and the property owner fails to do so.

The financial responsibility which one has to others as a result of one's actions or negligence is known as

The New York fire insurance form does not provide coverage for losses

Choose the one most appropriate answer for each. -pays current cost of replacement less depreciation

An endorsement, also called a rider or attachment, is an agreement by the insurer to modify a basic policy.

Medical payments pay for the treatment of injuries without the need to determine fault.

A homeowner's insurance policy will NOT protect against which of the following?

If one rents rather than owns, they would choose the ____________________ form (HO-4).

Medical payments provided under a homeowner policy can be paid to

Choose the one most appropriate answer for each. -the new price minus accumulated depreciation and is, in effect, "old for old"

An agreement by the insurer to modify a basic policy, also called a rider or attachment, is known as a(n)____________________.

Choose the one most appropriate answer for each. -condominium owner's policy form

The inflation guard endorsements are available and automatically increase property damage coverage by

Choose the one most appropriate answer for each. -insurance phrase for policies that cover a large number of named perils

Coverage for additional perils can be obtained by

Section II of a homeowner insurance policy provides liability protection for the named insured but not the members of the named insured's family who lives with the insured.

A homeowner policy would typically cover the house and garage but not other structures on the property such as a guesthouse or garden shed.

Choose the one most appropriate answer for each. -also called hazards or risks

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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