Question 1

All of the following are exclusions in the homeowners policy that apply to medical payments to others (Coverage F) EXCEPT

Accepted Answer

A)  bodily injury resulting from nuclear radiation. 
B)  bodily injury to persons who are social guests at the insured location. 
C)  bodily injury to persons eligible to receive workers compensation benefits. 
D)  bodily injury to residents of the household who are in the care of an insured. 
A)  bodily injury resulting from nuclear radiation. 
B)  bodily injury to persons who are social guests at the insured location. 
C)  bodily injury to persons eligible to receive workers compensation benefits. 
D)  bodily injury to residents of the household who are in the care of an insured.

Question 2

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 3

Which of the following statements about the coverage for medical payments to others (Coverage F) under the homeowners policy is true?

Accepted Answer

A)  Medical payments may be made for any resident of the named insured's household. 
B)  Medical expenses incurred within 3 years of an accident are covered. 
C)  Medical payments are made only if the insured is not legally liable. 
D)  Covered medical expenses are limited to emergency room charges. 
A)  Medical payments may be made for any resident of the named insured's household. 
B)  Medical expenses incurred within 3 years of an accident are covered. 
C)  Medical payments are made only if the insured is not legally liable. 
D)  Covered medical expenses are limited to emergency room charges.

Question 4

Which of the following statements is (are) true concerning the use of an individual's credit history as an insurance rating factor?
I.Individuals with poor credit histories, as a group, generally file fewer homeowners claims than do individuals with good credit histories.
II.A poor credit history can be improved over time, allowing for the purchase of homeowners insurance at a lower premium.

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 5

Which of the following statements about buying homeowners insurance is true?

Accepted Answer

A)  There is no reason to carry insurance for more than 80 percent of a dwelling's replacement cost. 
B)  The deduction for depreciation will be increased if a personal property replacement cost endorsement is purchased. 
C)  Premiums often can be reduced substantially by selecting a higher deductible. 
D)  There is little reason to compare cost since the lack of competition results in little price variation among companies. 
A)  There is no reason to carry insurance for more than 80 percent of a dwelling's replacement cost. 
B)  The deduction for depreciation will be increased if a personal property replacement cost endorsement is purchased. 
C)  Premiums often can be reduced substantially by selecting a higher deductible. 
D)  There is little reason to compare cost since the lack of competition results in little price variation among companies.

Question 6

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 7

Which statement regarding Section II of an unendoresed homeowners 3 policy is true?

Accepted Answer

A)  Liability arising from intentional property damage caused by the insured's teenager is covered. 
B)  Liability arising out of a home business is not covered. 
C)  Medical expenses for the insured's injured child are covered. 
D)  First-aid expenses for injuries suffered by guest at the home are not covered. 
A)  Liability arising from intentional property damage caused by the insured's teenager is covered. 
B)  Liability arising out of a home business is not covered. 
C)  Medical expenses for the insured's injured child are covered. 
D)  First-aid expenses for injuries suffered by guest at the home are not covered.

Question 8

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 9

Which of the following statements about endorsements to the homeowners policy is (are) true?
I.The purpose of the inflation guard endorsement is to help prevent home owners from being under-insured.
II.The purpose of the watercraft endorsement is to provide coverage for watercraft when they are used outside the United States.

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 10

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 11

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 12

Which of the following statements about the personal property replacement cost endorsement used with the homeowners policy is (are) true?
I.The damaged or destroyed property must be repaired or replaced, no matter the size of the loss.
II.It is designed primarily for antiques and fine art.

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 13

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 14

Which of the following statements is true regarding the Homeowners 3 policy and identity theft?

Accepted Answer

A)  Identity theft is covered under Coverage D-Loss of Use. 
B)  Identity theft is covered under Coverage C-Personal Property. 
C)  Identity theft is covered under Coverage E-Personal Liability. 
D)  Identity theft is covered by adding an endorsement. 
A)  Identity theft is covered under Coverage D-Loss of Use. 
B)  Identity theft is covered under Coverage C-Personal Property. 
C)  Identity theft is covered under Coverage E-Personal Liability. 
D)  Identity theft is covered by adding an endorsement.

Question 15

Section II of the homeowners policy has exclusions applying to all of the following EXCEPT

Accepted Answer

A)  activities of the named insured's minor children. 
B)  business activities. 
C)  transmission of a communicable disease. 
D)  intentional injuries. 
A)  activities of the named insured's minor children. 
B)  business activities. 
C)  transmission of a communicable disease. 
D)  intentional injuries.

Question 16

Which of the following statements regarding Section II coverage under the Homeowners 3 policy is true?

Accepted Answer

A)  Medical payments to others are covered regardless of whether the insured is legally liable. 
B)  Legal defense costs incurred by the insurer to defend the insured reduce the per-occurrence limit of liability available. 
C)  The insurer is not required to defend the insured against a groundless, false, or fraudulent lawsuit. 
D)  Any amount paid under medical payments coverage reduces the personal liability limit available for the same claim. 
A)  Medical payments to others are covered regardless of whether the insured is legally liable. 
B)  Legal defense costs incurred by the insurer to defend the insured reduce the per-occurrence limit of liability available. 
C)  The insurer is not required to defend the insured against a groundless, false, or fraudulent lawsuit. 
D)  Any amount paid under medical payments coverage reduces the personal liability limit available for the same claim.

Question 17

Liability arising out of which of the following is covered under the personal injury endorsement to the homeowners policy?

Accepted Answer

A)  property damage liability 
B)  false arrest 
C)  bodily injury 
D)  business liability 
A)  property damage liability 
B)  false arrest 
C)  bodily injury 
D)  business liability

Question 18

All of the following are considered insured locations for medical payments to others (Coverage F) under a homeowners policy EXCEPT

Accepted Answer

A)  a new vacation home purchased by an insured during the policy period. 
B)  a motel room where an insured is temporarily residing. 
C)  a hall rented by the insured for her daughter's graduation party. 
D)  farmland owned by the insured. 
A)  a new vacation home purchased by an insured during the policy period. 
B)  a motel room where an insured is temporarily residing. 
C)  a hall rented by the insured for her daughter's graduation party. 
D)  farmland owned by the insured.

Question 19

Liability arising out of which of the following is covered under Coverage E of an unendorsed Homeowners 3 policy?

Accepted Answer

A)  use of the insured's auto on a public road 
B)  use of the insured's golf cart at a golf course 
C)  use of the insured's motorcycle on a highway 
D)  use of the insured's 40-foot boat with a 200 horsepower engine 
A)  use of the insured's auto on a public road 
B)  use of the insured's golf cart at a golf course 
C)  use of the insured's motorcycle on a highway 
D)  use of the insured's 40-foot boat with a 200 horsepower engine

Question 20

Which of the following statements about the insurer's obligation to provide a legal defense under the personal liability coverage (Coverage E) of the homeowners policy is (are) true?
I. The insurer agrees to defend the insured only if the suit is not groundless, false, or fraudulent.
II. The insurer's obligation to defend the insured ceases after the amount paid for damages from an occurrence equals the policy limit.

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

Exam 23: Homeowners Insurance, Section II

All of the following are exclusions in the homeowners policy that apply to medical payments to others (Coverage F) EXCEPT

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 statements about the coverage for medical payments to others (Coverage F) under the homeowners policy is true?

Which of the following statements about buying homeowners insurance is true?

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

Which statement regarding Section II of an unendoresed homeowners 3 policy is true?

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

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

Which of the following statements about the personal property replacement cost endorsement used with the homeowners policy is (are) true? I.The damaged or destroyed property must be repaired or replaced, no matter the size of the loss. II.It is designed primarily for antiques and fine art.

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 is true regarding the Homeowners 3 policy and identity theft?

Section II of the homeowners policy has exclusions applying to all of the following EXCEPT

Which of the following statements regarding Section II coverage under the Homeowners 3 policy is true?

Liability arising out of which of the following is covered under the personal injury endorsement to the homeowners policy?

All of the following are considered insured locations for medical payments to others (Coverage F) under a homeowners policy EXCEPT

Liability arising out of which of the following is covered under Coverage E of an unendorsed Homeowners 3 policy?

Risk and Its Treatment

Insurance and Risk

Introduction to Risk Management

Enterprise Risk Management and Related Topics

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 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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