Question 1

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 2

Which of the following statements about the additional coverages included in Section II of the homeowners policy is true?

Accepted Answer

A)  Damage to property of others is covered only if the insured is legally liable. 
B)  Damage to property arising out of a business engaged in by the insured is covered. 
C)  Interest that accrues on a judgment after the judgment is awarded but before the judgment is paid is covered under claims expenses. 
D)  First aid expenses incurred by the insured for a bodily injury covered under the policy are not covered. 
A)  Damage to property of others is covered only if the insured is legally liable. 
B)  Damage to property arising out of a business engaged in by the insured is covered. 
C)  Interest that accrues on a judgment after the judgment is awarded but before the judgment is paid is covered under claims expenses. 
D)  First aid expenses incurred by the insured for a bodily injury covered under the policy are not covered.

Question 3

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 4

John purchased an unendorsed Homeowners 3 policy. The coverage will expire next month. Which of the following changes will lower the premium that John will pay?

Accepted Answer

A)  reducing the deductible 
B)  adding a replacement cost endorsement for personal property 
C)  switching to an HO-2 policy 
D)  adding a personal injury endorsement 
A)  reducing the deductible 
B)  adding a replacement cost endorsement for personal property 
C)  switching to an HO-2 policy 
D)  adding a personal injury endorsement

Question 5

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 6

Tom and Tammy Evans were ready to purchase a home. The home was to serve as collateral for their mortgage loan. Two insurers declined to insure the home, citing "an adverse CLUE report." Why would an insurer reject a homeowners insurance application because of an adverse CLUE report?

Accepted Answer

A)  because the previous owner had defaulted on the mortgage loan 
B)  because the home is located in an area where the zoning law had been changed 
C)  because there had been property insurance claims filed on the home's previous owner 
D)  because the home is located in an area that does not have a certified fire department 
A)  because the previous owner had defaulted on the mortgage loan 
B)  because the home is located in an area where the zoning law had been changed 
C)  because there had been property insurance claims filed on the home's previous owner 
D)  because the home is located in an area that does not have a certified fire department

Question 7

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 8

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.

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

Which of the following statements about the additional coverages included in Section II of the homeowners policy is true?

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.

John purchased an unendorsed Homeowners 3 policy. The coverage will expire next month. Which of the following changes will lower the premium that John will pay?

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

Tom and Tammy Evans were ready to purchase a home. The home was to serve as collateral for their mortgage loan. Two insurers declined to insure the home, citing "an adverse CLUE report." Why would an insurer reject a homeowners insurance application because of an adverse CLUE report?

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

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 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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Exam 23: Homeowners Insurance, Section II

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

Which of the following statements about the additional coverages included in Section II of the homeowners policy is true?

John purchased an unendorsed Homeowners 3 policy. The coverage will expire next month. Which of the following changes will lower the premium that John will pay?

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

Tom and Tammy Evans were ready to purchase a home. The home was to serve as collateral for their mortgage loan. Two insurers declined to insure the home, citing "an adverse CLUE report." Why would an insurer reject a homeowners insurance application because of an adverse CLUE report?

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

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 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

Filters