Exam 24: Other Property and Liability Insurance Coverages

Carolyn is considering the purchase of a large (60-foot) boat. She called her insurance agent to see if she needs a separate policy for the boat. The agent said that a special category of insurance policies was designed to insure large watercraft. These policies are called

Which of the following statements about the Personal Articles Floater is (are) true? I.It is designed to cover several classes of personal property. II.Coverage is written on an "open perils" (all-risks) basis.

All of the following are considered floods under the federal flood insurance program EXCEPT

Which of the following statements about title insurance is true?

Steve and Mary are art collectors. They own lithographs, etchings, and vintage photographs valued at over $250,000. Steve and Mary display their art collection at their home. They can insure this valuable personal property through a

Tina purchased a personal umbrella policy with a $1 million limit and a $1,000 self-insured retention. Her insurer required her to carry a $300,000 liability limit under her homeowners policy. Tina was held responsible for slandering a public official. The public official won a $100,000 judgment against Tina. The insurer that wrote Tina's homeowners policy denied coverage. How much will the insurer pay under Tina's personal umbrella policy?

William would like to insure his home. He does not want theft or personal liability coverage; however, he would like "open perils" (all-risks) coverage on the dwelling. William should purchase a

Jerry built a home in a flood plain. He did not purchase flood insurance. Recently, a noted meteorologist predicted torrential rains for the area for the next 7 days. Jerry attempted to purchase flood insurance through the National Flood Insurance Program. Which flood insurance provision is likely to block Jerry's efforts to obtain coverage for protection against the predicted torrential rain?

Congressional action in 2012 extended the National Flood Insurance Program (NFIP) until 2017. Which of the following is a key provision of the Biggert-Waters Flood Insurance Reform and Modernization Act of 2012?

Which of the following statements about a typical personal umbrella policy is (are) true? I.Losses covered under an underlying policy and the umbrella policy are settled on a pro rata basis. II.Losses not covered by the basic underlying contracts are subject to a self-insured retention which typically is at least $25,000.

While the Homeowners Flood Insurance Affordability Act of 2014 rolled-back some premium increases in the Biggert-Waters Act, it included a provision to help fund the large deficit in the National Flood Insurance Program. The provision to help fund the deficit is

Martin would like to insure valuable personal property limited in coverage by his homeowners policy. Martin has two options. He can purchase the coverage through a separate personal articles floater policy or he can add an endorsement to his homeowners policy. The endorsement is called the

Which of the following statements about Dwelling Property 3 (special form) is (are) true? I.Personal property is covered only for those perils specifically named in the policy. II.The dwelling and other structures are covered on an "open perils" (all risks) basis.

Len is considering the purchase of a home. As a home is a large investment, Len wants to make sure that there are no liens, easements, or other encumbrances preventing him from an unchallenged right to possess and enjoy his property. Len can protect this right through the purchase of

Which of the following perils is covered under the Dwelling Property 2 (broad form) policy?

Andrea purchased an auto insurance policy with bodily injury liability limits of 250/500 ($250,000/$500,000). She also purchased a personal umbrella policy with a $1 million limit and a $500 self-insured retention. Andrea was talking on her cell phone while driving, and her car struck and killed a pedestrian in a crosswalk. The court ordered her to pay $750,000 to the spouse of the person she killed. How will this claim be settled?

Paul has a personal auto policy with a per-person liability limit of $300,000. He also has a personal umbrella policy with a limit of $2,000,000 and a self-insured retention of $1,000. How much will be paid by each policy if a person wins a judgment of $500,000 against Paul as a result of bodily injury arising from the auto accident?

Which of the following statements about mobile home insurance is (are) true? I.Coverage for the mobile home may be written on either a replacement cost basis or an actual cash value basis, depending on how much the mobile home has depreciated. II.An additional coverage pays, up to a specified dollar limit, for the cost of transporting the mobile home to a safe place when it is endangered by a covered peril.

Tom and Nancy Boyle were surprised to learn that some of their valuable personal property-a gun collection, jewelry, a mink coat, and sterling silverware-was subject to internal limits under their homeowners policy. What separate insurance policy can the Boyles purchase to obtain the desired coverage on this personal property?

All of the following are characteristics of inland marine floater policies EXCEPT