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INSURANCE FINAL EXAM COMPLETE STUDY QUESTIONS AND VERIFIED ANSWERS (GUARANTEED PASS) | RATED A+
A client contracted for a house to be built on a plot of land that cost him $100,000. The builder
completed the house for $250,000. The client has contacted an insurance agent about obtaining
an HO-03 homeowners insurance policy that will insure the house for its replacement cost. The
policy will have an 80% coinsurance provision and a $2,000 deductible. How much insurance
does the client need to buy to cover the full replacement cost of the house in the event of a total
loss by fire?
A)$200,000.
B)$250,000.
C)$280,000.
D)$350,000. - Answer>>>B
Which of the following likely has the highest credit score?
A)Forrest has five credit cards, credit utilization of 40%, and a perfect payment history for five
years.
B)George has three credit cards, credit utilization of 29%, an installment loan, a mortgage, and a
perfect payment history for three years.
C)Connor has two credit cards totaling a $50,000 limit.
D)Floyd has a 30-year mortgage in the 10th year with a perfect payment history and the
mortgage is his only debt. - Answer>>>B
Which of the following losses would be covered by a HO-3 policy?
A)As a result of the overflow of a nearby lake, water enters the insured's basement and does
$900 damage to floor coverings and the foundation.
B)During a severe rainstorm, water enters through the wall of the basement and damages stored
items worth $450.
C)The insured, while having a party with many people present, discovers that excessive use of
the sanitary facilities has resulted in the backup of water through the sewer, causing more than
$2,250 in damage.
D)While filling the bathtub, the insured's daughter answers the telephone, chats for some 20
minutes, and then discovers that the tub overflowed. The excess water seeps through the
bathroom floor, and its weight causes the kitchen ceiling to collapse. Damages exceed $3,500. -
Answer>>>D
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