SECTION 6- PERSONAL LINES INSURANCE EXAM

PDF Download

SECTION 6- PERSONAL LINES INSURANCE EXAM

QUESTIONS

Qs and Ans - Expert- Explanation - ing score -85 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Which of the following person is not an insured under Section 1 of a Homeowners Policy?

Answer:

The named insured's non-resident spouse.

Question 2: What is one way in which HO2, HO4, and HO6 similar?

Answer:

Perils insured against under coverage C.Question 3: The watercraft endorsement on a Homeowners Policy extends coverage for:

Answer:

Liability coverage for all watercraft listed on the schedule.Question 4: The ordinance or law limitation in a Homeowners Policy may cause a gap in coverage in which of the following situations?

Answer:

The insured's home is damaged by fire and must be rebuilt to meet present building codes. The additional cost of complying with the codes is 50%.

Question 5: Which is an additional benefit that is included in a DP2 that is not included in a DP1?

Answer:

Lawns, Trees, and Shrubs.Question 6: Ordinance or law coverage provides protection for which of the following losses?

Answer:

The increased expense incurred for the insurer to repair or rebuild property according to building code specifications.Question 7: Section I of a Homeowners Policy provides coverage for all of the following

individuals, EXCEPT:

Answer:

The spouse of the insured. (not living in the same residence).Question 8: How much coverage, if any, is available under HO3 for landlord's furnishings?

Answer:

$2,500.

Question 9: What is one reason a person may purchase a Dwelling Policy instead of a Homeowners Policy?

Answer:

The owner does not reside in the dwelling.Question 10: All Homeowners' policies describe the duties of the insured following a loss.Identify which of the following is not a duty of the insured following a loss.

Answer:

Prepare an inventory of the property that was damaged, include a description of the property, the quantity, the amount of the loss, and the cash value.Question 11: If the limits of liability on a structure are $75,000, and the structure is worth $125,000, how much would be owed on a fire loss of $50,000 if the policy has an 80% coinsurance requirement (disregard any deductibles)?

Answer:

$37,500

Question 12: Which of the following loss exposures is not covered by Section II of Ron's Homeowners Policy?

Answer:

Ron's registered/licensed personal auto while used on his own property which includes 10 acres of undeveloped land.Question 13: Damages caused by burglary of personal property are not covered under which dwelling form (except by endorsement)?

Answer:

Basic form.Question 14: Your HO3 insured wants to make sure he has liability protection against claims for

false arrest, libel, and slander, You should:

Answer:

Tell him he should add the personal injury endorsement.

Question 15: How are HO3 and HO5 similar?

Answer:

Both provide open peril coverage for the dwelling.Question 16: The Dwelling Policy form that offers the broadest type of coverage is which of the following?

Answer:

Special.Question 17: Under a standard ISO, Homeowners Ho3, real and personal property are covered

for the perils of:

Answer:

"All risks" coverage applies to real property. Broad form named perils coverage applies only to personal property.Question 18: What is primary medical payments coverage difference between a Boat Owners Policy and an HO3 policy?

Answer:

The boat owners policy covers injuries to the people on the boat, and the HO3 covers injuries to others outside the home.

Question 19: Which is a valid reason for an applicant to purchase an HO3 policy instead of a Dwelling Policy?

Answer:

The insured desires broader coverage.Question 20: Under a building and personal property coverage form, if the insured building has been vacant for more than 60 consecutive days, what effect will this have on a vandalism loss?

Answer:

The loss is excluded.Question 21: The ordinance and law exclusion found in property policies, such as the commercial property coverage and the Homeowner's Policy, have the following effect:

Answer:

It excludes the part of the loss resulting from the enforcement of a building ordinance or law.Question 22: Grace has a Homeowners Policy that includes Section I coverages 'A, B, and C'.

These coverages , 'A, B, and C', provide coverage for:

Answer:

Dwelling, other structures, and personal property.Question 23: A Homeowners Policy includes a "scheduled personal property endorsement" provides coverage for which of the following?

Answer:

Jewelry, furs, musical instruments, and cameras for dollar value amount decided by the insurer.

Question 24: What is the primary difference between an HO2 and HO3 policy?

Answer:

The property covered.Question 25: Coverage under a comprehensive Personal Liability Policy or a Homeowners

Section II extends:

Answer:

To the premises described and to the personal activities of the insured on or off of the premises.