Which of the following statements about the Personal Jewelry Floater is correct?
a. The Pair and Sets Clause does not apply
b. Coverage is written on a replacement cost basis
c. Automatic coverage for newly acquired items is only provided for 30 days
d. A
c. Automatic coverage for newly acquired items is only provided for 30 days
Which of the following types of property are covered by the Personal Effects Floater?
a. Paintings, etchings, and pictures
b. Personal property carried by travelers
c. Golfer's equipment
d. Coin collections
b. Personal property carried by travelers
Section I of the Boatowners policy provides what type of coverage for the hull?
a. Actual cash value
b. Replacement cost
c. Stated value
d. Open perils
d. Open perils
Which of the following is correct about Difference in Conditions (DIC) Insurance?
a. Flood is a peril that can be covered by this policy
b. It is written on a standard form similar to the property form
c. Fire and lightning are typical covered perils
d. T
a. Flood is a peril that can be covered by this policy
In order to be considered a single occurrence, the Earthquake endorsement covers all earth movement that occurs within what time period?
a. 12 Hours
b. 36 Hours
c. 48 Hours
d. 72 Hours
d. 72 Hours
The National Flood Insurance Program (NFIP) sells flood insurance in which of the following types of communities?
a. Communities that border a large body of water
b. Participating communities
c. Farm communities
d. Communities with a population less than
b. Participating communities
A single-family dwelling may purchase up to what amount of flood insurance in the NFIP's Emergency program?
a. $35,000
b. $50,000
c. $100,000
d. $250,000
a. $35,000
Which of the following is not eligible for coverage under a Fair Access to Insurance Requirements program?
a. Homeowner
b. Rental dwelling
c. Farm property
d. Uninsured dwelling property
c. Farm property
All of the following are true regarding the Personal Umbrella Policy, except:
a. The Umbrella acts as a contributory liability policy
b. The policy requires underlying coverage for automobiles and homes
c. The Umbrella can provide broader coverage than th
a. The Umbrella acts as a contributory liability policy
Which of the following perils is covered under the Personal Umbrella?
a. Aircraft
b. Personal injury
c. Bailee
d. Intentional injury
b. Personal injury
The self-insured retention in the Umbrella policy is described as which of the following?
a. Excess coverage
b. An Endorsement
c. A method of cost-sharing
d. Primary coverage
c. A method of cost-sharing
All of the following are true of a Yacht Policy, except:
a. A yacht is covered regardless of its location
b. Is written on an Ocean Marine form
c. Lay up warranties are permitted
d. Includes both property and liability coverage
a. A yacht is covered regardless of its location
When an insured's boat is in storage, which warranty allows for a return on premium?
a. Houseboat
b. Storage
c. Lay Up
d. Dry Dock
c. Lay Up
Which statement is true about Crop/Hail Insurance?
a. It is reinsured by federal government
b. It only covers the peril of hail
c. It covers only one growing season
d. It is not subject to any deductible
c. It covers only one growing season
Mobile Home Insurance includes all of the following, except:
a. Coverage A Dwelling coverage
b. Property Removal up to $500
c. Coverage B with a limit of 10% of Coverage A
d. Coverage C with a limit of 50% of Coverage A
d. Coverage C with a limit of 50% of Coverage A
Which of the following statements about the National Flood Insurance Program is false?
a. Mudflow is covered; mudslide is not covered
b. Two deductibles apply separately to the building and contents
c. Property removed to protect it from flood is covered
d. Coverage becomes effective after a 24-hour waiting period
When an underlying policy doesn't cover a particular loss, the umbrella will drop down and cover the entire loss, after payment by the insured of a:
a. Premium
b. Copayment
c. Retention
d. Commission
c. Retention
All of the following are true of the Fine Arts Floater, except:
a. Coverage is written on a replacement cost basis
b. Coverage applies only to scheduled items
c. It covers such items as paintings, rare manuscripts and antiques
d. It has a 90-day automatic
a. Coverage is written on a replacement cost basis
All of the following are true of an Umbrella Liability Policy, except:
a. Coverage is worldwide
b. Specific minimum limits for underlying coverage are required
c. Coverage is excess over the underlying policy
d. Damage to property in the care and custody
d. Damage to property in the care and custody of the insured is covered
Which statement is false regarding the National Flood Insurance Program (NFIP)?
a. The Regular Program allows coverage on a single family dwelling up to $250,000
b. It provides coverage for direct and indirect loss to covered property as the result of flo
b. It provides coverage for direct and indirect loss to covered property as the result of flooding
Some flood policies are written in the voluntary property market as a result of which program?
a. Standard
b. Emergency
c. National Flood Cooperative
d. Write Your Own
d. Write Your Own
All of the following are true of the Personal Articles Floater, except:
a. It is used to insure individual personal property
b. It is written on an itemized or scheduled basis
c. It insures against open perils
d. Claims are settled on a replacement cost b
d. Claims are settled on a replacement cost basis
An insurance agent would recommend which of the following floaters to his client who is traveling to Europe for a month's vacation?
a. Scheduled personal property floater
b. Personal effects floater
c. Personal articles floater
d. Camera floater
b. Personal effects floater
How is Mobile Home insurance written?
a. By writing a separate Mobile Homeowners Policy only
b. By adding a Mobile Home Endorsement to a Homeowners Policy only
c. Either by writing a separate Mobile Homeowners Policy or by adding an endorsement to a Homeo
c. Either by writing a separate Mobile Homeowners Policy or by adding an endorsement to a Homeowners Policy
Which of the following is covered by Crop Hail insurance?
a. Non-visible crops
b. Failure to harvest a mature crop
c. Non owned property (shared crop)
d. Damage caused by freezing, drought, insects and disease
d. Damage caused by freezing, drought, insects and disease
Which Statement is true regarding a Difference In Conditions Policy?
a. There is no standard form
b. There is always a coinsurance clause
c. The standard deductible is $250
d. There is a pro rata clause
a. There is no standard form
The Personal Articles Floater is similar to which of the following endorsements?
a. The Special Personal Property Endorsement
b. The Guaranteed Replacement Cost Endorsement
c. The Scheduled Personal Property Endorsement
d. The Personal Property - Replacem
c. The Scheduled Personal Property Endorsement
A flood damages a home that is in a community in early stages of participation in NFIP, but are not yet considered a participating community. What is the maximum a resident may receive for damages to personal property?
a. Coverage C on the homeowners poli
c. $10,000
The National Flood Policy defines all of the following as floods, except:
a. Leakage of underground water systems
b. Overflow of inland or tidal waters
c. Mudflow caused by accumulation of water
d. Unusual and rapid accumulation or runoff of surface water
a. Leakage of underground water systems
All of the following are true of the Personal Jewelry Floater, except:
a. It has a 60-day automatic coverage for newly acquired items
b. It has a Pair and Sets Clause
c. Appraisal is usually mandatory
d. It can be written on a valued basis
a. It has a 60-day automatic coverage for newly acquired items
If property under a Personal Floater risk is insured at a $5,000 valued basis, how much would the insured receive if the item is a total loss, the actual cash value is $4,000, and an auction is selling the same item for $3,500?
a. $3,500
b. $4,000
c. $4,0
d. $5,000
Which of the following is not true about the FAIR plan?
a. FAIR means Fair Access to Insurance Requirements
b. It provides property coverage to both residential and farm dwellings
c. It provides basic property coverage to those who have been rejected in t
b. It provides property coverage to both residential and farm dwellings
Umbrella policies provide coverage on which basis?
a. Excess
b. Aggregate
c. Primary
d. Open perils
a. Excess
Under a Mobile Home policy, if the mobile home is insured under Coverage A for $70,000, how much coverage would ordinarily apply to personal property under Coverage C?
a. $35,000
b. $42,000
c. $30,000
d. $28,000
d. $28,000
A Mobile Home Insurance Policy is most similar to:
a. A Travel Trailer policy
b. An Auto policy
c. A Homeowners Policy
d. A Tenants policy
c. A Homeowners Policy
Fine arts and antiques are classes of property insured on a:
a. Market value basis
b. Valued basis
c. Actual cash basis
d. Replacement cost basis
b. Valued basis
All of the following types of property may be covered by a Personal Articles Floater, except:
a. Stamps
b. Buildings
c. Jewelry
d. Golf equipment
b. Buildings
The intent of insuring under the Personal Effects Floater is:
a. To insure hard-to-value property like fine art or heirlooms
b. To provide coverage for property kept at the home
c. To provide coverage worldwide for travelers
d. To insure personal property
c. To provide coverage worldwide for travelers
What coverage is not included under the Yacht policy?
a. Personal Injury Coverage
b. Protection and Indemnity
c. Personal Property coverage
d. Towing
a. Personal Injury Coverage
The Personal Articles Floater is used to do which of the following?
a. Provide replacement cost coverage on personal property
b. Insure individual personal property on a scheduled basis
c. Replace Coverage B of the Homeowners Policy
d. Insure personal pro
b. Insure individual personal property on a scheduled basis
All of the following statements regarding flood insurance are true, except:
a. Communities in the earliest stage of participation in the NFIP are in the Emergency Program
b. The policy applies a deductible only to loss of contents
c. Coverage is available
b. The policy applies a deductible only to loss of contents
What coverage is not included under the Boatowners Policy?
a. Hull
b. Property Coverage
c. Medical Payments
d. Personal Property Coverage
d. Personal Property Coverage
Which statement is false regarding the National Flood Insurance Program (NFIP)?
a. It provides coverage for direct and indirect loss to covered property as the result of flooding
b. Coverage includes the increased cost of compliance with flood plain manag
a. It provides coverage for direct and indirect loss to covered property as the result of flooding