Frank and his wife, Ellen, own a home. Also living in the house is their oldest daughter, Elaine, who returned home after finishing college 8 years ago. Their 21-year-old
daughter, Destiny, is currently at college, living in an on-campus dorm room. What m
Frank and Ellen are covered, as the named insured and spouse. Elaine is covered as a relative residing in the named insured's household. Destiny, who is temporarily residing at college, is also a covered person
What locations are included as insured locations in a homeowners policy?
An insured location includes: (1) The residence premises. This includes a one- to four-family dwelling, other structures, and grounds where the policyowner resides as shown in the declaration. (2) That part of other premises, other structures, and grounds
Nathan's home is covered for $250,000 (Coverage A) under an HO-3 policy. Which of the following losses are covered under Nathan's HO-3 policy?
a. vandalism to Nathan's home
b. damage to the inside walls and hardwood floors of Nathan's home caused by rain
a. Damage to Nathan's home done by vandals is covered under the open-perils Coverage A (as long as the house has not been vacant for more than 60 consecutive days preceding the loss)
b. Damage to the inside walls and hardwood floors caused by rain water t
Which of the following losses are covered under Sarah's HO-3 policy?
a. Sarah's guests received bodily injuries and the side of her neighbor's house received property damage when a gas grill exploded during a cookout at her
house.
b. While running a meeti
a. Assuming Sarah is legally liable for the explosion, the bodily injuries to Sarah's guests and the property damage to the side of the neighbor's house when Sarah's gas grill exploded during a cookout at her house would be covered up to the limit of Cove
Doug convinced his friend Denise to smoke marijuana, after which the couple engaged in unprotected sex. Denise later discovered that she had contracted AIDS, and she sued Doug, alleging that his delivery of a controlled substance had impaired her judgment
No, coverage does not apply. One exclusion in Doug's homeowners policy excludes coverage for liability arising out of the delivery of a controlled substance, and another excludes coverage for liability arising out of the transmission of a communicable dis
How does each of the following homeowners property coverages differ from the HO-3
property coverages?
a. HO-2
b. HO-4
c. HO-5
d. HO-6
e. HO-8
a. HO-2 differs from HO-3 in that HO-2 Coverages A and B are written on the same named-perils basis as Coverage C. HO-2 is less comprehensive and therefore a little less expensive.
b. HO-4 is often referred to as tenants homeowners insurance or renters in
What coverage does each of these commonly used endorsements add to the homeowners
policy?
a. home day-care coverage
b. increased special limits
c. earthquake
d. inflation guard
e. personal property replacement cost loss settlement
f. scheduled personal pr
a. Home day-care coverage is for persons who conduct day-care businesses in their homes either for children or older adults. The endorsement provides coverage for personal property used in the day-care business and extends Section II liability coverage to
What coverage does the National Flood Insurance Program (NFIP) provide, and how can a client obtain such coverage?
For property owners to be eligible for flood insurance, they must live in a community
that participates in the NFIP. These communities must agree to establish and enforce certain land use restrictions to minimize the community's exposure to flood losses.
What alternatives are available for obtaining property coverage for clients who fail to meet the underwriting guidelines of most insurers?
Several alternatives for coverage are available, but policies can be more limited than those written in the normal marketplace. Some companies specialize in the substandard market and write coverage for a variety of properties but at higher-than-normal pr
Describe the characteristics of title insurance.
Some characteristics of title insurance include the following:
(1) The policy provides protection only against unknown title defects that have occurred prior to the effective date of the policy but are discovered after the effective
date.
(2) The policy i
Frank and his wife, Ellen, own a home. Also living in the house is their oldest daughter, Elaine, who returned home after finishing college 8 years ago. Their 21-year-old
daughter, Destiny, is currently at college, living in an on-campus dorm room. What m
Frank and Ellen are covered, as the named insured and spouse. Elaine is covered as a relative residing in the named insured's household. Destiny, who is temporarily residing at college, is also a covered person
What locations are included as insured locations in a homeowners policy?
An insured location includes: (1) The residence premises. This includes a one- to four-family dwelling, other structures, and grounds where the policyowner resides as shown in the declaration. (2) That part of other premises, other structures, and grounds
Nathan's home is covered for $250,000 (Coverage A) under an HO-3 policy. Which of the following losses are covered under Nathan's HO-3 policy?
a. vandalism to Nathan's home
b. damage to the inside walls and hardwood floors of Nathan's home caused by rain
a. Damage to Nathan's home done by vandals is covered under the open-perils Coverage A (as long as the house has not been vacant for more than 60 consecutive days preceding the loss)
b. Damage to the inside walls and hardwood floors caused by rain water t
Which of the following losses are covered under Sarah's HO-3 policy?
a. Sarah's guests received bodily injuries and the side of her neighbor's house received property damage when a gas grill exploded during a cookout at her
house.
b. While running a meeti
a. Assuming Sarah is legally liable for the explosion, the bodily injuries to Sarah's guests and the property damage to the side of the neighbor's house when Sarah's gas grill exploded during a cookout at her house would be covered up to the limit of Cove
Doug convinced his friend Denise to smoke marijuana, after which the couple engaged in unprotected sex. Denise later discovered that she had contracted AIDS, and she sued Doug, alleging that his delivery of a controlled substance had impaired her judgment
No, coverage does not apply. One exclusion in Doug's homeowners policy excludes coverage for liability arising out of the delivery of a controlled substance, and another excludes coverage for liability arising out of the transmission of a communicable dis
How does each of the following homeowners property coverages differ from the HO-3
property coverages?
a. HO-2
b. HO-4
c. HO-5
d. HO-6
e. HO-8
a. HO-2 differs from HO-3 in that HO-2 Coverages A and B are written on the same named-perils basis as Coverage C. HO-2 is less comprehensive and therefore a little less expensive.
b. HO-4 is often referred to as tenants homeowners insurance or renters in
What coverage does each of these commonly used endorsements add to the homeowners
policy?
a. home day-care coverage
b. increased special limits
c. earthquake
d. inflation guard
e. personal property replacement cost loss settlement
f. scheduled personal pr
a. Home day-care coverage is for persons who conduct day-care businesses in their homes either for children or older adults. The endorsement provides coverage for personal property used in the day-care business and extends Section II liability coverage to
What coverage does the National Flood Insurance Program (NFIP) provide, and how can a client obtain such coverage?
For property owners to be eligible for flood insurance, they must live in a community
that participates in the NFIP. These communities must agree to establish and enforce certain land use restrictions to minimize the community's exposure to flood losses.
What alternatives are available for obtaining property coverage for clients who fail to meet the underwriting guidelines of most insurers?
Several alternatives for coverage are available, but policies can be more limited than those written in the normal marketplace. Some companies specialize in the substandard market and write coverage for a variety of properties but at higher-than-normal pr
Describe the characteristics of title insurance.
Some characteristics of title insurance include the following:
(1) The policy provides protection only against unknown title defects that have occurred prior to the effective date of the policy but are discovered after the effective
date.
(2) The policy i