1. Which of the following statements is (are) true regarding renters insurance?
I. Renters insurance is needed if you rent a house, but not needed if you rent an apartment.
II. The ISO renter's policy provides "all-risks" coverage on the insured's persona
neither I or II
2. Which homeowners policy is designed for the tenants of rented premises?
(a) Homeowners 2
(b) Homeowners 4
(c) Homeowners 6
(d) Homeowners 8
Homeowners 4
3. Which of the following statements about the Homeowners 3 policy is (are) true?
I. Losses to the dwelling are always settled on an actual cash value basis.
II. Coverage on pers. prop. limited to $5000.
neither I or II
4. Insureds under Section I of the Homeowners 3 policy include which of the following?
I. A spouse of the named insured if living in the same household
II. The named insured's children who are under age 24 and who are temporarily away at college
both I and II
5. Section I of the Homeowners 3 policy provides coverage for all of the following EXCEPT
(a) loss of use.
(b) personal property.
(c) other structures.
(d) medical payments.
(d) medical payments.
6. All of the following are covered under the dwelling coverage (A) of the Homeowners 3 policy EXCEPT
(a) any structure attached to the dwelling.
(b) the land on which the insured dwelling is located.
(c) materials and supplies intended for alteration or
b) the land on which the insured dwelling is located.
7. Which of the following statements about the coverage for other structures (Coverage B) under the Homeowners 3 policy is true?
(a) The amount of insurance on other structures is equal to a percent of the coverage on the dwelling.
(b) Structures attached
(a) The amount of insurance on other structures is equal to a percent of the coverage on the dwelling.
8. The Homeowners 3 policy limits the coverage provided on certain personal property (e.g. coins and silverware). This personal property can be adequately insured by
(a) lowering the deductible which applies to personal property losses.
(b) storing the pr
(c) adding a schedule to the policy listing the property with specific amounts of insurance.
9. Which of the following property is covered under the personal property coverage (Coverage C) of the Homeowners 3 policy?
(a) a pet iguana owned by the insured
(b) a bicycle owned by a foster child living with the named insured
(c) music CDs located in
(b) a bicycle owned by a foster child living with the named insured
10. All of the following statements about the coverage for loss of use (Cov. D) under an HO-3 policy are true EXCEPT
(a) If a covered loss makes the home unfit for living, the insurer pays additional living expenses the insured may incur as a result of th
(b) Duration of payments for additional living expenses is limited to maximum of 15 days.
11. All of the following are additional coverages under Section I of the Homeowners 3 policy EXCEPT
(a) the reasonable expenses of removing debris of covered property after an insured loss.
(b) fire dept. service charges for which the insured is liable by
(c) windstorm damage to trees and shrubs.
12. All of the following are covered perils under the personal property coverage (Coverage C) of an unendorsed Homeowners 3 policy EXCEPT
(a) earthquake.
(b) theft.
(c) windstorm.
(d) explosion.
(a) earthquake.
13. All of the following are general exclusions under Section I of the Homeowners 3 policy EXCEPT
(a) losses due to earthquake.
(b) losses due to the failure of insured to use all reasonable means to save & preserve property after a loss.
(c) losses resul
(c) losses resulting from a power failure caused by an insured peril on the residence premises.
14. Which of the following statements about the appraisal clause in the Homeowners 3 policy is true?
(a) The appraiser for each party is selected by a judge.
(b) A binding settlement can be reached only if the umpire agrees with both appraisers.
(c) Both
(d) Appraisal expenses are shared by the insured and the insurer.
15. Under the Homeowners 3 policy, all of the following are options of the insurer for settling claims EXCEPT
(a) paying the claim in cash.
(b) replacing the property.
(c) repairing the property.
(d) paying the claim with insurance company stock
(d) paying the claim with insurance company stock
16. All of the following statements about conditions in a policy are true EXCEPT
(a) If an insurer broadens coverage without an additional premium during the policy period, the broadened coverage applies immediately to the present policy.
(b) A waiver or
(d) If the named insured dies, coverage automatically ceases with respect to any property of the deceased.
17. Which homeowners policy is specially designed to insure renters?
(a) HO-2
(b) HO-3
(c) HO-4
(d) HO-6
(c) HO-4