Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

LICENSING EXAM - Property and Casualty > chapter five - homeowners policy > Flashcards

chapter five - homeowners policy Flashcards

1
Q

What is Section I?

A

Property Coverages

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is Section II?

A

Liability Coverages.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Owner-occupied dwelling with no more than 4 residential units; the named insured must live in one of the units.

A

HO-2, HO-3, HO-5, and HO-8

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The residence or apartment is rented, not owned. What form is this?

A

HO-4

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Condo or cooperative unit may be rented or owned. What form?

A

HO-6

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

HO-3 is what type of form?

A

Special Form.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

HO-4 is what type of form?

A

Contents Broad Form

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

HO-5 is what type of form?

A

Comprehensive Form.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

In what way is the HO–5, Comprehensive Form different from the HO–3, Special Form?

Personal property is valued at actual cash value

The dwelling is valued at replacement cost

The dwelling is insured on an open perils basis

Personal property is insured on an open perils basis

A

Personal Property is insured on an open perils basis.

The HO-5 Comprehensive Form covers personal property for open perils whereas HO-3 policy covers it for named perils

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

HO-6 is what type of form?

A

Unit-Owners Form.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

An owner of a condominium unit would purchase which Homeowner form?

A

HO-6 Unit-Owners Form

The HO-6 covers the personal property of the condominium unit owner as well as building coverage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

HO-8 is what type of form?

A

Modified form.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

A related, full-time student away at school and under what age is considered an insured on the Homeowner policy?

A

24.

(In order to qualify for coverage under the HO policy, a full-time student living away at college is an insured if under age 24.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Coverage A

A

Dwelling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

To avoid penalty at the time of a partial loss, dwelling must be insured to at least ___% of its replacement value.

A

80.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Coverage A - Dwelling does not cover vandalism and malicious mischief if the dwelling has been vacant for how many days?

A

60.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Coverage B

A

Other Structures.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Coverage B Other Structures provides a limit of liability equal to ___% of the Coverage A limit.

A

10.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Coverage C

A

Personal Property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

On Coverage C, Personal Property, if Personal Property is usually located at an insured’s residence other than the residence premises, coverage is limited to ___% of Coverage C, or $____, which is greater.

A

10% ; $1,000.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

All of the following special limits of Coverage C are correct, except:

$2,500 for business property away from premises

$200 for money

$2,500 for theft of firearms

$1,500 for a trailer not used with watercraft

A

$2,500 for business property away from premises.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Coverage C, Personal Property, provides $____ for loss of business property away from premises.

A

$500.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Coverage D

A

Loss of Use

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

The automatic limit for Coverage D - Fair Rental Value is what percentage of Coverage A under an HO-3, Special Form?

A

30%.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Section ___ , called ____ includes …

Debris removal
Reasonable Repairs
Trees, Shrubs, and Plants

A

Section I ; Additional Coverages

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Coverage up to $____ is provided for the insured’s legal responsibility because of theft or unauthorized use of credit cards, electronic fund transfer or access devices issued to an insured.

A

$500.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Coverage up to $____ is provided for the named insured’s share of loss assessment charged during the policy period by a corporation or association of property owners.

A

$1,000.

28
Q

Up to $____ coverage is provided for appliances, carpeting, and household furnishings owned by the named insured in each apartment on the residence premises that is rented to others.

A

$2,500.

29
Q

The insured may use up to ___% of the Coverage A limit of insurance for increased costs the insured incurs due to the enforcement of any ordinance or law that requires or regulates ….

A

10%

30
Q

The policy will pay up to $____ for grave markers, on or away from the residence premises, for loss caused by a peril insured under Coverage C.

A

$5,000.

31
Q

The Landlord’s Furnishings endorsement provides up to $____ of coverage.

A

2,500.

32
Q

The Water Back Up and Sump Discharge or Overflow endorsement provides up to $____ of coverage for direct physical loss to property insured under Section I.

A

$5,000.

33
Q

This endorsement is used to increase limits of liability for certain categories of personal property and to broaden the perils insured against that apply to that property.

A

Scheduled Personal Property Endorsement/

34
Q

Identity Theft Expense will up to $____ for expenses resulting from an instance of identity fraud discovered during the policy period.

A

15,000.

35
Q

Coverage F

A

Medical Payments to Others

36
Q

Medical Payments to Others will pay necessary medical expenses that are incurred or medically ascertained within ____ years from the date of an accident causing bodily injury.

A

3 years.

37
Q

Damage to Property of Others pays up to $____ , at replacement cost, for property damage to property of others caused by an insured.

A

1,000.

38
Q

The duties required of an injured person seeking coverage under Medical Payments to Others include all of the following, except:

Help the insurer in settling the claim

Submit to a physical exam by the insurer’s physician

Promptly notify the insurer of any notice or demand

Cooperate with the insurer

A

Help the insurer in settling the claim.

An injured person isn’t responsible for settling the claim

39
Q

Which of the following boats is covered under the Watercraft Liability endorsement?

A 20-foot sail boat

A watercraft rented to another person

A jet boat

A boat used to practice for a race

A

A 20-foot sail boat.

(This endorsement covers sail boat with or without power, and property damage or bodily injury arising out of the ownership, maintenance, use, loading, or unloading of the described watercraft)

40
Q

Which of the following best describes the reason to purchase an HO-8?

When insuring an older home that might create a moral hazard when insurance is written at replacement cost

When insuring homes with a replacement cost exceeding $250,000

When looking for a policy that covers the dwelling on an ACV basis

When insuring homes namely located on farms

A

When insuring an older home that might create a moral hazard when insurance is written at replacement cost.

41
Q

The HO-3 dwelling and other structures coverages are insured on which basis?

A

Open Perils

42
Q

Under Coverage A of the Homeowners Policy, all of the following are covered, except:

The dwelling on the residence premises

An attached garage

Lumber in the insured’s yard to be used to build a deck off the kitchen

The land on which the dwelling is located

A

The land on which the dwelling is located.

43
Q

Which statement about the Homeowners Policy is false?

First Aid Expenses include first aid to an insured in the event of an injury

Under Section II, coverage includes defense costs, at the insurer’s expense, even if the suit is groundless

Under Section II, coverage applies only to bodily injury or property damage that occurs during the policy period

The policy will not provide coverage for an insured that has intentionally concealed or misrepresented any material fact or circumstance

A

First Aid Expenses include first aid to an insured in the event of an injury.

(First aid expenses does not apply to the insured or resident of the household)

44
Q

The amount of insurance provided to cover personal property under Coverage C of a Homeowners Policy, is:

50% of Coverage A

20% of Coverage A

40% of Coverage A

60% of Coverage A

A

50% of Coverage A.

45
Q

If an owner-occupied home is totally destroyed without fraud by a fire, the amount of the loss is based on:

The market value

The policy limit

The replacement value

The coinsurance value

A

The policy limit.

46
Q

Choose the true statement concerning Homeowners Policies.

The HO-4 provides open peril coverage on both the dwelling and contents

Section I limits coverage on fire department service charge to $100

Section I limits coverage on utility trailers up to $500

The Section I deductible does not apply to property covered under the Scheduled Personal Property Endorsement

A

The Section I deductible does not apply to property covered under the Scheduled Personal Property Endorsement.

(The Scheduled Personal Property Endorsement has no deductible)

47
Q

Choose the false statement regarding the coverage of property under a Homeowners Policy.

Theft of silverware is covered up to $2,500

The Personal Property Replacement Cost Endorsement may be added to cover the contents on a replacement cost basis

Money is covered up to $500 per occurrence

The Scheduled Personal Property Endorsement provides open perils coverage

A

Money is covered up to $500 per occurrence.

The limit on money is $200

48
Q

Which of the following is eligible to receive medical payments under Section II of a Homeowners Policy?

The named insured’s spouse

A tenant who lives in a portion of the insured’s residence

The named insured

A residence employee

A

A residence employee.

49
Q

The Homeowners Policy provides coverage for all of the following, except:

A motorized golf car being driven on a public beach

A motorized wheelchair

A riding lawn mower pulling a two-wheel garden trailer

An ATV on the insured’s premises

A

A motorized golf car being driven on a public beach.

(In order for coverage to apply, a motorized golf car must be used on a golfing facility or within a private residential community for approved purposes)

50
Q

Which of the following is true regarding the HO-4 and HO-6 forms?

They provide open perils coverage on the personal property

They are used to insure the personal property and personal liability of the insured, but do not include the structure itself

Losses are paid on a replacement cost basis

The amount of insurance on the dwelling containing personal property is 10% of the Coverage C amount of insurance

A

They are used to insure the personal property and personal liability of the insured, but do not include the structure itself.

(the HO-4 and HO-6 forms do not have an inusrable interest in the dwelling)

51
Q

All of the following definitions are true of a Homeowners Policy, except:

Property damage is physical injury to tangible property, but does not include loss of use of that property

Bodily injury is bodily harm, sickness, or disease, including required care, loss of services, and death that results

A residence employee is an employee of an insured whose duties are related to the maintenance or use of the residence premises

An occurrence is an accident, including exposure to conditions that result during the policy period in bodily injury or property damage

A

Property damage is physical injury to tangible property, but does not include loss of use of that property.

(Coverage C covers property owned or used by the insured, including property owned by others)

52
Q

Under the Homeowners Policy, an unrelated resident in the care of the insured is covered up to what age?

16

18

21

24

A

21.

Unrelated residents, such as exchange students, are covered up to age 21

53
Q

All of the following are true of Section II of a Homeowners Policy, except:

Medical expense coverage is payable to guests

Loss assessment charges against the insured by a property owner’s association are excluded

First aid expenses are automatically included

Medical payments coverage would apply if the family dog were to bite someone 3 blocks from home

A

Loss assessment charges against the insured by a property owner’s association are excluded.

(Loss assessment charges against the insured by a property owner’s association are covered up to $1,000)

54
Q

Which property would be settled for its actual cash value even if the Personal Property Replacement Cost Loss Settlement Endorsement is attached to the HO-3 policy?

Appliances

Antiques

Outdoor equipment

Carpeting

A

Antiques.

(Property that cannot be replaced, such as souveniers, antiques, and paintings are not eligible for the replacement cost coverage)

55
Q

Which claim would be covered under Coverage E of a Homeowners Policy?

The transmission of a communicable disease by an insured

Bodily injury to a guest caused by the insured’s pet dog

Bodily injury to an insured

Bodily injury arising out of the application of corporal punishment by an insured

A

Bodily injury to a guest caused by the insured’s pet dog.

(Liability coverage does not apply to bodily injury or PD suffered by the insured. Communicable diseases and corporal punishment are excluded under the policy)

56
Q

The Homeowners policy covers all of the following losses to trees, shrubs and plants, except:

Loss due to lightning

Loss due to fire

Loss due to vehicles not owned or operated by a resident

A loss resulting from a windstorm

A

A loss resulting from a windstorm.

(Damage to plants by windstorm or the weight of ice, snow, or sleet is considered so common as to be an uninsurable peril)

57
Q

The HO-3 dwelling and other structures coverages are insured against which perils?

Broad perils

Open perils

Basic perils

Modified perils

A

Open Perils.

(Coverages A and B of the HO-3 are insured on an open perils basis in which all perils are insured unless specifically excluded)

58
Q

All of the following are considered an insured under a Homeowners Policy, except:

Persons under age 21 who are residents of the household

Any person legally responsible for animals owned by an insured

Relatives who are residents of the household

A 30-year-old friend living at the insured premises

A

A 30 year old friend living at the insured premises.

(The definition of insured includes other residents of the named insured’s household who are: 1. Relatives of the named insured, meaning they are related by blood or 2. Under the age of 21 and in the care of any insured)

59
Q

Which of the following is not true concerning Section II of the Homeowners Policy?

The coverage for Damage to Property of Others pays the replacement cost of the property damaged up to $1,000 per occurrence

The Damage to Property of Others duplicates coverage that is included in Section I

The coverage for Damage to Property of Others excludes property that is covered in Section I

Payment under Damage to Property of Others is made regardless of negligence

A

The Damage to Property of Others duplicates coverage that is included in Section I.

(The damage to Property of Others Additional Coverage supplements the Property Damage Liability Coverage by providing limited Coverage for damage, caused by the insured, regardless of negligence. Coverage does not apply to property damage covered under Section I of the policy)

60
Q

All of the following would be included in the definition of insured location, except:

A boat slip used by the named insured

A summer vacation home rented by the insured

A 5-family dwelling in which the insured lives in one of the units, including the structures and grounds

Land upon which a 4-family dwelling is being built as a residence for the named insured

A

A 5 family dwelling in which the insured lives in one of the unites, including structures and grounds.

(Eligible residential dwellings are those containing 1 to 4 residential units and no more than 2 roomers or boarders per family)

61
Q

On a Special Form Homeowners Policy, which of the following coverages is provided under the Property Removed Additional Coverage?

Named perils coverage for 30 days

Named perils coverage for 15 days

Open perils coverage for 30 days

Open perils coverage for 10 days

A

Open perils coverage for 30 days.

(This Additional Coverage will cover property that is removed in order to prevent loss when the dwelling is threatened by a Peril Insured Against. As long as the dwelling was threatened by a peril that the policy covers, removed property will be covered for loss by any peril, for no more than 30 days)

62
Q

All of the following are true of a Homeowners Policy, except:

Section II provides coverage for damage to the insured’s property

Cemetery plots, burial vaults and vacant land are insured locations

The language in Section II is the same in all Homeowners Policies

Coverage E is written on a single limit basis

A

Section II provides coverage for damage to the insured’s property.

(Coverage for the insured’s property is provided in Section I)

63
Q

All of the following are true of the HO-2, except:

The HO-2 pays for losses to the dwelling on a replacement cost basis

The HO-2 covers owner-occupied dwellings

The HO-2 pays for losses on an open peril basis

The HO-2 covers the broad form perils

A

The HO-2 pays for losses on an open peril basis.

The HO-2 pays all losses on a broad form (Named Perils) basis.

64
Q

Coverage C of a Homeowners Policy includes:

An owned camera used by the insured while on vacation in another country

The insured’s personal automobiles, while on the residence premises

Aircraft stored on the Residence Premises

The insured’s pet animals

A

An owned camera used by the insured while on vacation in another country.

(Property not covered under Coverage C includes animals, aircraft, and vehicles registered for road use. Personal Property is covered worldwide)

65
Q

Up to what amount of coverage is provided for a $1,000 shed if the insured doesn’t use an available fire extinguisher to put out a shed fire?

Nothing

$500

$900

$1,000

A

Nothing.

The Neglect Exclusion prevents coverage since the insured failed to use all reasonable means to save covered property

LICENSING EXAM - Property and Casualty (16 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions