Chapter 6A Flashcards
Endorsements (20 cards)
If your client has a very expensive rifle used for hunting, what endorsement would you use?
Personal articles endorsement, NOT firearms
A Personal Articles Endorsement is necessary if clients have personal articles that have values exceeding applicable special limits or in categories with high deductibles
True
Under the All Risks Personal Articles Endorsement, which of the following losses would NOT be covered in full?
A) A golf club is damaged during a round of golf
B) A collectible coin worth $500 is damaged
C) Camera equipment is stolen by your tenant’s son
D) Your client’s grand piano suffered a large scratch in its wood finish after a tree branch falls though the insured’s roof and onto the piano
B, Stamps & coin collections insured on a blanket basis is covered for up to $250 only
True or false:
If the insured chooses optional valued coverage for personal articles, they must get the items appraised regularly
False, they’d only need to do that if the item was especially valuable
True or false:
The Personal Articles Endorsement insures items that are for personal use only. This endorsement will not insure items that are used for professional use.
False actually. You can insure items used for “professional” purposes (i.e. instruments played at concerts or cameras used by a freelance photographer) if you provide details to the insurer & pay an additional premium
True or False:
The reinstatement clause for Personal Articles requires that the insured notify the insurer w/ in 30 days of replacing a scheduled item
True
Regarding Personal Articles insurance, what would require an up-to-date valuation before the insurer will offer coverage?
Jewelry & furs, along with anything exceeding $2k
Regarding Personal Articles insurance, which of the following situations would a broker usually be able to bind insurance?
A) The insured wants to insure a Rolex watch valued at $11,000
B) The insured wants to insure a few different high value hand bags collectively valued at $50,000
C) They want to insure a fur coat they inherited from their grandmother valued at $5000
D) The insured has over $100,000 high value items they want to insure
C, Jewelry and furs under $10k are usually bindable
When it comes to the Fine Arts endorsement, which of the following losses would not be covered?
A) A tapestry hanging above the fireplace is damaged by smoke
B) A painting stolen from a vehicle that was left unlocked by the insured
C) A marble sculpture is damaged by an earthquake
D) A bronze is damaged in a landslide
D, you’d expect A but smoke damage is included
Under Section A of the Fine Arts endorsement, there is coverage for property at another location. What is the limit of insurance available for losses that occur while the property is at another location?
10%
True or false:
Under the Fine Arts Endorsement, you have no coverage for fine art being transported.
False
True or false:
Under the Fine Arts Endorsement, you have no coverage while the property is being displayed at a gallery.
False. There is an exclusion for fairs & expos, but not galleries or art showings
Under the Fine Arts Endorsement, newly acquired items are covered for up to 30 days. What limit of insurance do you get?
25%
The insured is on his way to his vacation home and decided to use this opportunity to move some paintings up there. He packs up his Picasso, loads it into the back of his SUV strapping it down securely. While it’s being transported, the painting is damaged. Would this loss be covered?
Not covered. He does have coverage while it’s in transit BUT any packing/unpacking of the artwork must be done by a competent packer.
If the insured purchases identity theft/identity fraud coverage, which of the following expenses would the insurer not pay for?
A) Legal fees
B) Fees related to correcting credit reports
C) Paperwork fees related to getting new identification
D) All of the following are examples of covered expenses
D. Any fees caused by the identity fraud are covered
Under the Watercraft Boat & Motor Floater, your liability insurance rates are based on…
Motor horsepower
Your client purchased a Named Perils Watercraft policy. While boating around she hits a deadhead denting the bottom of the boat. Its estimated that it would cost $3000 to fix. How much in indemnity would the insured be entitled to?
$0. The Named Perils option does not insure against any damage occuring on the water.
Most watercraft are insured on an Actual Cash Value basis, but Replacement Cost is available if the boat is newer than…
10 years
In which of these situations would you recommend a Personal Computer endorsement to a client?
A) When they have expensive hardware that exceed the special limits on their homeowner policy
B) When they have expensive software that exceed the special limits on their homeowner policy
C) When they have hardware that they use occasionally for business purposes
D) When they have software on their computer that they regularly use for business purposes
B
Which of the following losses would be excluded under the homeowners form but insured under the Overland or Extended Water Endorsement?
A) Flood
B) Surface Water
C) Sewer Back-up
D) All of the above are covered
D
