PERSONAL LINES FINAL EXAM 1 QUESTIONS WITH CORRECT ANSWERS

PERSONAL LINES FINAL EXAM 1 QUESTIONS
WITH CORRECT ANSWERS



On a HO ('00) policy, coverage for personal property applies:
cv cv cv cv cv cv cv cv cv




A) On premises only
cv cv cv




B) Within the U.S Only
cv cv cv cv cv




C) In North America Only
cv cv cv cv




D) Anywhere in the world - ans-D) Anywhere in the world
cv cv cv cv cv cvcv cv cv cv cv




On a Property policy, the exclusion on earth movement excludes all EXCEPT:
cv cv cv cv cv cv cv cv cv cv cv




A) Earthquake
cv




B) Explosion
cv




C) Landslide
cv




D) Mud flow - ans-B) Explosion
cv cv cv cvcv cv




On a HO-3 ('00), rain damage to contents is covered:
cv cv cv cv cv cv cv cv cv




A) Never, since contents coverage is named peril
cv cv cv cv cv cv cv




B) Always, since rain damage is coverage peril
cv cv cv cv cv cv cv




C) Always, since the HO-3 is all-risk
cv cv cv cv cv cv




D) If the wind damages the dwelling allowing the rain to enter - ans-
cv cv cv cv cv cv cv cv cv cv cv cv cvcv




D) If the wind damages the dwelling allowing the rain to enter
cv cv cv cv cv cv cv cv cv cv cv




All are true about an HO-4 ('00) policy EXCEPT:
cv cv cv cv cv cv cv cv




A) It is often sold to those who rent apartments
cv cv cv cv cv cv cv cv cv




B) It is also known as "contents broad form" coverage
cv cv cv cv cv cv cv cv cv




C) It does not cover theft of personal liability
cv cv cv cv cv cv cv cv




D) It covers both personal property and personal liability - ans-
cv cv cv cv cv cv cv cv cv cvcv




C) It does not cover theft of personal liability
cv cv cv cv cv cv cv cv




An insured w/ a HO-
cv cv cv cv




3 ('00) policy covering his dwelling for $100,000 rents out his garage to a friend for his wood
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv




-working business. In the event the garage burns down, what is the most the policy will pay:
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv




A) Zero
cv




B) $10,000
cv




C) $10,000 plus loss of rental income
cv cv cv cv cv cv




D) $10,000 plus the value of the friend's woodworking equipment - ans-A) Zero
cv cv cv cv cv cv cv cv cv cv cvcv cv




On a DP policy, which provision applies to a loss when two or more policies are in force:
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv




A) Co-insurance
cv




B) Other insurance
cv cv




C) Liberalization
cv




D) Subrogation - ans-B) Other insurance
cv cv cvcv cv cv

, On an all-risk HO-3 ('00), which of the following is fully covered:
cv cv cv cv cv cv cv cv cv cv cv




A) Theft of your outboard motor from your boat at the marine
cv cv cv cv cv cv cv cv cv cv cv




B) Your canoe is stolen from your unattached garage
cv cv cv cv cv cv cv cv




C) Dropping and breaking your $2,500 camera
cv cv cv cv cv cv




D) Theft of your $2,500 Rolex - ans-B) Your canoe is stolen from your unattached garage
cv cv cv cv cv cv cvcv cv cv cv cv cv cv cv cv




A fire totally destroys your home. Your HO-
cv cv cv cv cv cv cv




3 ('00) policy would cover all of the following EXCEPT:
cv cv cv cv cv cv cv cv cv




A) Your $2,500 Rolex
cv cv cv




B) Your motor vehicle in the garage
cv cv cv cv cv cv




C) Your riding lawn mower in the garage
cv cv cv cv cv cv cv




D) Your antique furniture - ans-B) Your motor vehicle in the garage
cv cv cv cv cvcv cv cv cv cv cv cv




A DP-2 Broad form dwelling fire policy will cover all of the following EXCEPT:
cv cv cv cv cv cv cv cv cv cv cv cv cv




A) Replacement cost on building structures
cv cv cv cv cv




B) Theft of personal property
cv cv cv cv




C) Damage to roof caused by weight of ice, snow, or sleet
cv cv cv cv cv cv cv cv cv cv cv




D) Vandalism after 60 days unoccupancy - ans-B) Theft of personal property
cv cv cv cv cv cv cvcv cv cv cv cv




In liability policies, Supplement Payments:
cv cv cv cv




A) Are subject to the overall policy limit
cv cv cv cv cv cv cv




B) Have their own separate limits
cv cv cv cv cv




C) Are payable in addition to the policy limit
cv cv cv cv cv cv cv cv




D) Are limited to 10% of the overall policy limit - ans-
cv cv cv cv cv cv cv cv cv cv cvcv




C) Are payable in addition to the policy limit
cv cv cv cv cv cv cv cv




On a HO ('00) policy, which of the following is considered to ne a "residence employee":
cv cv cv cv cv cv cv cv cv cv cv cv cv cv cv




A) A day nurse caring for your mother
cv cv cv cv cv cv cv




B) A plumber called to fix your sink
cv cv cv cv cv cv cv




C) A household domestic doing your grocery shopping
cv cv cv cv cv cv cv




D) The neighbor boy mowing your lawn - ans-
cv cv cv cv cv cv cv cvcv




C) A household domestic doing your grocery shopping
cv cv cv cv cv cv cv




The primary difference between the various types of HO ('00) forms is the:
cv cv cv cv cv cv cv cv cv cv cv cv




A) Causes of Loss
cv cv cv




B) Liability coverage
cv cv




C) Theft coverage
cv cv




D) Deductible - ans-A) Causes of Loss
cv cv cvcv cv cv cv




The transfer of the insured's rights to the insurer after a loss is known as:
cv cv cv cv cv cv cv cv cv cv cv cv cv cv




A) Appraisal
cv cv




B) Assignment
cv




C) Subrogation
cv




D) Arbitration - ans-C) Subrogation
cv cv cvcv cv