Personal Lines Final Exam – Questions With
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Terms in this set (100)
All are true about Medical coverage C. Covers regular residents of your household
on a HO ('00) policy EXCEPT it:
Medical coverage on a HO policy is to others, not
A. Covers expenses incurred within 3 residents of your own household. It is a no fault
years of the date of accident 'goodwill' type coverage designed to prevent
B. Covers resident employees lawsuits.
C. Covers regular residents of your
household
D. Is shown as Coverage "F" on the
Declaration page
Coverage "F" on a HO ('00) policy is: C. Medical to others
A. Personal Liability On a HO policy, Coverages A, B, C & D are Section I
B. Personal Property property coverages, Part II of the policy provides
C. Medical to others Coverage E - Personal Liability and Coverage F -
D. Theft Medical
A DP-3 ('02) Special Form dwelling B. Theft of built in appliances
policy covers which of the following:
Since the DP-3 is all-risk on the dwelling and
A. Wear and tear outbuildings, theft of built-in appliances would be
B. Theft of built in appliances covered. However, even all-risk policies have
C. Liability to others exclusions, such as wear and tear and mechanical
D. Mechanical breakdown breakdown. Further, no unendorsed DP policy covers
theft of contents or personal liability. The ('02) merely
refers to the ISO form edition date.
,Section I of a HO ('00) policy covers D. Medical to others
all EXCEPT:
Section I of a HO policy provides the property
A. Dwelling coverages, while Section II provides coverage for
B. Loss of use Personal Liability and Medical to Others.
C. Other Structures
D. Medical to others
On an HO-6 ('00), coverage for B. Broad form named perils
personal property is:
An H0-6 is designed to cover owners of
A. Basic form named perils condominiums or townhouses. The policy will cover
B. Broad form named perils the interior wall and floor coverings as well as built-in
C. Special form all risk appliances. Contents coverage is the same broad
D. Replacement cost form named peril coverage provided by an HO-3.
Only an HO-5 provides all-risk coverage for contents
and contents coverage is always actual cash value,
unless replacement cost coverage is added by
endorsement.
On a scheduled Personal Articles C. Fire
Floater (PAF), which of the following is
an insured peril: A PAF is a type of all-risk inland marine floater that
may be added to a HO by endorsement. However,
A. Inherent vice even all-risk policies contain exclusions, such as wear
B. Wear and tear and tear, inherent vice and latent defect
C. Fire
D. Latent defect
On a HO ('00) policy, coverage for D. Anywhere in the world
personal property applies:
Coverage C on all HO provides contents coverage
A. On premises only anywhere in the world, including coverage for theft
B. Within the U.S. only of personal property. The standard deductible is
C. In North America only $250 per occurrence. However, coverage for
D. Anywhere in the world contents away from home is limited to 10% of
Coverage C.
,What type of construction utilizes C. Frame
wood in the interior walls and roof:
The more fireproof a structure is, the lower the rates.
A. Fire resistant steel Frame (or wood) construction would cost more to
B. Masonry insure than would buildings constructed of block,
C. Frame masonry or fire-resistant materials (steel).
D. Block
On a Property policy, the exclusion on B. Explosion
earth movement excludes all EXCEPT:
Even the Basic DP-1 provides coverage for explosion
A. Earthquake (remember WHARVES).
B. Explosion
C. Landslide
D. Mud flow
On a HO-3 ('00), rain damage to D. If the wind damages the dwelling allowing the rain
contents is covered: to enter
A. Never, since contents coverage is Contents coverage on an all-risk HO-3 is still named
named peril peril, and rain is not one of the perils specified.
B. Always, since rain damage is a However, if wind damaged the roof, the subsequent
covered peril rain damage to contents would be covered. In other
C. Always, since the HO-3 is all risk words, wind was the 'proximate' cause of the loss.
D. If the wind damages the dwelling
allowing the rain to enter
The liability exposure that a HO policy C. Premises
covers is:
All HO policies provide coverage for the insured's
A. Business legal liability to others as a result of premises liability.
B. Professional Further, coverage is extended to include premises
C. Premises where the insured is temporarily residing, and the
D. Auto insured's off-premises activities such as operating
golf carts on a golf course and operating certain
watercraft. However, liability relating to automobiles,
professional and business activities is excluded.
, All are true about an HO-4 (200) C. It does not cover theft of personal property
policy EXCEPT:
All HO policies cover theft of personal property,
A. It is often sold to those who rent although there are special limits that apply to jewelry,
apartments guns, watercraft, etc. Theft is defined as any act of
B. It is also known as "contents broad stealing.
form" coverage
C. It does not cover theft of personal
property
D. It covers both personal property
and personal liability
A DP (dwelling fire policy) is usually C. It cannot qualify for an HO policy
written on an owner occupied
dwelling when: Underwriting is also known as risk "classification".
Underwriters may offer DP coverage to an owner of
A. It is used for commercial purposes a home that does not qualify for a HO due to
B. It is part of a farm underwriting reasons, such as its location in a brush
C. It cannot qualify for an HO policy fire area.
D. It is a duplex and only one side is
owner occupied
An insured with a HO-3 ('00) policy A. Zero
covering his dwelling for $100,000
rents out his garage to a friend for his HO policies will not provide coverage for dwelling
woodworking business. In the event (or outbuildings) used commercially
the garage burns down, what is the
most the policy will pay:
A. Zero
B. $10,000
C. $10,000 plus loss of rental income
D. $10,000 plus the value of the
friend's woodworking equipment
Verified Solutions
Save
Terms in this set (100)
All are true about Medical coverage C. Covers regular residents of your household
on a HO ('00) policy EXCEPT it:
Medical coverage on a HO policy is to others, not
A. Covers expenses incurred within 3 residents of your own household. It is a no fault
years of the date of accident 'goodwill' type coverage designed to prevent
B. Covers resident employees lawsuits.
C. Covers regular residents of your
household
D. Is shown as Coverage "F" on the
Declaration page
Coverage "F" on a HO ('00) policy is: C. Medical to others
A. Personal Liability On a HO policy, Coverages A, B, C & D are Section I
B. Personal Property property coverages, Part II of the policy provides
C. Medical to others Coverage E - Personal Liability and Coverage F -
D. Theft Medical
A DP-3 ('02) Special Form dwelling B. Theft of built in appliances
policy covers which of the following:
Since the DP-3 is all-risk on the dwelling and
A. Wear and tear outbuildings, theft of built-in appliances would be
B. Theft of built in appliances covered. However, even all-risk policies have
C. Liability to others exclusions, such as wear and tear and mechanical
D. Mechanical breakdown breakdown. Further, no unendorsed DP policy covers
theft of contents or personal liability. The ('02) merely
refers to the ISO form edition date.
,Section I of a HO ('00) policy covers D. Medical to others
all EXCEPT:
Section I of a HO policy provides the property
A. Dwelling coverages, while Section II provides coverage for
B. Loss of use Personal Liability and Medical to Others.
C. Other Structures
D. Medical to others
On an HO-6 ('00), coverage for B. Broad form named perils
personal property is:
An H0-6 is designed to cover owners of
A. Basic form named perils condominiums or townhouses. The policy will cover
B. Broad form named perils the interior wall and floor coverings as well as built-in
C. Special form all risk appliances. Contents coverage is the same broad
D. Replacement cost form named peril coverage provided by an HO-3.
Only an HO-5 provides all-risk coverage for contents
and contents coverage is always actual cash value,
unless replacement cost coverage is added by
endorsement.
On a scheduled Personal Articles C. Fire
Floater (PAF), which of the following is
an insured peril: A PAF is a type of all-risk inland marine floater that
may be added to a HO by endorsement. However,
A. Inherent vice even all-risk policies contain exclusions, such as wear
B. Wear and tear and tear, inherent vice and latent defect
C. Fire
D. Latent defect
On a HO ('00) policy, coverage for D. Anywhere in the world
personal property applies:
Coverage C on all HO provides contents coverage
A. On premises only anywhere in the world, including coverage for theft
B. Within the U.S. only of personal property. The standard deductible is
C. In North America only $250 per occurrence. However, coverage for
D. Anywhere in the world contents away from home is limited to 10% of
Coverage C.
,What type of construction utilizes C. Frame
wood in the interior walls and roof:
The more fireproof a structure is, the lower the rates.
A. Fire resistant steel Frame (or wood) construction would cost more to
B. Masonry insure than would buildings constructed of block,
C. Frame masonry or fire-resistant materials (steel).
D. Block
On a Property policy, the exclusion on B. Explosion
earth movement excludes all EXCEPT:
Even the Basic DP-1 provides coverage for explosion
A. Earthquake (remember WHARVES).
B. Explosion
C. Landslide
D. Mud flow
On a HO-3 ('00), rain damage to D. If the wind damages the dwelling allowing the rain
contents is covered: to enter
A. Never, since contents coverage is Contents coverage on an all-risk HO-3 is still named
named peril peril, and rain is not one of the perils specified.
B. Always, since rain damage is a However, if wind damaged the roof, the subsequent
covered peril rain damage to contents would be covered. In other
C. Always, since the HO-3 is all risk words, wind was the 'proximate' cause of the loss.
D. If the wind damages the dwelling
allowing the rain to enter
The liability exposure that a HO policy C. Premises
covers is:
All HO policies provide coverage for the insured's
A. Business legal liability to others as a result of premises liability.
B. Professional Further, coverage is extended to include premises
C. Premises where the insured is temporarily residing, and the
D. Auto insured's off-premises activities such as operating
golf carts on a golf course and operating certain
watercraft. However, liability relating to automobiles,
professional and business activities is excluded.
, All are true about an HO-4 (200) C. It does not cover theft of personal property
policy EXCEPT:
All HO policies cover theft of personal property,
A. It is often sold to those who rent although there are special limits that apply to jewelry,
apartments guns, watercraft, etc. Theft is defined as any act of
B. It is also known as "contents broad stealing.
form" coverage
C. It does not cover theft of personal
property
D. It covers both personal property
and personal liability
A DP (dwelling fire policy) is usually C. It cannot qualify for an HO policy
written on an owner occupied
dwelling when: Underwriting is also known as risk "classification".
Underwriters may offer DP coverage to an owner of
A. It is used for commercial purposes a home that does not qualify for a HO due to
B. It is part of a farm underwriting reasons, such as its location in a brush
C. It cannot qualify for an HO policy fire area.
D. It is a duplex and only one side is
owner occupied
An insured with a HO-3 ('00) policy A. Zero
covering his dwelling for $100,000
rents out his garage to a friend for his HO policies will not provide coverage for dwelling
woodworking business. In the event (or outbuildings) used commercially
the garage burns down, what is the
most the policy will pay:
A. Zero
B. $10,000
C. $10,000 plus loss of rental income
D. $10,000 plus the value of the
friend's woodworking equipment
