PROPERTY AND CASUALTY REVIEW TIPS ANSWERS
AND QUESTIONS SET A+
✔✔If an insured operates a home day care business out of his house, how can he
ensure the liability exposure coverage? - ✔✔Attach the home day care coverage
endorsement to the HO policy
✔✔Which of the following losses would NOT be covered by the dwelling policy if the
dwelling is vacant for over 60 days? - ✔✔Vandalism
(fire, windstorm, and internal explosion are covered)
✔✔Who would participate in a Write Your Own (WYO) flood insurance program? -
✔✔Private insurers that wish to write and service National Flood Insurance policies on a
no risk bearing basis
✔✔How does the mobilehome endorsement affect the other coverage of law or
ordinance in a homeowners policy? - ✔✔It removes the coverage
✔✔According to the common policy conditions for a commercial package policy, if the
insured dies, the policy rights and duties - ✔✔Automatically transfer to a legal
representative
✔✔Valuable papers and records form provides coverage for the reconstruction of all of
the following types of records EXCEPT - ✔✔Prepackaged software
(deeds, historical records, and blueprints are all covered)
✔✔A businessowners policy is - ✔✔A self-contained prepackage policy
✔✔In a commercial package policy, who may cancel the policy in writing and make
changes to the policy with the consent of the insurer? - ✔✔First named insured
✔✔Under a dwelling policy, which of the following clauses applies if an insured has lost
one of two matching silver candlesticks? - ✔✔Pair or set
,(if only one item of a set has been lost, the insurer is not obligated to pay the total value
of the set)
✔✔Which of the following would be covered under the Film Coverage Form? - ✔✔None
are covered
(deterioration of a film
exposure of a negative film to light
electrical erasure of a tape)
✔✔The regular National Flood Insurance Program would insure an eligible single-family
dwelling for up to - ✔✔$250,000
✔✔Under the commercial property coverage program, the basic causes of loss form
insures against loss caused by - ✔✔Sprinkler leakage
✔✔Which situation would NOT be covered by the basic Causes of Loss form under a
commercial property policy? - ✔✔The surf side club waterfront restaurant is damaged
when flood waters rise and seep into the restaurant
✔✔An endorsement added to a businessowners policy that provides coverage for direct
damage caused by utility service disruption stemming from a covered peril is called -
✔✔Utility Services - direct damage
✔✔Which of the following covers a carrier for liability for loss to cargo while it is being
transported in a truck? - ✔✔Motor truck cargo policy - truckers form
✔✔A house insured under a dwelling policy has been vacant for 70 consecutive days.
Which of the following statements is true? - ✔✔Loss by vandalism and malicious
mischief is excluded
✔✔An insured condominium unit owner wants to purchase fire and extended coverage
for personal property and liability coverage for himself and his family members. He
should purchase - ✔✔HO-6
✔✔On a DP-3 Dwelling Property Special Form policy, the coverage provided for
personal property is - ✔✔The same as provided on the DP-2 broad form
✔✔A business using its own trucks to move its own cargo would insure the cargo using
- ✔✔Motor truck cargo - owners form
✔✔Which of the following homeowners forms is designed for individuals that own and
reside in a condominium? - ✔✔HO-6
, ✔✔How long is the waiting period after the application has been accepted before flood
coverage goes into effect? - ✔✔30 days
✔✔If the insured owns a watch valued at $10,000, full coverage can be provided on a
homeowners policy by purchasing the - ✔✔Scheduled personal property endorsement
✔✔Which of the following would NOT be covered by medical payments to others in
Section II of your HO policy? - ✔✔You cut your leg while whacking weeds in your
backyard with your neighbor's weed whacker
✔✔Uncle Billy's Burger Bar was forced to close for 10 days in August when the power
company's transformer was destroyed by lightning, and Uncle Billy was without
electricity. Which of the following endorsements could be added to Billy's
businessowners policy that would provide protection against loss of income from such
events? - ✔✔Utility services - time element endorsement
✔✔Which of the following would NOT be considered a flood? - ✔✔Sewer backup
✔✔According to the appraisal condition of a homeowners policy, what procedure may
be followed if the insurer and insured do not agree as to the size of a loss? - ✔✔Each
side selects its own appraiser, and the appraisers select an umpire to settle any
differences between the appraisers
✔✔A BOP (businessowners policy) is most similar to - ✔✔Homeowners
=because both require that the policy provide property insurance and liability insurance
in a single policy
✔✔A covered watercraft was damaged in an accident. The actual cash value of the
damaged property was assessed at $10,000. The cost of repairs for the watercraft was
assessed at $5,000. The insured's watercraft policy is written with a $25,000 limit. How
much will the insurer pay for coverage to damage to the watercraft? - ✔✔$5,000
✔✔\Under the HO-4 and HO-6 homeowners policy forms, property is insured against -
✔✔Broad form perils
(they provide the same level of coverage as Coverage C in the HO-2 and HO-3)
✔✔Which policy condition in HO policies states that insurance applies separately to
each insured? - ✔✔Severability of insurance
(this means that the insurance applies separately to each insured. This condition does
not increase the insurer's liability for any one occurrence)
AND QUESTIONS SET A+
✔✔If an insured operates a home day care business out of his house, how can he
ensure the liability exposure coverage? - ✔✔Attach the home day care coverage
endorsement to the HO policy
✔✔Which of the following losses would NOT be covered by the dwelling policy if the
dwelling is vacant for over 60 days? - ✔✔Vandalism
(fire, windstorm, and internal explosion are covered)
✔✔Who would participate in a Write Your Own (WYO) flood insurance program? -
✔✔Private insurers that wish to write and service National Flood Insurance policies on a
no risk bearing basis
✔✔How does the mobilehome endorsement affect the other coverage of law or
ordinance in a homeowners policy? - ✔✔It removes the coverage
✔✔According to the common policy conditions for a commercial package policy, if the
insured dies, the policy rights and duties - ✔✔Automatically transfer to a legal
representative
✔✔Valuable papers and records form provides coverage for the reconstruction of all of
the following types of records EXCEPT - ✔✔Prepackaged software
(deeds, historical records, and blueprints are all covered)
✔✔A businessowners policy is - ✔✔A self-contained prepackage policy
✔✔In a commercial package policy, who may cancel the policy in writing and make
changes to the policy with the consent of the insurer? - ✔✔First named insured
✔✔Under a dwelling policy, which of the following clauses applies if an insured has lost
one of two matching silver candlesticks? - ✔✔Pair or set
,(if only one item of a set has been lost, the insurer is not obligated to pay the total value
of the set)
✔✔Which of the following would be covered under the Film Coverage Form? - ✔✔None
are covered
(deterioration of a film
exposure of a negative film to light
electrical erasure of a tape)
✔✔The regular National Flood Insurance Program would insure an eligible single-family
dwelling for up to - ✔✔$250,000
✔✔Under the commercial property coverage program, the basic causes of loss form
insures against loss caused by - ✔✔Sprinkler leakage
✔✔Which situation would NOT be covered by the basic Causes of Loss form under a
commercial property policy? - ✔✔The surf side club waterfront restaurant is damaged
when flood waters rise and seep into the restaurant
✔✔An endorsement added to a businessowners policy that provides coverage for direct
damage caused by utility service disruption stemming from a covered peril is called -
✔✔Utility Services - direct damage
✔✔Which of the following covers a carrier for liability for loss to cargo while it is being
transported in a truck? - ✔✔Motor truck cargo policy - truckers form
✔✔A house insured under a dwelling policy has been vacant for 70 consecutive days.
Which of the following statements is true? - ✔✔Loss by vandalism and malicious
mischief is excluded
✔✔An insured condominium unit owner wants to purchase fire and extended coverage
for personal property and liability coverage for himself and his family members. He
should purchase - ✔✔HO-6
✔✔On a DP-3 Dwelling Property Special Form policy, the coverage provided for
personal property is - ✔✔The same as provided on the DP-2 broad form
✔✔A business using its own trucks to move its own cargo would insure the cargo using
- ✔✔Motor truck cargo - owners form
✔✔Which of the following homeowners forms is designed for individuals that own and
reside in a condominium? - ✔✔HO-6
, ✔✔How long is the waiting period after the application has been accepted before flood
coverage goes into effect? - ✔✔30 days
✔✔If the insured owns a watch valued at $10,000, full coverage can be provided on a
homeowners policy by purchasing the - ✔✔Scheduled personal property endorsement
✔✔Which of the following would NOT be covered by medical payments to others in
Section II of your HO policy? - ✔✔You cut your leg while whacking weeds in your
backyard with your neighbor's weed whacker
✔✔Uncle Billy's Burger Bar was forced to close for 10 days in August when the power
company's transformer was destroyed by lightning, and Uncle Billy was without
electricity. Which of the following endorsements could be added to Billy's
businessowners policy that would provide protection against loss of income from such
events? - ✔✔Utility services - time element endorsement
✔✔Which of the following would NOT be considered a flood? - ✔✔Sewer backup
✔✔According to the appraisal condition of a homeowners policy, what procedure may
be followed if the insurer and insured do not agree as to the size of a loss? - ✔✔Each
side selects its own appraiser, and the appraisers select an umpire to settle any
differences between the appraisers
✔✔A BOP (businessowners policy) is most similar to - ✔✔Homeowners
=because both require that the policy provide property insurance and liability insurance
in a single policy
✔✔A covered watercraft was damaged in an accident. The actual cash value of the
damaged property was assessed at $10,000. The cost of repairs for the watercraft was
assessed at $5,000. The insured's watercraft policy is written with a $25,000 limit. How
much will the insurer pay for coverage to damage to the watercraft? - ✔✔$5,000
✔✔\Under the HO-4 and HO-6 homeowners policy forms, property is insured against -
✔✔Broad form perils
(they provide the same level of coverage as Coverage C in the HO-2 and HO-3)
✔✔Which policy condition in HO policies states that insurance applies separately to
each insured? - ✔✔Severability of insurance
(this means that the insurance applies separately to each insured. This condition does
not increase the insurer's liability for any one occurrence)
