RIBO TEST 3 HOME INSURANCE ALREADY PASSED

RIBO TEST 3 HOME INSURANCE ALREADY PASSED In the Homeowners Comprehensive Policy, there are Extensions of Coverage provided. Which of the following extensions increase the amount of insurance? a. Tear Out b. Moving to Another Home Incorrect c. Arson Conviction Reward d. Lock Replacement Arson Conviction Reward Which of the following statements is CORRECT about the Highway Victims Indemnity Fund? It will not pay if the claimant is totally responsible for causing the accident. To cover costs for a business to lease a new location to continue business after an insured loss, the business will require which of the following? a. Profits coverage b. Extra Expense coverage c. Extended Business Profit endorsement Incorrect d. Gross Earnings coverage Extra Expense coverage Your insured owns two secondary residences on the same property and rents one out for $500 per month. A windstorm totally destroys the rental residence and it will take five months to rebuild the dwelling. The Secondary Policy covers the building for $100,000 subject to a $500 deductible. How much would the insured collect under the Rental Value section of the Secondary Policy in addition to the total loss of the dwelling? a. $2,500 b. $2,000 Incorrect c. Nothing, as the Rental Value section is included in the policy limit d. $500 Nothing, as the Rental Value section is included in the policy limit Common law? a. It is the expressed will of the common people governing relationships among all members of society regardless of their status. b. It is a body of well-defined legal principles set out in thousands of court decisions over hundreds of years. c. It is the written law upon which judges make their decisions without being bound by what other judges have done in the past. Incorrect d. It is a written or codified law in the form of acts or statutes created by acts of the federal and provincial legislatures. It is a body of well-defined legal principles set out in thousands of court decisions over hundreds of years. An independent agent or broker must maintain a trust account a. into which all commission amounts are transferred. b. from which all business expenses are paid. c. from which net premiums are paid to insurers. d. into which amounts are transferred to meet emergencies. Incorrect Feedback from which net premiums are paid to insurers. In Section 2 Liability Coverage of the Homeowners Comprehensive Policy, coverage is provided for Voluntary Payment for Damage to Property in which of the following situations? Select one: a. Property of others damaged intentionally by the insured's 10-year-old son, for which he is not legally liable. b. Damage to a ride-on lawnmower rented from a local rental establishment. c. Damage caused by a guest, who backed an automobile into a portable barbeque which the insured had borrowed from a neighbour. Incorrect d. Loss by theft from the insured's premises of a shotgun on loan from a local sporting goods store. Property of others damaged intentionally by the insured's 10-year-old son, for which he is not legally liable. Policyholders pay premiums to an insurance company. Which of the following is the primary responsibility of the insurance company? Select one: a. Manage the funds and pay a few of the losses from it to certain members who suffer them Incorrect b. Invest the premium money to make a profit that is owned and shared by all policyholders c. Manage the funds and pay losses covered by it to those members