A.D Banker Chapter 5 well answered

In what way is the HO-5, Comprehensive Form different from the HO-3, Special Form? - ANSWERSPersonal property is insured on an open perils basis An owner of a condominium unit would purchase which Homeowner form? - ANSWERSHO-6, Unit-owners Form The insured condo is damaged by burglars. The insurer pays for the damage to the property, but it does not cover the contents that do not belong to the insured. - ANSWERSHO-6 (Unit-Owners Form) The insured property is damaged in a hailstorm. Because of the age of the home, the insurer pays for materials that will perform the same function as the original materials. - ANSWERSHO-8 (Modified Form) The insured property was vandalized, and the windows and fence were damaged. The insurer pays the claim on a replacement cost basis. - ANSWERSHO-3 (Special Form) The insured property and some contents inside are damaged after a deer broke into the home. The insurer pays for damages to the building on a replacement cost basis and damages to personal property on an actual cash value basis. - ANSWERSHO-5 (Comprehensive Form) J is teaching a family member, T, how to drive J's car. T accidentally drives into J's garage and fence, causing damages. The damages to the garage are covered on a replacement cost basis, but the damage to the fence would not be covered under this form. - ANSWERSHO-2 (Broad Form) R is a tenant of a house, and their couch is damaged by accidental discharge of water. The insurer pays the claim on an actual cash value basis. - ANSWERSHO-4 (Contents Broad Form) A related, full-time student away at school and under what age is considered an insured on the Homeowner policy? - ANSWERS24 Coverage A - Dwelling does not cover vandalism and malicious mischief if the dwelling has been vacant for how many days? - ANSWERS60 All of the following special limits of Coverage C are correct, except: - ANSWERS$2,500 for business property away from premises The amount of insurance provided for Coverage C is what percentage of Coverage A on a HO-3, Special Form? - ANSWERS50% HO-8 - ANSWERS10% of Coverage A HO-4 - ANSWERS30% of Coverage C HO-2, HO-3, and HO-5 - ANSWERS30% of Coverage A HO-6 - ANSWERS50% of Coverage C The automatic limit for Coverage D - Fair Rental Value is what percentage of Coverage A under an HO-3, Special Form? - ANSWERS30 The Landlord's Furnishings endorsement provides up to $ _______ of coverage. - ANSWERS2,500 Which of the following is a Section I exclusion in the Homeowners policy? - ANSWERSGovernmental action The Water Back Up and Sump Discharge or Overflow endorsement provides how much coverage for damaged property? - ANSWERS$5,000 All of the following are covered by Coverage F - Medical Payments to Others, except: - ANSWERSAn injury to the insured while mowing the lawn Section II Additional Coverages includes Damage to Property of Others for what limit of insurance? - ANSWERS$1,000 Which of the following is excluded under the Section II exclusions? - ANSWERSVehicle used to assist the handicapped and parked in a public lot The duties required of an injured person seeking coverage under Medical Payments to Others include all of the following, except: - ANSWERSHelp the insurer in settling the claim Which of the following boats is covered under the Watercraft Liability endorsement? - ANSWERSA 20-foot sail boat The insured owns a business they run out of their home. They want coverage for premises operations, advertising injury, and personal injury. - ANSWERSHome Business While visiting the insured's home, the visitor gets sick due to the mold in the insured's property. - ANSWERSLimited Fungi, Wet or Dry Rot, or Bacteria Coverage An insured is concerned about accidentally slandering someone. - ANSWERSPersonal Injury A salesperson has several business products in their home. The salesperson does not have any financial responsibility in this company, but wants liability coverage for the sales products. - ANSWERSBusiness Pursuits The insured's property is mainly used for residence, and they occasionally teach piano lessons out of their home. - ANSWERSPermitted Incidental Occupancies An insured wants liability coverage for the children they watch with their at-home business. However, this would not cover any employees. - ANSWERSHome Day Care The insured is concerned about any injuries that could occur taking people tubing on their boat. - ANSWERSWatercraft Liability All of the following are covered under a Homeowners Policy, except: - ANSWERSAll living expenses incurred when a dwelling becomes uninhabitable after a covered loss An employee, whose duties are related to the maintenance of the residence premises, is defined as which of the following under Section II of the Homeowners Policy? - ANSWERSResidence employee Which statement regarding medical payments under a homeowners policy is true? - ANSWERSMedical payments under a Homeowners Policy will cover funeral expenses Which of the following best describes the reason to purchase an HO-8? - ANSWERSWhen insuring an older home that might create a moral hazard when insurance is written at replacement cost Which of the following claims would be covered under the Personal Injury Endorsement attached to an HO-3 Policy? - ANSWERSLiability arising from publication of material that violates another person's right of privacy Liability for use of which of the following vehicles is not covered by the Homeowners policy? - ANSWERSDune buggy used on a public beach All of the following are true, except: - ANSWERSCoverage D of a Homeowners Policy includes loss of income from an incidental business When using a neighbor's lawnmower, the insured strikes a large rock and causes $2,000 in damage to the neighbor's automobile. Which policy coverage of the insured's Homeowners policy may pay for part of the damage? - ANSWERSPersonal liability The HO-5 personal property coverages are insured on which basis? - ANSWERSOpen Perils Coverage E of a Homeowners Policy would cover which of the following? - ANSWERSBodily Injury to a guest caused by the insured's pet dog Under a Homeowners Policy, Coverage A includes coverage for: - ANSWERSThe dwelling on the premises plus structures that are attached to the dwelling An HO-3 policy provides coverage on which basis? - ANSWERSOpen perils coverage on the dwelling and broad form coverage on the personal property Under Section II of the Homeowners Policy, an employee whose duties are related to the maintenance or use of the residence premises, is defined as: - ANSWERSA residence employee Which of the following is true regarding the HO-3 (Special Form)? - ANSWERSThe dwelling and other structures (Coverages A and B) are written on an open perils basis Vandalism and malicious mischief losses are excluded under the Homeowners Policy: - ANSWERSWhen the property has been vacant for 65 consecutive days