Alabama Insurance Exam Prep – Chapter 7 (Updated 2025/2026 Study
Guide & Practice Questions)
Which of the following types of property are covered by the Personal Effects Floater?
A
Golfer's equipment
B
Personal property carried by travelers
C
Paintings, etchings, and pictures
D
Coin collections - correct answerBThis floater covers traveler's personal property on an
open perils basis anywhere in the world except on the insured's premises.
Which of the following statements about the Personal Jewelry Floater is correct?
A
An appraisal of the item is optional
B
The Pair and Sets Clause does not apply
C
Automatic coverage for newly acquired items is only provided for 30 days
D
Coverage is written on a replacement cost basis - correct answerC
Which of the following types of property are covered by the Personal Effects Floater?
A
Golfer's equipment
B
Personal property carried by travelers
C
Paintings, etchings, and pictures
D
, Coin collections - correct answerB
Which of the following is correct about Difference in Conditions (DIC) Insurance?
A
It is written on a standard form similar to the property form
B
Fire and lightning are typical covered perils
C
The Coinsurance Clause is included on all policies
D
Flood is a peril that can be covered by this policy - correct answerD
An open perils policy with a high deductible used to fill coverage gaps in a property
policy for certain perils, such as earthquake, flood, collapse and subsidence - correct
answerDifference in Conditions Insurance
Insures large vessels and includes Hull insurance, Protection and Indemnity and
Medical Payments coverage and a Lay Up Warranty - correct answerYacht Policy
Insures individual personal property on a scheduled basis with open perils coverage
worldwide - correct answerPersonal Articles Floater
Packaged policy for boats that can be towed by a car and provides open perils
coverage for the hull, motor, trailer and equipment as well as watercraft liability, medical
payments, and uninsured boaters coverage - correct answerBoatowners Policy
Provides open perils coverage for personal property worn or carried by tourists and
travelers anywhere in the world except the insured's home - correct answerPersonal
Effects Floater
In order to be considered a single occurrence, the Earthquake endorsement covers all
earth movement that occurs within what time period?
A
36 Hours
B
12 Hours
C
72 Hours
Guide & Practice Questions)
Which of the following types of property are covered by the Personal Effects Floater?
A
Golfer's equipment
B
Personal property carried by travelers
C
Paintings, etchings, and pictures
D
Coin collections - correct answerBThis floater covers traveler's personal property on an
open perils basis anywhere in the world except on the insured's premises.
Which of the following statements about the Personal Jewelry Floater is correct?
A
An appraisal of the item is optional
B
The Pair and Sets Clause does not apply
C
Automatic coverage for newly acquired items is only provided for 30 days
D
Coverage is written on a replacement cost basis - correct answerC
Which of the following types of property are covered by the Personal Effects Floater?
A
Golfer's equipment
B
Personal property carried by travelers
C
Paintings, etchings, and pictures
D
, Coin collections - correct answerB
Which of the following is correct about Difference in Conditions (DIC) Insurance?
A
It is written on a standard form similar to the property form
B
Fire and lightning are typical covered perils
C
The Coinsurance Clause is included on all policies
D
Flood is a peril that can be covered by this policy - correct answerD
An open perils policy with a high deductible used to fill coverage gaps in a property
policy for certain perils, such as earthquake, flood, collapse and subsidence - correct
answerDifference in Conditions Insurance
Insures large vessels and includes Hull insurance, Protection and Indemnity and
Medical Payments coverage and a Lay Up Warranty - correct answerYacht Policy
Insures individual personal property on a scheduled basis with open perils coverage
worldwide - correct answerPersonal Articles Floater
Packaged policy for boats that can be towed by a car and provides open perils
coverage for the hull, motor, trailer and equipment as well as watercraft liability, medical
payments, and uninsured boaters coverage - correct answerBoatowners Policy
Provides open perils coverage for personal property worn or carried by tourists and
travelers anywhere in the world except the insured's home - correct answerPersonal
Effects Floater
In order to be considered a single occurrence, the Earthquake endorsement covers all
earth movement that occurs within what time period?
A
36 Hours
B
12 Hours
C
72 Hours
