1) PERSONAL LINES FINAL EXAM 1 QUESTIONS AND
CORRECT ANSWERS
All care ctrue cabout cMedical ccoverage con ca cHO c('00) cpolicy cEXCEPT cit:
A. cCovers cexpenses cincurred cwithin c3 cyears cof cthe cdate cof caccident
B. cCovers cresident cemployees
C. cCovers cregular cresidents cof cyour chousehold
D. cIs cshown cas cCoverage c"F" con cthe cDeclaration cpage c- cCORRECT cANS✔✔C. cCovers cregular cresidents cof cyour
chousehold
Medical ccoverage con ca cHO cpolicy cis cto cothers, cnot cresidents cof cyour cown chousehold. cIt cis ca cno cfault c'goodwill' ctype
ccoverage cdesigned cto cprevent clawsuits.
Coverage c"F" con ca cHO c('00) cpolicy cis:
A. cPersonal cLiability
B. cPersonal cProperty
C. cMedical cto cothers
D. cTheft c- cCORRECT cANS✔✔C. cMedical cto cothers
On ca cHO cpolicy, cCoverages cA, cB, cC c& cD care cSection cI cproperty ccoverages, cPart cII cof cthe cpolicy cprovides cCoverage cE c-
cPersonal cLiability cand cCoverage cF c- cMedical
A cDP-3 c('02) cSpecial cForm cdwelling cpolicy ccovers cwhich cof cthe cfollowing:
A. cWear cand ctear
B. cTheft cof cbuilt cin cappliances
C. cLiability cto cothers
D. cMechanical cbreakdown c- cCORRECT cANS✔✔B. cTheft cof cbuilt cin cappliances
Since cthe cDP-3 cis call-risk con cthe cdwelling cand coutbuildings, ctheft cof cbuilt-in cappliances cwould cbe ccovered. cHowever, ceven
call-risk cpolicies chave cexclusions, csuch cas cwear cand ctear cand cmechanical cbreakdown. cFurther, cno cunendorsed cDP cpolicy
ccovers ctheft cof ccontents cor cpersonal cliability. cThe c('02) cmerely crefers cto cthe cISO cform cedition cdate.
Section cI cof ca cHO c('00) cpolicy ccovers call cEXCEPT:
A. cDwelling
B. cLoss cof cuse
C. cOther cStructures
D. cMedical cto cothers c- cCORRECT cANS✔✔D. cMedical cto cothers
Section cI cof ca cHO cpolicy cprovides cthe cproperty ccoverages, cwhile cSection cII cprovides ccoverage cfor cPersonal cLiability cand
cMedical cto cOthers.
On can cHO-6 c('00), ccoverage cfor cpersonal cproperty cis:
A. cBasic cform cnamed cperils
B. cBroad cform cnamed cperils
C. cSpecial cform call crisk
D. cReplacement ccost c- cCORRECT cANS✔✔B. cBroad cform cnamed cperils
An cH0-6 cis cdesigned cto ccover cowners cof ccondominiums cor ctownhouses. cThe cpolicy cwill ccover cthe cinterior cwall cand cfloor
ccoverings cas cwell cas cbuilt-in cappliances. cContents ccoverage cis cthe csame cbroad cform cnamed cperil ccoverage cprovided cby can
, cHO-3. cOnly can cHO-5 cprovides call-risk ccoverage cfor ccontents cand ccontents ccoverage cis calways cactual ccash cvalue, cunless
creplacement ccost ccoverage cis cadded cby cendorsement.
On ca cscheduled cPersonal cArticles cFloater c(PAF), cwhich cof cthe cfollowing cis can cinsured cperil:
A. cInherent cvice
B. cWear cand ctear
C. cFire
D. cLatent cdefect c- cCORRECT cANS✔✔C. cFire
A cPAF cis ca ctype cof call-risk cinland cmarine cfloater cthat cmay cbe cadded cto ca cHO cby cendorsement. cHowever, ceven call-risk
cpolicies ccontain cexclusions, csuch cas cwear cand ctear, cinherent cvice cand clatent cdefect
On ca cHO c('00) cpolicy, ccoverage cfor cpersonal cproperty capplies:
A. cOn cpremises conly
B. cWithin cthe cU.S. conly
C. cIn cNorth cAmerica conly
D. cAnywhere cin cthe cworld c- cCORRECT cANS✔✔D. cAnywhere cin cthe cworld
Coverage cC con call cHO cprovides ccontents ccoverage canywhere cin cthe cworld, cincluding ccoverage cfor ctheft cof cpersonal
cproperty. cThe cstandard cdeductible cis c$250 cper coccurrence. cHowever, ccoverage cfor ccontents caway cfrom chome cis climited cto
c10% cof cCoverage cC.
What ctype cof cconstruction cutilizes cwood cin cthe cinterior cwalls cand croof:
A. cFire cresistant csteel
B. cMasonry
C. cFrame
D. cBlock c- cCORRECT cANS✔✔C. cFrame
The cmore cfireproof ca cstructure cis, cthe clower cthe crates. cFrame c(or cwood) cconstruction cwould ccost cmore cto cinsure cthan
cwould cbuildings cconstructed cof cblock, cmasonry cor cfire-resistant cmaterials c(steel).
On ca cProperty cpolicy, cthe cexclusion con cearth cmovement cexcludes call cEXCEPT:
A. cEarthquake
B. cExplosion
C. cLandslide
D. cMud cflow c- cCORRECT cANS✔✔B. cExplosion
Even cthe cBasic cDP-1 cprovides ccoverage cfor cexplosion c(remember cWHARVES).
On ca cHO-3 c('00), crain cdamage cto ccontents cis ccovered:
A. cNever, csince ccontents ccoverage cis cnamed cperil
B. cAlways, csince crain cdamage cis ca ccovered cperil
C. cAlways, csince cthe cHO-3 cis call crisk
D. cIf cthe cwind cdamages cthe cdwelling callowing cthe crain cto center c- cCORRECT cANS✔✔D. cIf cthe cwind cdamages cthe cdwelling
callowing cthe crain cto center
Contents ccoverage con can call-risk cHO-3 cis cstill cnamed cperil, cand crain cis cnot cone cof cthe cperils cspecified. cHowever, cif cwind
cdamaged cthe croof, cthe csubsequent crain cdamage cto ccontents cwould cbe ccovered. cIn cother cwords, cwind cwas cthe c'proximate'
ccause cof cthe closs.
The cliability cexposure cthat ca cHO cpolicy ccovers cis:
A. cBusiness
B. cProfessional
C. cPremises
D. cAuto c- cCORRECT cANS✔✔C. cPremises
All cHO cpolicies cprovide ccoverage cfor cthe cinsured's clegal cliability cto cothers cas ca cresult cof cpremises cliability. cFurther,
ccoverage cis cextended cto cinclude cpremises cwhere cthe cinsured cis ctemporarily cresiding, cand cthe cinsured's coff-premises
cactivities csuch cas coperating cgolf ccarts con ca cgolf ccourse cand coperating ccertain cwatercraft. cHowever, cliability crelating cto
cautomobiles, cprofessional cand cbusiness cactivities cis cexcluded.
All care ctrue cabout can cHO-4 c(200) cpolicy cEXCEPT:
A. cIt cis coften csold cto cthose cwho crent capartments
B. cIt cis calso cknown cas c"contents cbroad cform" ccoverage
C. cIt cdoes cnot ccover ctheft cof cpersonal cproperty
D. cIt ccovers cboth cpersonal cproperty cand cpersonal cliability c- cCORRECT cANS✔✔C. cIt cdoes cnot ccover ctheft cof cpersonal
cproperty
CORRECT ANSWERS
All care ctrue cabout cMedical ccoverage con ca cHO c('00) cpolicy cEXCEPT cit:
A. cCovers cexpenses cincurred cwithin c3 cyears cof cthe cdate cof caccident
B. cCovers cresident cemployees
C. cCovers cregular cresidents cof cyour chousehold
D. cIs cshown cas cCoverage c"F" con cthe cDeclaration cpage c- cCORRECT cANS✔✔C. cCovers cregular cresidents cof cyour
chousehold
Medical ccoverage con ca cHO cpolicy cis cto cothers, cnot cresidents cof cyour cown chousehold. cIt cis ca cno cfault c'goodwill' ctype
ccoverage cdesigned cto cprevent clawsuits.
Coverage c"F" con ca cHO c('00) cpolicy cis:
A. cPersonal cLiability
B. cPersonal cProperty
C. cMedical cto cothers
D. cTheft c- cCORRECT cANS✔✔C. cMedical cto cothers
On ca cHO cpolicy, cCoverages cA, cB, cC c& cD care cSection cI cproperty ccoverages, cPart cII cof cthe cpolicy cprovides cCoverage cE c-
cPersonal cLiability cand cCoverage cF c- cMedical
A cDP-3 c('02) cSpecial cForm cdwelling cpolicy ccovers cwhich cof cthe cfollowing:
A. cWear cand ctear
B. cTheft cof cbuilt cin cappliances
C. cLiability cto cothers
D. cMechanical cbreakdown c- cCORRECT cANS✔✔B. cTheft cof cbuilt cin cappliances
Since cthe cDP-3 cis call-risk con cthe cdwelling cand coutbuildings, ctheft cof cbuilt-in cappliances cwould cbe ccovered. cHowever, ceven
call-risk cpolicies chave cexclusions, csuch cas cwear cand ctear cand cmechanical cbreakdown. cFurther, cno cunendorsed cDP cpolicy
ccovers ctheft cof ccontents cor cpersonal cliability. cThe c('02) cmerely crefers cto cthe cISO cform cedition cdate.
Section cI cof ca cHO c('00) cpolicy ccovers call cEXCEPT:
A. cDwelling
B. cLoss cof cuse
C. cOther cStructures
D. cMedical cto cothers c- cCORRECT cANS✔✔D. cMedical cto cothers
Section cI cof ca cHO cpolicy cprovides cthe cproperty ccoverages, cwhile cSection cII cprovides ccoverage cfor cPersonal cLiability cand
cMedical cto cOthers.
On can cHO-6 c('00), ccoverage cfor cpersonal cproperty cis:
A. cBasic cform cnamed cperils
B. cBroad cform cnamed cperils
C. cSpecial cform call crisk
D. cReplacement ccost c- cCORRECT cANS✔✔B. cBroad cform cnamed cperils
An cH0-6 cis cdesigned cto ccover cowners cof ccondominiums cor ctownhouses. cThe cpolicy cwill ccover cthe cinterior cwall cand cfloor
ccoverings cas cwell cas cbuilt-in cappliances. cContents ccoverage cis cthe csame cbroad cform cnamed cperil ccoverage cprovided cby can
, cHO-3. cOnly can cHO-5 cprovides call-risk ccoverage cfor ccontents cand ccontents ccoverage cis calways cactual ccash cvalue, cunless
creplacement ccost ccoverage cis cadded cby cendorsement.
On ca cscheduled cPersonal cArticles cFloater c(PAF), cwhich cof cthe cfollowing cis can cinsured cperil:
A. cInherent cvice
B. cWear cand ctear
C. cFire
D. cLatent cdefect c- cCORRECT cANS✔✔C. cFire
A cPAF cis ca ctype cof call-risk cinland cmarine cfloater cthat cmay cbe cadded cto ca cHO cby cendorsement. cHowever, ceven call-risk
cpolicies ccontain cexclusions, csuch cas cwear cand ctear, cinherent cvice cand clatent cdefect
On ca cHO c('00) cpolicy, ccoverage cfor cpersonal cproperty capplies:
A. cOn cpremises conly
B. cWithin cthe cU.S. conly
C. cIn cNorth cAmerica conly
D. cAnywhere cin cthe cworld c- cCORRECT cANS✔✔D. cAnywhere cin cthe cworld
Coverage cC con call cHO cprovides ccontents ccoverage canywhere cin cthe cworld, cincluding ccoverage cfor ctheft cof cpersonal
cproperty. cThe cstandard cdeductible cis c$250 cper coccurrence. cHowever, ccoverage cfor ccontents caway cfrom chome cis climited cto
c10% cof cCoverage cC.
What ctype cof cconstruction cutilizes cwood cin cthe cinterior cwalls cand croof:
A. cFire cresistant csteel
B. cMasonry
C. cFrame
D. cBlock c- cCORRECT cANS✔✔C. cFrame
The cmore cfireproof ca cstructure cis, cthe clower cthe crates. cFrame c(or cwood) cconstruction cwould ccost cmore cto cinsure cthan
cwould cbuildings cconstructed cof cblock, cmasonry cor cfire-resistant cmaterials c(steel).
On ca cProperty cpolicy, cthe cexclusion con cearth cmovement cexcludes call cEXCEPT:
A. cEarthquake
B. cExplosion
C. cLandslide
D. cMud cflow c- cCORRECT cANS✔✔B. cExplosion
Even cthe cBasic cDP-1 cprovides ccoverage cfor cexplosion c(remember cWHARVES).
On ca cHO-3 c('00), crain cdamage cto ccontents cis ccovered:
A. cNever, csince ccontents ccoverage cis cnamed cperil
B. cAlways, csince crain cdamage cis ca ccovered cperil
C. cAlways, csince cthe cHO-3 cis call crisk
D. cIf cthe cwind cdamages cthe cdwelling callowing cthe crain cto center c- cCORRECT cANS✔✔D. cIf cthe cwind cdamages cthe cdwelling
callowing cthe crain cto center
Contents ccoverage con can call-risk cHO-3 cis cstill cnamed cperil, cand crain cis cnot cone cof cthe cperils cspecified. cHowever, cif cwind
cdamaged cthe croof, cthe csubsequent crain cdamage cto ccontents cwould cbe ccovered. cIn cother cwords, cwind cwas cthe c'proximate'
ccause cof cthe closs.
The cliability cexposure cthat ca cHO cpolicy ccovers cis:
A. cBusiness
B. cProfessional
C. cPremises
D. cAuto c- cCORRECT cANS✔✔C. cPremises
All cHO cpolicies cprovide ccoverage cfor cthe cinsured's clegal cliability cto cothers cas ca cresult cof cpremises cliability. cFurther,
ccoverage cis cextended cto cinclude cpremises cwhere cthe cinsured cis ctemporarily cresiding, cand cthe cinsured's coff-premises
cactivities csuch cas coperating cgolf ccarts con ca cgolf ccourse cand coperating ccertain cwatercraft. cHowever, cliability crelating cto
cautomobiles, cprofessional cand cbusiness cactivities cis cexcluded.
All care ctrue cabout can cHO-4 c(200) cpolicy cEXCEPT:
A. cIt cis coften csold cto cthose cwho crent capartments
B. cIt cis calso cknown cas c"contents cbroad cform" ccoverage
C. cIt cdoes cnot ccover ctheft cof cpersonal cproperty
D. cIt ccovers cboth cpersonal cproperty cand cpersonal cliability c- cCORRECT cANS✔✔C. cIt cdoes cnot ccover ctheft cof cpersonal
cproperty
