SC Practice Exam - 1st Questions & Answers Graded A

What does the "identity fraud expense" endorsement to a homeowner policy cover? - ANSWER-Covers expenses up to $15,000. This includes attorney fees to cover defense costs. Which of the following best describes the act of arson? - ANSWER-It is usually done as a motive for profit The insured is covered under an HO-6 condominium homeowner form. The limit of coverage is $500,000. In addition, he owns a separate three car garage adjacent to the building worth $100,000. How is the garage covered? - ANSWER-Under HO-6, owned garages or storage buildings are covered for a state amount. The garage is covered as part of the $500,000 limit. A furrier customers policy does not cover: - ANSWER-Loss in excess of the value of the property as declared by the owner. Paul's neighbor Pete gives Paul the keys to his uninsured pickup truck to use whenever Paul wants to. When would this vehicle NOT be considered a "covered auto" on Paul's auto policy? - ANSWER-When Paul's vehicle is out of gas. Any 'auto' or 'trailer' you do not own while used as a temporary substitute for any other vehicle described in "your covered auto" would be covered if it is out of normal use because: Breakdown, Repair, Servicing, Loss, or Destruction. The Part III - Other States Coverage of a Workers Compensation policy provides coverage if: - ANSWER-Only if there is one or more states listed in the other state insurance field on the policy. Fidelity bonds are used to cover: - ANSWER-Employee dishonesty Which of the following phrases best defines "hazard?" - ANSWER-A condition that increases the chances of a loss