OTL PRACTICE 5 EXAM QUESTIONS AND ANSWERS
Which of the following is not covered under the liability section of Homeowner policy? - CORRECT
ANSWER✅✅The insured picks up a hot pot from the stove and is badly burned by it causing her to miss
several weeks from work.
Which of the following have no limit on the amount paid (other than the policy limit)? - CORRECT
ANSWER✅✅The theft of freezer food.
Which policy is most similar to Mobile Homeowner's? - CORRECT ANSWER✅✅The basic Homeowners
form.
A building is worth $360,000 and is subject to an 80% coinsurance clause. It is insured for $90,000 and
there is a fire that causes $72,000 worth of damage. Which of the following will the policy pay?
a) $57,6000
b)$90,000
c) $72,000
d) $22,500 - CORRECT ANSWER✅✅D - $22,500
Common Law is
a) based on Old English Laws that used to apply to the common law
b)the law that regulates matrimonial relationships
c) sometimes referred to as case law
d) law that had its origins in Quebec - CORRECT ANSWER✅✅C -sometimes referred to as case law
Insurable interest it - CORRECT ANSWER✅✅the monetary interest a person might have in the
happening of a loss
A replacement Cost Contract
, a)will pay for new item lost or damaged but will deduct for depreciation
b)denies the principle of Utmost Good Faith
c) in effect, offends the principle of indemnity
d)is a contract of compensation - CORRECT ANSWER✅✅C - in effect, offends the principle of indemnity
Consideration as it relates to insurance is - CORRECT ANSWER✅✅The premium
The valued contract is a policy - CORRECT ANSWER✅✅Which will pay a specific agreed amount
Actual cash value of an item is best described as
a) replacement value
b) fair market value
c) salvage value
d) value at the time of purchase - CORRECT ANSWER✅✅b) fair market value
Trust accounts are designed for - CORRECT ANSWER✅✅depositing premiums due to the insurer
your client has recently purchased a resale condo town house whose previous owner installed a fully
finished basement. Which coverage below would ensure the client is protected? - CORRECT
ANSWER✅✅improvements and betterments
A bailee could be someone who - CORRECT ANSWER✅✅has someone else's property in his possession
for repairs
A 14-year-old child deliberately breaks a friends bike. which sec. of the parents Homeowner's policy
would it cover?
a) legal liability
Which of the following is not covered under the liability section of Homeowner policy? - CORRECT
ANSWER✅✅The insured picks up a hot pot from the stove and is badly burned by it causing her to miss
several weeks from work.
Which of the following have no limit on the amount paid (other than the policy limit)? - CORRECT
ANSWER✅✅The theft of freezer food.
Which policy is most similar to Mobile Homeowner's? - CORRECT ANSWER✅✅The basic Homeowners
form.
A building is worth $360,000 and is subject to an 80% coinsurance clause. It is insured for $90,000 and
there is a fire that causes $72,000 worth of damage. Which of the following will the policy pay?
a) $57,6000
b)$90,000
c) $72,000
d) $22,500 - CORRECT ANSWER✅✅D - $22,500
Common Law is
a) based on Old English Laws that used to apply to the common law
b)the law that regulates matrimonial relationships
c) sometimes referred to as case law
d) law that had its origins in Quebec - CORRECT ANSWER✅✅C -sometimes referred to as case law
Insurable interest it - CORRECT ANSWER✅✅the monetary interest a person might have in the
happening of a loss
A replacement Cost Contract
, a)will pay for new item lost or damaged but will deduct for depreciation
b)denies the principle of Utmost Good Faith
c) in effect, offends the principle of indemnity
d)is a contract of compensation - CORRECT ANSWER✅✅C - in effect, offends the principle of indemnity
Consideration as it relates to insurance is - CORRECT ANSWER✅✅The premium
The valued contract is a policy - CORRECT ANSWER✅✅Which will pay a specific agreed amount
Actual cash value of an item is best described as
a) replacement value
b) fair market value
c) salvage value
d) value at the time of purchase - CORRECT ANSWER✅✅b) fair market value
Trust accounts are designed for - CORRECT ANSWER✅✅depositing premiums due to the insurer
your client has recently purchased a resale condo town house whose previous owner installed a fully
finished basement. Which coverage below would ensure the client is protected? - CORRECT
ANSWER✅✅improvements and betterments
A bailee could be someone who - CORRECT ANSWER✅✅has someone else's property in his possession
for repairs
A 14-year-old child deliberately breaks a friends bike. which sec. of the parents Homeowner's policy
would it cover?
a) legal liability
