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CPCU 553 FINAL BRAND NEW OFFICIAL
QUESTIONS WITH ANSWERS.
Detached structures are covered under
A. Homeowners policies, but not under dwelling policies.
B. Coverage B of the DP-3 policy.
C. Coverage C of the DP-3 policy.
D. Coverage A of the DP-3 policy. - correct answer -B. Coverage
B of the DP-3 policy.
John's house is insured under a DP-3 policy with a Coverage A
limit of $100,000. John temporarily repairs a roof that is damaged
in a hurricane until he can have the roof replaced. How much, if
any, is available in addition to the $100,000 Coverage A limit
under the policy to pay for the temporary repairs?
A. $0
B. $1,000
C. $5,000
D. $10,000 - correct answer -A. $0
Which one of the following is true regarding ISO's Mobilehome
Endorsement (MH 04 01) when attached to a homeowners form?
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A. It provides a minimum limit under Coverage B—Other
Structures—of $1,000.
C. It broadens the liability coverage.
D. It removes coverage for "ordinance or law". - correct answer -
D. It removes coverage for "ordinance or law".
For an urban area subject to riot and civil commotion, the
operators of a group that jointly underwrite and share the risks
and profits of property insurance in that area are known as
A. A FAIR plan.
B. A syndicate.
C. A citizens property insurance corporation.
D. A beachfront and windstorm plan. - correct answer -B. A
syndicate.
Jennifer owns a valuable stamp collection, and her insurer
refuses to provide the required amount of coverage by
endorsement to her homeowners policy. Which one of the
following types of personal inland marine coverage forms should
Jennifer use to cover her stamp collection for its full value on a
scheduled basis?
A. Personal Effects Form
B. Personal Property Form
C. Personal Articles Standard Loss Settlement Form
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D. Floating Property Form - correct answer -C. Personal Articles
Standard Loss Settlement Form
Which one of the following is a warranty commonly applied to
personal watercraft insurance?
A. Mechanical breakdown
B. Uninsured boaters
C. Lay-up period
D. Escape of pollutants - correct answer -C. Lay-up period
Which one of the following is true regarding the differences
between traditional and Roth IRAs?
A. Eligibility for Roth IRAs apply only to those under 70 1/2 years
old while there are no age restrictions for traditional IRAs.
B. A $5,000 annual contribution limit applies to all owners of Roth
IRAs while the annual contribution limit for traditional IRAs varies
based on age.
C. The funds in a Roth IRAs accrue on a tax-free basis, while the
funds in a traditional IRA accrue on a tax-deferred basis.
D. Withdrawals from Roth IRAs are subject to a penalty they start
after the owner is 70 1/2 years old while no such penalty applies
to traditional IRAs. - correct answer -C. The funds in a Roth IRAs
accrue on a tax-free basis, while the funds in a traditional IRA
accrue on a tax-deferred basis.
CPCU 553 FINAL BRAND NEW OFFICIAL
QUESTIONS WITH ANSWERS.
Detached structures are covered under
A. Homeowners policies, but not under dwelling policies.
B. Coverage B of the DP-3 policy.
C. Coverage C of the DP-3 policy.
D. Coverage A of the DP-3 policy. - correct answer -B. Coverage
B of the DP-3 policy.
John's house is insured under a DP-3 policy with a Coverage A
limit of $100,000. John temporarily repairs a roof that is damaged
in a hurricane until he can have the roof replaced. How much, if
any, is available in addition to the $100,000 Coverage A limit
under the policy to pay for the temporary repairs?
A. $0
B. $1,000
C. $5,000
D. $10,000 - correct answer -A. $0
Which one of the following is true regarding ISO's Mobilehome
Endorsement (MH 04 01) when attached to a homeowners form?
, Page | 2
A. It provides a minimum limit under Coverage B—Other
Structures—of $1,000.
C. It broadens the liability coverage.
D. It removes coverage for "ordinance or law". - correct answer -
D. It removes coverage for "ordinance or law".
For an urban area subject to riot and civil commotion, the
operators of a group that jointly underwrite and share the risks
and profits of property insurance in that area are known as
A. A FAIR plan.
B. A syndicate.
C. A citizens property insurance corporation.
D. A beachfront and windstorm plan. - correct answer -B. A
syndicate.
Jennifer owns a valuable stamp collection, and her insurer
refuses to provide the required amount of coverage by
endorsement to her homeowners policy. Which one of the
following types of personal inland marine coverage forms should
Jennifer use to cover her stamp collection for its full value on a
scheduled basis?
A. Personal Effects Form
B. Personal Property Form
C. Personal Articles Standard Loss Settlement Form
, Page | 3
D. Floating Property Form - correct answer -C. Personal Articles
Standard Loss Settlement Form
Which one of the following is a warranty commonly applied to
personal watercraft insurance?
A. Mechanical breakdown
B. Uninsured boaters
C. Lay-up period
D. Escape of pollutants - correct answer -C. Lay-up period
Which one of the following is true regarding the differences
between traditional and Roth IRAs?
A. Eligibility for Roth IRAs apply only to those under 70 1/2 years
old while there are no age restrictions for traditional IRAs.
B. A $5,000 annual contribution limit applies to all owners of Roth
IRAs while the annual contribution limit for traditional IRAs varies
based on age.
C. The funds in a Roth IRAs accrue on a tax-free basis, while the
funds in a traditional IRA accrue on a tax-deferred basis.
D. Withdrawals from Roth IRAs are subject to a penalty they start
after the owner is 70 1/2 years old while no such penalty applies
to traditional IRAs. - correct answer -C. The funds in a Roth IRAs
accrue on a tax-free basis, while the funds in a traditional IRA
accrue on a tax-deferred basis.
