AINS 102 CH 4 QUESTIONS AND
SOLVED ANSWERS
Marcus is buying insurance for his recent home purchase that will be covered by a
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
DP-
3 policy. In reading his policy, which one of the following will Marcus find is true?
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Select one: sw
A. The DP-
sw sw
3 excludes coverage for theft of property that isn't part of the covered structure.
sw sw sw sw sw sw sw sw sw sw sw sw sw
B. The DP-3 provides named perils coverage for the dwelling and personal property.
sw sw sw sw sw sw sw sw sw sw sw sw
C. Marcus needs to add an endorsement to the DP-
sw sw sw sw sw sw sw sw sw
3 to cover personal property damage.
sw sw sw sw sw
D. Marcus wants to add a theft endorsement to his DP-
sw sw sw sw sw sw sw sw sw sw
3 to cover personal property damage caused by burglars. - ans-A. The DP-
sw sw sw sw sw sw sw sw sw sw sw sw
3 excludes coverage for theft of property that isn't part of the covered structure.
sw sw sw sw sw sw sw sw sw sw sw sw sw
The Jordans own a small ranch, and keep several ponies on the property for their p
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ersonal use. Mr. and Mrs. Jordan are concerned that their children's friends and visit
sw sw sw sw sw sw sw sw sw sw sw sw sw
ing relatives could be injured when riding the family's ponies. What coverage would t
sw sw sw sw sw sw sw sw sw sw sw sw sw
he unendorsed DP-3 policy provide for this loss exposure?
sw sw sw sw sw sw sw sw
Select one: sw
A. No coverage
sw sw
B. Full coverage, up to the policy limits
sw sw sw sw sw sw sw
C. Medical expenses only, up to $2,000
sw sw sw sw sw sw
D. 20% of the Coverage A limit - ans-A. No coverage
sw sw sw sw sw sw sw sw sw sw
The "Write Your Own" (WYO) flood insurance program allows
sw sw sw sw sw sw sw sw
Select one: sw
A. Participating Insurers write flood insurance using National Flood Insurance Progra
sw sw sw sw sw sw sw sw sw sw
m guidelines.
sw
B. Insureds to tailor flood coverage to their own specific needs.
sw sw sw sw sw sw sw sw sw sw
C. Insureds to carry flood coverage regardless of the property's location.
sw sw sw sw sw sw sw sw sw sw
D. Insureds to purchase flood coverage without an agent or representative. - ans-
sw sw sw sw sw sw sw sw sw sw sw sw
A. Participating Insurers write flood insurance using National Flood Insurance Progra
sw sw sw sw sw sw sw sw sw sw
m guidelines.
sw
, With respect to new flood insurance policies and endorsements that increase covera
sw sw sw sw sw sw sw sw sw sw sw
ge on existing flood insurance policies, the National Flood Insurance Program (NFIP)
sw sw sw sw sw sw sw sw sw sw sw
generally requires a waiting period of
sw sw sw sw sw sw
Select one: sw
A. 14 days.
sw sw
B. 30 days.
sw sw
C. 60 days.
sw sw
D. 90 days. - ans-B. 30 days.
sw sw sw sw sw sw
The Personal Articles Standard Loss Settlement Form provides special form coverag
sw sw sw sw sw sw sw sw sw sw
e forsw
Select one: sw
A. Personal property, such as luggage, normally carried by tourists and travelers.
sw sw sw sw sw sw sw sw sw sw sw
B. Unscheduled personal property owned or used by the insured and normally kept
sw sw sw sw sw sw sw sw sw sw sw sw sw
at the insured's residence. Examples include clothing and household furniture.
sw sw sw sw sw sw sw sw sw
C. Property normally kept in personally owned watercraft but not attached to the wat
sw sw sw sw sw sw sw sw sw sw sw sw sw
ercraft.
D. Several classes of personal property with a specific amount of insurance shown f
sw sw sw sw sw sw sw sw sw sw sw sw sw
or each class of property or for each specific article. Examples include jewelry and fi
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ne arts. - ans-
sw sw sw
D. Several classes of personal property with a specific amount of insurance shown f
sw sw sw sw sw sw sw sw sw sw sw sw sw
or each class of property or for each specific article. Examples include jewelry and fi
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ne arts. sw
Which one of the following types of personal inland marine forms is designed for fre
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
quent travelers? sw
Select one: sw
A. Personal Articles Standard Loss Settlement Form
sw sw sw sw sw sw
B. Personal Effects Form
sw sw sw
C. Tenant Homeowners Form
sw sw sw
D. Personal Property Form - ans-B. Personal Effects Form
sw sw sw sw sw sw sw sw
Which one of the following can be covered for physical damage and liability coverag
sw sw sw sw sw sw sw sw sw sw sw sw sw
e by a Personal Auto Policy (PAP)?
sw sw sw sw sw sw
Select one: sw
A. Jet ski
sw sw
B. Boat under 26 feet
sw sw sw sw
C. Boat trailer
sw sw
D. Boat being transported by personal auto - ans-C. Boat trailer
sw sw sw sw sw sw sw sw sw sw
Which one of the following is a warranty that is likely to be required by an insurer th
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
at underwrites a boatowners or yacht policy?
sw sw sw sw sw sw
Select one: sw
A. Uninsured boaters
sw sw
B. Contractual liability
sw sw
C. Seaworthiness
sw
SOLVED ANSWERS
Marcus is buying insurance for his recent home purchase that will be covered by a
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
DP-
3 policy. In reading his policy, which one of the following will Marcus find is true?
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
Select one: sw
A. The DP-
sw sw
3 excludes coverage for theft of property that isn't part of the covered structure.
sw sw sw sw sw sw sw sw sw sw sw sw sw
B. The DP-3 provides named perils coverage for the dwelling and personal property.
sw sw sw sw sw sw sw sw sw sw sw sw
C. Marcus needs to add an endorsement to the DP-
sw sw sw sw sw sw sw sw sw
3 to cover personal property damage.
sw sw sw sw sw
D. Marcus wants to add a theft endorsement to his DP-
sw sw sw sw sw sw sw sw sw sw
3 to cover personal property damage caused by burglars. - ans-A. The DP-
sw sw sw sw sw sw sw sw sw sw sw sw
3 excludes coverage for theft of property that isn't part of the covered structure.
sw sw sw sw sw sw sw sw sw sw sw sw sw
The Jordans own a small ranch, and keep several ponies on the property for their p
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ersonal use. Mr. and Mrs. Jordan are concerned that their children's friends and visit
sw sw sw sw sw sw sw sw sw sw sw sw sw
ing relatives could be injured when riding the family's ponies. What coverage would t
sw sw sw sw sw sw sw sw sw sw sw sw sw
he unendorsed DP-3 policy provide for this loss exposure?
sw sw sw sw sw sw sw sw
Select one: sw
A. No coverage
sw sw
B. Full coverage, up to the policy limits
sw sw sw sw sw sw sw
C. Medical expenses only, up to $2,000
sw sw sw sw sw sw
D. 20% of the Coverage A limit - ans-A. No coverage
sw sw sw sw sw sw sw sw sw sw
The "Write Your Own" (WYO) flood insurance program allows
sw sw sw sw sw sw sw sw
Select one: sw
A. Participating Insurers write flood insurance using National Flood Insurance Progra
sw sw sw sw sw sw sw sw sw sw
m guidelines.
sw
B. Insureds to tailor flood coverage to their own specific needs.
sw sw sw sw sw sw sw sw sw sw
C. Insureds to carry flood coverage regardless of the property's location.
sw sw sw sw sw sw sw sw sw sw
D. Insureds to purchase flood coverage without an agent or representative. - ans-
sw sw sw sw sw sw sw sw sw sw sw sw
A. Participating Insurers write flood insurance using National Flood Insurance Progra
sw sw sw sw sw sw sw sw sw sw
m guidelines.
sw
, With respect to new flood insurance policies and endorsements that increase covera
sw sw sw sw sw sw sw sw sw sw sw
ge on existing flood insurance policies, the National Flood Insurance Program (NFIP)
sw sw sw sw sw sw sw sw sw sw sw
generally requires a waiting period of
sw sw sw sw sw sw
Select one: sw
A. 14 days.
sw sw
B. 30 days.
sw sw
C. 60 days.
sw sw
D. 90 days. - ans-B. 30 days.
sw sw sw sw sw sw
The Personal Articles Standard Loss Settlement Form provides special form coverag
sw sw sw sw sw sw sw sw sw sw
e forsw
Select one: sw
A. Personal property, such as luggage, normally carried by tourists and travelers.
sw sw sw sw sw sw sw sw sw sw sw
B. Unscheduled personal property owned or used by the insured and normally kept
sw sw sw sw sw sw sw sw sw sw sw sw sw
at the insured's residence. Examples include clothing and household furniture.
sw sw sw sw sw sw sw sw sw
C. Property normally kept in personally owned watercraft but not attached to the wat
sw sw sw sw sw sw sw sw sw sw sw sw sw
ercraft.
D. Several classes of personal property with a specific amount of insurance shown f
sw sw sw sw sw sw sw sw sw sw sw sw sw
or each class of property or for each specific article. Examples include jewelry and fi
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ne arts. - ans-
sw sw sw
D. Several classes of personal property with a specific amount of insurance shown f
sw sw sw sw sw sw sw sw sw sw sw sw sw
or each class of property or for each specific article. Examples include jewelry and fi
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
ne arts. sw
Which one of the following types of personal inland marine forms is designed for fre
sw sw sw sw sw sw sw sw sw sw sw sw sw sw
quent travelers? sw
Select one: sw
A. Personal Articles Standard Loss Settlement Form
sw sw sw sw sw sw
B. Personal Effects Form
sw sw sw
C. Tenant Homeowners Form
sw sw sw
D. Personal Property Form - ans-B. Personal Effects Form
sw sw sw sw sw sw sw sw
Which one of the following can be covered for physical damage and liability coverag
sw sw sw sw sw sw sw sw sw sw sw sw sw
e by a Personal Auto Policy (PAP)?
sw sw sw sw sw sw
Select one: sw
A. Jet ski
sw sw
B. Boat under 26 feet
sw sw sw sw
C. Boat trailer
sw sw
D. Boat being transported by personal auto - ans-C. Boat trailer
sw sw sw sw sw sw sw sw sw sw
Which one of the following is a warranty that is likely to be required by an insurer th
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
at underwrites a boatowners or yacht policy?
sw sw sw sw sw sw
Select one: sw
A. Uninsured boaters
sw sw
B. Contractual liability
sw sw
C. Seaworthiness
sw
