final property exam

FINAL PROPERTY EXAM 2024 WITH 100% CORRECT ANSWERS Which of the following best defines the term risk? a. Causes a loss b. Brings loss about c. Increases chances of a loss d. Uncertainty of loss - correct answer d. Uncertainty of loss An owner-occupied home has a replacement cost of $500,000 and an actual cash value of $400,000. To assure that the replacement cost provision in the policy applies, what is the minimum the home must be insured for? a. 75% of the RC b. $320,000 c. 75% of the ACV d. $400,000 - correct answer d. $400,000 You have a car accident and you and the insurance company disagree as to the amount of the loss, you have a right to use which of the following clauses under your policy? a. Appraisal b. Pro-rata liability c. Subrogation d. Proof of loss - correct answer a. Appraisal Under your liability section of your homeowner's policy, all of the following losses would be covered except...: a. Your dog bites the mailman b. A friend falls in your shower and sues you for a broken back c. Your son falls down your stairs d. A child crawls under your fence, falls into your in-ground pool and is injured - correct answer c. Your son falls down your stairs All of the following items can be found on a Declaration Page except a. Name of insured b. Perils covered c. Location of property insured d. Name of mortgagee - correct answer b. Perils covered All of the following terms support the concept of indemnity except... a. Subrogation b. ACV c. Replacement cost d. Insurable interest - correct answer c. Replacement cost A Scheduled Personal Property Floater offers all of the following unique benefits to the policyholder except... a. property is insured for "all risks" b. policy has "world-wide" coverage c. no deductible applies d. no dollar amount needs to be listed - correct answer d. no dollar amount needs to be listed Your owner-occupied home is insured for $500,000 under an HO-3. A fire totally destroys your property. At the time of the loss the insurance company determines the value of your property to be $150,000. This is an example of... a. physical hazard b. morale hazard c. moral hazard d. legal hazard - correct answer c. moral hazard Using the above scenario, how much will the insurance company pay? a. $150,000 b. nothing, you breached the contract by tremendously over insuring c. $500,000 d. 80% of $500,000 - correct answer c. $500,000 All of the following describe the DP-1 except... a. contains the fewest perils b. provides coverage for all types of loss to property c. provides coverage for fire losses - correct answer b. provides coverage for all types of loss to property The weather person reports that the Wisconsin River is going to crest within the next three days. You decide its time to pick up that Flood Insurance your agent has been telling you about, however, your Flood Policy contains a waiting period of _________ from the date of postmark or digital submission. a. 7 days b. 21 days c. 5 days d. 30 days - correct answer d. 30 days All earthquake shocks and volcanic eruptions, on commercial property, done within ____________ are considered a single occurrence. a. 21 days b. 7 days c. 14 days d. 168 hours - correct answer d. 168 hours The amount a property is insured for is listed where? a. Declarations b. Conditions c. Insuring agreement d. Listed values - correct answer a. Declarations Which of the following is eligible for coverage under a Mobile Home Policy? A