State Farm License - Homeowner and Auto policies Exam Questions With 100% Correct Answers

State Farm License - Homeowner and Auto policies Exam Questions With 100% Correct Answers What are the parts and sections in HP policy? Section I: Property Coverages Coverage A - Dwelling Coverage B - Other structures Coverage C - Personal Property Coverage D - Loss of Use Deductible: at least $250 Section II: Liability Coverages Coverage E - Personal Liability Coverage F - Medical Payment to Others No Deductible name insured person named on the Dec page and their spouse, if a resident of the same household insured you and residents of your households who live with you, including children under 24 who are away at school and other person under the age 21 who are in your care Residence premises up to 4 families dwelling plus other building and the ground where you reside. Shown in Dec Page. Describe the Property coverage section on HO section 1 - All property coverages on HO policy (Coverage A, B, C, and D) are stacked on an HO policy, meaning that each coverage is added to the other policy. - The policy amount is stated as the coverage A dwelling limit and coverage B,C, D are IN ADDITION to that. - The premium is calculated on the coverage A limit. All the other coverages are automatically stated at a fixed percentage of Coverage A, whether the client need that amount or not. - These percentage are: Coverage B - other structure is 10% of coverage A Coverage C - personal property - 50% of coverage A Coverage D - loss of use - is 30% of coverage D IF Coverage A covers $100,000 and we take into consideration of Coverage B,C, D, total section I coverage will be 190,000 Coverage B - Other structures - cover other structures that is detached from the dwelling, such as fence or utility line. - Business and farm structures are not covered!! Coverage C - Personal Property - covers personal property owned or used by an insured while it is ANYWHERE IN THE WORLD. - at the option of the insured, property of others on the residence premises, including that owned by a guest or resident employee, is also covered. Off - premises Personal Property Coverage - Personal Property located away from the residence premises will be covered up to 10% of the limit for Coverage C. - If the personal property is moved to a newly acquired Principle Residence, this limitation will not be applied for the first 30 days. Special Limits of Liability - Although Coverage C has a limit of $50,000 on premises (for example), the HO policies contain Special Limit of Liability for certain types of Personal Property. - this apply to all HO policies. - If your client exceed the Special Limits, you should recommend them Special Coverage, such as PAF or personal Articles Floater. - If you client loss was not properly covered, it could result in Errors and Omissions Liability. What are the types of property that are NOT covered on HO? 1. Animals 2. Motor vehicles other than those used to service the premises or designed to assist the handicapped (ex: actual motorcycle instead of a grass mower) 3. Aircraft 4. property of roomers. what are the Additional Coverages on the HO policies? 1. Debris Removal: pays for removing debris after a covered Peril Damages. This expense include in the policy limit (not an additional coverage) unless the amount to be paid for the loss plus the Debris Removal totals more than the policy policy limits. Then there will be an additional 5% of Coverage A limit available. 2. Credit Card and Forgery: cover up to $500 in addition to limits and w/o deductibles 3. Trees, Shrubs, and plants: up to 5% of Coverage A, but not more than $500 per tree, shrub, or plant. This is addition to limits. 4. Fire Department Service Charge : pays up to $500 for liability for the Fire department charges incurred when the Fire Department is called to save or protect the property. An additional to limits and no deductible. 5. Ordinance or Law: up to 10% of coverage A limit as additional insurance for the increased cost incurred due to the enforcement of any ordinance or law. 6. Glass breakage: cover for breakage of glass, unless the dwelling has been vacant for more than 60 consecutive days immediately before the loss. 7. Grave Markers: up to $5000 for grave markers on or away from the residence premises for loss caused by a Peril Insured Against under Coverage C What are the two coverages in section II of liability coverages? what is the function of liability coverage generally? 1. Coverage E - Personal Liability: written at least $100,000 2. Coverage F - Medical Payment to Others: written at least $1,000 - This coverage cover in the event of someone else in injured (BI) or his property is