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Chapter 3: Types of Property Policies Questions
with Detailed Verified Answers
When a regular bill of lading is issued, who will be responsible for the invoice cost of
any damaged property?
A The person to whom the goods are being shipped
B The shipper
C The driver of the truck
D The carrier
Ans: D The carrier
When a regular bill of lading is issued, the carrier will be responsible for the invoice
cost of any damaged property, and the shipper does not have to specifically declare a
value.
Which inland marine form would provide the best protection for a dry cleaning
company against loss or damage to their customer's property while in the care,
custody, and control of the dry cleaners?
A Furriers block policy
B Personal property coverage part
C Vendor's single interest policy
D Bailee's customer policy
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Ans: D Bailee's customer policy
A bailee's policy does not cover property of the insured, but does cover their
customer's property while in the care of the insured.
Coverage under the builders risk form will end in all of the following situations
EXCEPT
A The insured has sold the property.
B 60 days after the construction has ended.
C Construction has been abandoned.
D 60 days after the building became occupied.
Ans: B 60 days after the construction has ended.
Coverage under the builders risk form ends if it is abandoned without any plans to
complete it or if the insured's interest in the property ceases, or 60 days after the
building is occupied, or 90 days after construction is completed.
Which of the following is NOT found in a commercial package policy?
A Certificate of authority
B Common policy conditions
C Common policy declarations
D Interline endorsements
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Ans: A Certificate of authority
Regardless of how the policy is written, it will be comprised of the following essential
elements: common policy declarations page, common policy conditions, interline
endorsements, and coverage parts.
The mobilehome endorsement alters the homeowners policy to cover a mobilehome
and other structures on land
A Leased by the owner of the land.
B Owned or leased by the resident of the mobilehome.
C Owned or leased by a landlord who does not reside on the premises.
D Owned by a landlord who does not use the mobilehome located on it.
Ans: B Owned or leased by the resident of the mobilehome.
The mobilehome endorsement alters the homeowners policy to cover a mobilehome
and other structures on land owned or leased by the resident of the mobilehome.
Under the additional living expenses coverage, if a civil authority prohibits the insured
from using the dwelling because of direct damage to a neighboring location from a peril
covered in the insured's policy, loss would be covered for up to
A 1 month.
B 90 days.
C 1 week.
D 2 weeks
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Ans: D 2 weeks
A dwelling policy will pay loss of use due to civil authority for a maximum of two
weeks.
In a commercial package policy, who may cancel the policy in writing and make
changes to the policy with the consent of the insurer?
A Insurer
B First named insured
C Last named insured
D Beneficiary
Ans: B First named insured
Some commercial policies may have more than one named insured. Complications and
confusion over contractual duties are reduced by making the insurer and the first
named insured the primary parties for carrying out responsibilities.
To be eligible for businessowners policy (BOP) coverage, an office building CANNOT
be higher than
A 2 stories.
B 3 stories.
C 6 stories.
D 10 stories.
© Get it right 2025 Getaway - Stuvia US All rights reserved
Chapter 3: Types of Property Policies Questions
with Detailed Verified Answers
When a regular bill of lading is issued, who will be responsible for the invoice cost of
any damaged property?
A The person to whom the goods are being shipped
B The shipper
C The driver of the truck
D The carrier
Ans: D The carrier
When a regular bill of lading is issued, the carrier will be responsible for the invoice
cost of any damaged property, and the shipper does not have to specifically declare a
value.
Which inland marine form would provide the best protection for a dry cleaning
company against loss or damage to their customer's property while in the care,
custody, and control of the dry cleaners?
A Furriers block policy
B Personal property coverage part
C Vendor's single interest policy
D Bailee's customer policy
© Get it right 2025 Getaway - Stuvia US All rights reserved
,Click here for more: Scholars nexus
Ans: D Bailee's customer policy
A bailee's policy does not cover property of the insured, but does cover their
customer's property while in the care of the insured.
Coverage under the builders risk form will end in all of the following situations
EXCEPT
A The insured has sold the property.
B 60 days after the construction has ended.
C Construction has been abandoned.
D 60 days after the building became occupied.
Ans: B 60 days after the construction has ended.
Coverage under the builders risk form ends if it is abandoned without any plans to
complete it or if the insured's interest in the property ceases, or 60 days after the
building is occupied, or 90 days after construction is completed.
Which of the following is NOT found in a commercial package policy?
A Certificate of authority
B Common policy conditions
C Common policy declarations
D Interline endorsements
© Get it right 2025 Getaway - Stuvia US All rights reserved
,Click here for more: Scholars nexus
Ans: A Certificate of authority
Regardless of how the policy is written, it will be comprised of the following essential
elements: common policy declarations page, common policy conditions, interline
endorsements, and coverage parts.
The mobilehome endorsement alters the homeowners policy to cover a mobilehome
and other structures on land
A Leased by the owner of the land.
B Owned or leased by the resident of the mobilehome.
C Owned or leased by a landlord who does not reside on the premises.
D Owned by a landlord who does not use the mobilehome located on it.
Ans: B Owned or leased by the resident of the mobilehome.
The mobilehome endorsement alters the homeowners policy to cover a mobilehome
and other structures on land owned or leased by the resident of the mobilehome.
Under the additional living expenses coverage, if a civil authority prohibits the insured
from using the dwelling because of direct damage to a neighboring location from a peril
covered in the insured's policy, loss would be covered for up to
A 1 month.
B 90 days.
C 1 week.
D 2 weeks
© Get it right 2025 Getaway - Stuvia US All rights reserved
, Click here for more: Scholars nexus
Ans: D 2 weeks
A dwelling policy will pay loss of use due to civil authority for a maximum of two
weeks.
In a commercial package policy, who may cancel the policy in writing and make
changes to the policy with the consent of the insurer?
A Insurer
B First named insured
C Last named insured
D Beneficiary
Ans: B First named insured
Some commercial policies may have more than one named insured. Complications and
confusion over contractual duties are reduced by making the insurer and the first
named insured the primary parties for carrying out responsibilities.
To be eligible for businessowners policy (BOP) coverage, an office building CANNOT
be higher than
A 2 stories.
B 3 stories.
C 6 stories.
D 10 stories.
© Get it right 2025 Getaway - Stuvia US All rights reserved
