DeanBeaver3042
32) Which of the following statements about “replacement cost”…
32) Which of the following statements about “replacement cost” under Coverages A and B is not accurate?
A) Replacement cost almost a lways equals market value of real property.
B) Replacement cost means obtaining the actual dollars needed to replace destroyed or damaged property
C) Personal property is not covered under a replacement cost basis
D) In order to qualify for replacement cost coverage, the insured isrequired to maintain no less 80% insurance on the subject property relative to the cost of replacing the building.
33) Which of the following represents an accurate personal property normal limit (minimum) under Coverage C?
A) A cemetery headstone
@ $2,000.
B) A boat @ $1,000.
C) Business property used away from the premises @ $500.
D) Cash at $1,000
34) An insured owns an H0-8 contract with a dwelling coverage amount of $140,000. Landscape coverage will equal to which of the following amounts?
A) $14,000, but no more than $250 per plant.
B) $14,000, but no more than $500 per plant.
C) $ 7,000, but no more than $250 per plant.
D) $ 7,000, but no more than $500 per plant.
35) In the event of loss, the insured would be required to perform all of the following duties, except:
A) provide immediate notice to the company.
B) enter a burning building to protect personal property from further loss.
C) help determine the loss by separating property which is ruined from property which is undamaged
. D) inventory the loss which has occurred
36) Which of the following statement pertaining to the cancellation of a homeowners contract is/are true?
I) When the insured cancels, at least 10 days’ notice must be given to the company.
II) State law notwithstanding, the insured who cancels is always entitled to a pro rate refund.
III) The insurance company can cancel a contract on an immediate basis via telegram to the first named insured as it appears in the policy declarations.
A) I only B) II only C) III only D) Neither I, II nor III
37) The homeowner contract provision dealing with theft requires
A) the company to pay even if the insured committed the actual theft of their own property.
B) the same coverage regardless of the homeowner form.
C) that even attempted theft which results in loss is covered, unless otherwise excluded.
D) the insured to prove a loss was actually caused by theft.
38) An H0-3 Form will cover, some or all, of which of the following causes of loss?
A) The insured drives their vehicle into the dwelling, causing extensive damage.
B) The insured’s large dog destroys the walls of the master bedroom.
C) Termites that cause extensive damage to the wooden structural support of the dwelling.
D) Settling of the foundation of the house which cracks the concrete basement floor.
39) Concurrent causation generally means
A) when two or more perils happen simultaneously, coverage for any resulting loss is excluded.
B) HO-I and H0-2 contracts exclude unusual weather related loses.
C) direct loss by weather is a special exclusion under an H0-3.
D) None of the above 8 O
40) Under a Homeowners Form H0-15, all of the following statements are accurate, except:
A) it is added to a Form H0-3 to provide named perils coverage to contents.
B) it replaces the H0-5 Form from earlier contract language.
C) a marble statue would be covered for breakage if loss was caused by a specifically named peril.
D) theft by the insured is covered.
41) Dwelling forms and homeowners forms are similar in nature, except dwelling forms do not cover
A) theft
B) personal liability
C) money
D) all of the above
42) The Dwelling coverages called basic and broad form have all of the following coverage in common except
A) lightening
B) fire
C) landscape
D) internal explosion
43) An All Risk policy
A) excludes loss caused by deterioration.
B) is the same as a named peril contract.
C) is not open peril coverage.
D) covers contents on a all risk basis.
44) Which of the following statements concerning Mobile Home insurance is/are accurate?
I) Coverage is always written on an actual cash value basis because mobile homes are looked upon as a depreciable asset.
II) To obtain the best possible coverage, the mobile home must be at least 10 feet by 40 feet and be designed for year around living.
Ill) Personal property coverage is less than what is found in a standard h o m e o w n e r p o l i c y .
A) I and II only
B) I only
C) III only
D) II and III only
45) All of the following statements about flood insurance are true, except:
A) flood insurance can be purchased from private insurance companies.
B) subsidized coverage on a single family dwelling in the emergency program is $35,000
C) if property is purchased in a special flood hazard area, purchase of flood insurance is optional.
D) the nonresidential contents limit is $100,000.
46) All of the following contents are excluded under a residential flood insurance policy, except:
A) tenant improvements up to 10% of the contents coverage amount.
B) business property
C) valuable papers
D) fish
47) The Fine Arts floater covers which of the following causes of loss?
A) Damage done by deterioration.
B) Loss caused by rats.
C) Loss directly caused by earthquake.
D) Damage done during a repair or restoration process.
48) Section II of a Watercraft policy excludes all of the following loses except:
A) when the insured runs a boat over a swimmer with the intent of injuring the swimmer.
B) liability caused while the boat owner is operating a boat repair shop.
C) liability coverage to a friend who took the boat onto the water without asking the owner’s permission to do so.
D) a family member of the named insured who accidentally runs the boat into a water skier.
49) The best manner in which to purchase coverage on a dwelling is to base the coverage amount on
A) what the insurance agent advises
B) replacement cost
C) on market value
D) on outstanding principal loan balance
