Unit 10-Miscellaneous Personal Insurance

Which of the following is TRUE concerning flood insurance?

• It is marketed to the public by both the federal government and by private insurance companies

• both the federal government and private companies retain part of the risk

• private insurance companies market the policies and the federal government retain 100% of the risk

• the federal government markets the policies and private companies retain 100% if the risk

Which of the following are elements of the National Flood Insurance Program?

I Risk retention II Flood prevention

• I only

• II only

• Both I and II

• None

Which of the following is/are eligible for flood coverage?

I Residential dwellings

II Commercial buildings

III Contents of insured buildings

• I and II

• II and III

• I and III

• I, II and III

In a regular Flood Policy, which of the following is the standard deductible?

• $100

• $250

• $500

• $1,000

A flood policy goes into effect at which of the following times?

• when the agent binds the coverage

• upon the date of the application

• thirty days after the application

• ten days after the date of the application

Which statement best describes the FAIR plan?

• cannot be used for property that is located in environmentally hazardous areas

• not sold in Kentucky or Indiana

• used when an insured cannot get property insurance in the open market

• FAIR stands for Fair Access to Insurance Rates

Which Personal Inland Marine form would best cover property while on vacation in Flordia?

• personal articles form

• personal property form

• personal effects form

• none of them would provide coverage

Which Personal Inland Marine form provides open peril coverage on a blanket basis for most kinds of personal property found in a typical home?

• personal articles form

• personal property form

• personal effect form

• none

Which Personal Inland Marine form covers the same type of property as the scheduled personal property endorsement?

• personal articles form

• personal property form

• personal effects form

• none

The insured is liable for $135,000 in bodily injury loss to his neighbor. The insured homeowners policy has a limit of $100,000 per occurrence and an Umbrella liability policy with limits of $1,000,000 and a $3,000 retention limit. The homeowner's policy excludes the loss but the umbrella policy covers the loss. How much will the Umbrella policy pay for this loss

• $32,000

• $100,000

• $132,000

• $135,000