Tiffany gives piano lessons to several young students who come to her home afterschool. Which homeowners endorsement provides property and liability coverage for this business exposure?

• home day care coverage endoresment

• scheduled personal property endoresment

• professional liability endoresment

• permitted incidental occupancies endorsement

A newly elected county treasurer, Reid is required to post a public officials bond that guarantees:

• Reid's campaign contributions have been audited

• the surety issuing the bond will immediately pay losses that result from reid's dishonesty

• Reid is financially able to pay the bond premium

• Reid will be required to pay any losses for which he or she is responsible

After being assigned a claim, an adjuster typically completes the initial investigation of the claim within how many days?

• 10

• 5

• 30

• 15

Which form(s) value dwelling buildings on the basis of actual cash value?

• DP1 and 2

• DP2

• DP1

• DP 2 and 3

Insurance companies generally refuse to issue policies to cover losses that are:

• purely accidental

• potentially catastrophic

• greater than a certain value

• easily measured

Jewell is building a vacation cottage. her dwelling policy has a dwelling under construction endorsement and Coverage A limit of $100,000. A windstorm destroys the house after it is half completed. What is the most that Jewell can recover.

• $104.000

• $50,000

• $102,000

• $100,000

More than half of Darryl's home suffers tornado damage. Because the home did not comply with current building codes, Darryl must tear down the undamaged portion and rebuild it with more expensive components. The ordinance or law additional coverage in his HO 3 policy will not cover:

• cost of demolishing the undamaged portion of his home

• costs of removing demolition debris

• replacement cost of repairing the damaged portion of the home

• extra cost of more expensive, code compliant building components

Ken's house has an exterior layer of brick that covers wooden walls supported by wooden 2x4 studs. What type of construction does Ken's house have?

• masonry

• frame

• masonry veneer

• fire resistive

Paving contractor has a contractors' equipment floater that covers its paver and otehr scheduled equipment. If the paver is totally destroyed by a covered peril during the term policy, what will the insurer do?

• decline the claim and refund the entire premium on the paver

• pay the claim and cancel the Paving Contractor's policy

• pay the claim and refund the unearned premium on the paver

• pay the claim but make no refund of premium

Arnold's Auto Repair Shop's garage policy does NOT cover it for loss sustained by a vehicle that it:

• owns

• is painting for a customer

• is selling to a customer

• hires