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WorksheetsChapter 7 Quiz
Total questions: 28
Worksheet time: 14mins
The homeowners policy provides property and liability coverage in a single policy. For this reason it is called
a double line policy
a monoline policy
a multiline policy
a modified policy
Under the cancellation condition, during the first 60 days of a policy term the insurance company can cancel for any reason as long as they give the insured
5 days' written notice
10 days' written notice
30 days' written notice
45 days' written notice
Which homeowners form insured tenants in a rental property?
HO-1
HO-2
HO-3
HO-4
Which of the following theft losses would be completely covered if the loss were for the full value of the property described?
$300 worth of coins from the insured's coin collection
A $3,000 laptop computer that is used in the insured's accounting business
A $2,000 silver set
A $5,000 diamond ring
Which of the following is NOT specifically excluded from coverage in Coverage C of the homeowners policy?
animals
credit cards
motorized vehicles
property of a guest
Which of the following coverage limits does not have special theft only limits?
money
jewelry
silverware
firearms
Which of the following perils is NOT included in the basic form perils?
theft
volcanic eruption
smoke
accidental discharge of water
Broad peril coverages include all basic perils and all of the following EXCEPT
falling objects
flooding and overflow from a sump pump
weight of ice
freezing of plumbing
Which of the following is not an additional coverage included in all homeowners forms?
debris removal
reasonable repairs
tree, shrubs, and other plants
building additions and alterations
David's roof was damaged on his garage when a tree fell during a thunderstorm. He removed his property from the garage to a storage facility to protect it from getting destroyed. This property, although off the premises, will be covered for
15 days
30 days
45 days
90 days
For all forms except HO-4 and HO-6, the primary amount of insurance is
Coverage A
Coverage B
Coverage C
Coverage D
Losses to personal property, awnings, carpeting, appliances, outdoor antennas, outdoor equipment, and structures that are not building are paid at
replacement cost
actual cash value
depreciation rate
limits of insurance
Which of the following is NOT one of the 9 major categories of valuable property used in the scheduled personal property endorsement?
musical instruments
golfer's equipment
antique car collection
postage stamps
Which of the following covers damages that the insured is legally obligated to pay because of bodily injury or property damage?
Coverage B
Coverage C
Coverage D
Coverage E
All of the following statements about Section II of the homeowners policy are correct EXCEPT
the base personal liability limit for any one occurrence is $250,000
Section II is the same in all homeowners policies
Coverage F pays all necessary medical expenses incurred within 3 years of an accident
Coverage E and Coverage F are the 2 major coverages in Section II
Which of the following is excluded under Coverages E and F?
a 30 horsepower outboard watercraft
a 20 foot sailing vessel
a boat on land in storage
a non-owned boat
Damage to property of others is an additional coverage that pays up to how much for property damaged or destroyed by the insured?
$2,500 per occurrence
$2,000 per occurrence
$1,500 per occurrence
$1,000 per occurrence
Which of the following liability endorsements provides coverage for libel, slander, false arrest, invasion of privacy, and malicious prosecution?
business pursuits endorsement
personal injury endorsement
permitted incidental endorsement
bodily injury endorsement
Thomas wants the maximum comprehensive protection for his home and personal property. Which homeowners policy should he purchase?
HO-1
HO-2
HO-5
HO-8
Which of the following perils is covered in all homeowners forms?
freezing of pipes
weight of ice, snow, or sleet
falling objects
smoke
Under the homeowners policy, which of the following classes of personal property have special limits for theft losses, but not for any other types of losses?
money
firearms
watercraft
property used for business purposes
Except for the HO-8, under an unendorsed homeowners policy, losses to the dwelling and other structures are paid on
a replacement cost basis
a repair cost basis
a depreciation basis
an actual cash value basis
Which of the following would not be covered under Coverage A or Coverage B of the homeowners policy?
A barn rented to a neighbor for a retail craft store
An insured's gardening storage shed
A stack of lumber at the edge of the insured's property that will be used to build a storage shed
The insured's home
All of the following classes of personal property are specifically excluded from homeowners coverage EXCEPT
animals
clothing
property of boarders
credit cards
Under an unendorsed HO-3, losses to personal property are paid on
a replacement cost
the repair cost
the depreciation
an actual cash value
Which of the following losses is NOT excluded in all homeowners forms?
Earthquake damage to a home
Flood damage to a home
Accidental and sudden discharge of water from a plumbing system
An area power failure that shuts down power for 12 hours and causes the insured's food to spoil in a refrigerator
What is the standard liability limit for Coverage E?
$100,000 aggregate
$100,000 per occurrence
$100,000 lifetime limit
$250,000 per occurrence
Which of the following statements is NOT correct regarding the eligibility of insureds under a homeowners policy?
The named insured must be the owner-occupant of the dwelling or a renter who maintains a residential occupancy
The dwelling must be primarily used as a residence
Dwellings under construction are eligible
The home cannot contain more than 2 families
