Question 1

The basic purpose of FAIR plans is to provide

Accepted Answer

A)   property insurance to persons who cannot obtain it in normal markets.
B)   automobile insurance to persons who cannot obtain it in normal markets.
C)   health insurance to persons who cannot afford it in normal markets.
D)   workers compensation insurance to employers who do business in several states.E) A) and B)
F) A) and C)

Question 2

Which of the following statements is (are)  true with regard to an unendorsed ISO Dwelling Form?
I.The Dwelling forms provide theft coverage and personal liability insurance.
II.The Dwelling 3 form provides broader property coverage than the Dwelling 1 form.

Accepted Answer

A)   I only
B)   II only
C)   both I and II
D)   neither I nor IIE) B) and C)
F) A) and B)

Question 3

Which of the following statements about the eligibility requirements for insuring mobile homes by endorsing a homeowners policy is (are)  true?
I.The mobile home must be designed for year-round living.
II.The mobile home must be located in a fenced area with security guards.

Accepted Answer

A)   I only
B)   II only
C)   both I and II
D)   neither I nor IIE) B) and C)
F) A) and D)

Question 4

Which of the following statements about mobile home insurance under the ISO program is true?

Accepted Answer

A)   The mobile home is insured on a replacement cost basis, but actual cash value coverage can be added by endorsement if it is more appropriate.
B)   There is no coverage available for "other structures."
C)   Built-in, permanently attached furniture is considered personal property.
D)   Personal liability insurance is not part of the coverage available to mobile home owners.E) A) and B)
F) A) and C)

Question 5

Which statement is true about medical expense coverage under the boatowners package policy?

Accepted Answer

A)   It pays the medical expenses of a covered person who is injured while in the boat.
B)   It pays the medical expenses of another boat operator who is injured as a result of negligent operation of the boat by the insured.
C)   It pays the medical expenses of a swimmer or a water skier being towed by another boat if he or she is hit by the insured's boat.
D)   It pays the medical expenses of someone on a dock or pier if the insured's boat hits the dock or pier and injures him or her.E) A) and B)
F) B) and D)

Question 6

Which of the following statements about Dwelling Property 1 (basic form)  is true?

Accepted Answer

A)   Coverage on the dwelling is written on a replacement cost basis.
B)   The full amount of personal property coverage applies to property away from the insured premises.
C)   Coverage for fair rental value of the dwelling is subject to both an overall maximum and a monthly maximum.
D)   "Open-perils" (all risks)  coverage is automatically provided for both the dwelling and personal property.E) A) and B)
F) B) and D) C

Question 7

Which of the following statements is (are)  true about the National Flood Insurance Program?
I.You can't purchase flood insurance through this program if your property is located in a high-flood-risk area.
II.Coverage is not available for any property which has been flooded previously.

Accepted Answer

A)   I only
B)   II only
C)   both I and II
D)   neither I nor IIE) B) and D)
F) C) and D)

Question 8

Which of the following statements about coverage under the federal flood insurance program is (are)  true?
I.Subsidized coverage is available for contents, but not for dwellings.
II.A $10,000 deductible applies to each loss.

Accepted Answer

A)   I only
B)   II only
C)   both I and II
D)   neither I nor IIE) None of the above
F) B) and D)

Question 9

Which of the following statements about various coverages under a Personal Articles Floater is (are)  true?
I.Each item of jewelry is described and is insured for a specified amount.
II.Stamp and coin collections can be insured on a blanket basis.

Accepted Answer

A)   I only
B)   II only
C)   both I and II
D)   neither I nor IIE) A) and B)
F) All of the above

Question 10

All of the following statements about yacht insurance are true EXCEPT

Accepted Answer

A)   Property damage coverage includes damage from insects, weathering, and wear and tear.
B)   Liability coverage includes the cost of raising, removing, or destroying a sunken or wrecked yacht.
C)   Coverage can be added for maritime workers covered by the United States Longshoremen and Harbor Workers Compensation Act.
D)   Medical payments coverage pays for medical expenses because of accidental bodily injury.E) C) and D)
F) All of the above

Question 11

All of the following are commonly excluded by personal umbrella policies EXCEPT

Accepted Answer

A)   acts committed with the intent to cause bodily injury or property damage.
B)   professional liability.
C)   aircraft liability.
D)   libel, slander, and other types of personal injury.E) None of the above
F) A) and B)

Question 12

Which of the following is a characteristic of most inland marine floater policies?

Accepted Answer

A)   The insurance can be tailored to the specific type of personal property insured.
B)   Coverage amounts are pre-specified by the insurer and cannot be changed.
C)   Coverage is normally written on a named-perils basis.
D)   Covered property is insured only when it is at a specified location.E) C) and D)
F) A) and C)

Question 13

Which of the following coverages are provided by an unendorsed ISO Dwelling Program form?
I.Theft of personal property
II.Named-perils coverage for personal property

Accepted Answer

A)   I only
B)   II only
C)   both I and II
D)   neither I nor IIE) None of the above
F) All of the above

Question 14

Which of the following statements concerning FAIR plans is (are)  true?
I.All property is eligible for coverage regardless of physical condition.
II.Losses and expenses are shared by insurers who participate in a plan.

Accepted Answer

A)   I only
B)   II only
C)   both I and II
D)   neither I nor IIE) B) and D)
F) None of the above

Question 15

Valerie's home does not qualify for coverage under a standard homeowners policy. Valerie would like to have "open-perils" (all-risks)  coverage on her dwelling and named-perils coverage on her personal property. Which of the following policies should Valerie purchase?

Accepted Answer

A)   Dwelling Property 1-Basic Form
B)   Dwelling Property 2- Broad Form
C)   Dwelling Property 3-Special Form
D)   All of these policies provide "open perils" coverage on the dwelling and named-perils coverage on personal property.E) B) and C)
F) A) and B)

Question 16

Mark purchased a boat owners package policy. While using his boat, he negligently hit a pier. A person standing on the pier fell and was severely injured. Which of the boat owners package policy coverages will respond to a lawsuit filed as a result of this negligent act?

Accepted Answer

A)   physical damage coverage
B)   liability coverage
C)   medical expense coverage
D)   uninsured boaters coverageE) B) and D)
F) B) and C) B

Question 17

Which of the following statements about federal flood insurance is true?

Accepted Answer

A)   It is available even if property has been previously flooded.
B)   It is unavailable in high-risk flood areas.
C)   It is available only for residences, not for businesses.
D)   Waiting periods are not used in the federal flood insurance program.E) B) and C)
F) B) and D)

Question 18

All of the following are ISO personal umbrella liability policy exclusions EXCEPT

Accepted Answer

A)   liability arising out of uncompensated board service for a nonprofit organization.
B)   liability arising out of expected or intentional injury.
C)   liability arising out of business operations.
D)   liability arising out of operation of watercraft not covered by an underlying policy.E) None of the above
F) A) and B)

Question 19

Which of the following statements about the federal flood insurance program is true?

Accepted Answer

A)   Under the write-your-own program, each insurer services the policies it writes.
B)   The regular portion of the program does not allow the purchase of higher amounts of coverage than are available under the emergency portion of the program.
C)   No coverage is available for property owners in areas where flooding has occurred previously.
D)   The maximum amount of coverage that can be written on any single dwelling is $25,000.E) A) and D)
F) A) and C)

Question 20

The personal umbrella policy covers some personal injuries. Which of the following is considered a personal injury?

Accepted Answer

A)   bodily injury
B)   property damage
C)   defamation of character
D)   liability arising from professional servicesE) A) and C)
F) B) and C) C

Exam 24: Other Property and Liability Insurance Coverages

The basic purpose of FAIR plans is to provide

Correct AnswerverifiedShow Answer

Which of the following statements is (are) true with regard to an unendorsed ISO Dwelling Form? I.The Dwelling forms provide theft coverage and personal liability insurance. II.The Dwelling 3 form provides broader property coverage than the Dwelling 1 form.

Correct AnswerverifiedShow Answer

Which of the following statements about the eligibility requirements for insuring mobile homes by endorsing a homeowners policy is (are) true? I.The mobile home must be designed for year-round living. II.The mobile home must be located in a fenced area with security guards.

Correct AnswerverifiedShow Answer

Which of the following statements about mobile home insurance under the ISO program is true?

Correct AnswerverifiedShow Answer

Which statement is true about medical expense coverage under the boatowners package policy?

Correct AnswerverifiedShow Answer

Which of the following statements about Dwelling Property 1 (basic form) is true?

Correct AnswerverifiedC

Which of the following statements is (are) true about the National Flood Insurance Program? I.You can't purchase flood insurance through this program if your property is located in a high-flood-risk area. II.Coverage is not available for any property which has been flooded previously.

Correct AnswerverifiedShow Answer

Which of the following statements about coverage under the federal flood insurance program is (are) true? I.Subsidized coverage is available for contents, but not for dwellings. II.A $10,000 deductible applies to each loss.

Correct AnswerverifiedShow Answer

Which of the following statements about various coverages under a Personal Articles Floater is (are) true? I.Each item of jewelry is described and is insured for a specified amount. II.Stamp and coin collections can be insured on a blanket basis.

Correct AnswerverifiedShow Answer

All of the following statements about yacht insurance are true EXCEPT

Correct AnswerverifiedShow Answer

All of the following are commonly excluded by personal umbrella policies EXCEPT

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of most inland marine floater policies?

Correct AnswerverifiedShow Answer

Which of the following coverages are provided by an unendorsed ISO Dwelling Program form? I.Theft of personal property II.Named-perils coverage for personal property

Correct AnswerverifiedShow Answer

Which of the following statements concerning FAIR plans is (are) true? I.All property is eligible for coverage regardless of physical condition. II.Losses and expenses are shared by insurers who participate in a plan.

Correct AnswerverifiedShow Answer

Valerie's home does not qualify for coverage under a standard homeowners policy. Valerie would like to have "open-perils" (all-risks) coverage on her dwelling and named-perils coverage on her personal property. Which of the following policies should Valerie purchase?

Correct AnswerverifiedShow Answer

Mark purchased a boat owners package policy. While using his boat, he negligently hit a pier. A person standing on the pier fell and was severely injured. Which of the boat owners package policy coverages will respond to a lawsuit filed as a result of this negligent act?

Correct AnswerverifiedB

Which of the following statements about federal flood insurance is true?

Correct AnswerverifiedShow Answer

All of the following are ISO personal umbrella liability policy exclusions EXCEPT

Correct AnswerverifiedShow Answer

Which of the following statements about the federal flood insurance program is true?

Correct AnswerverifiedShow Answer

The personal umbrella policy covers some personal injuries. Which of the following is considered a personal injury?

Correct AnswerverifiedC

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C

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B

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C