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Property & Casualty Insurance CHAPTER 5-Homeowners. PREPARED BY THE FOLLOWING TECHNOLOGY CENTER CSR ACADEMIES: CADDO-KIOWA CANADIAN VALLEY GORDON COOPER INDIAN CAPITAL-TAHLEQUAH SOUTHWEST WES WATKINS. SWTC.
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Property & Casualty InsuranceCHAPTER 5-Homeowners PREPARED BY THE FOLLOWING TECHNOLOGY CENTER CSR ACADEMIES: CADDO-KIOWA CANADIAN VALLEY GORDON COOPER INDIAN CAPITAL-TAHLEQUAH SOUTHWEST WES WATKINS
SWTC Homeowners policies may only be issued to cover private residential purpose, and which contains no more than three family living units and no more than three boarders or roomers per family. A) TRUE B) FALSE
Caddo-Kiowa Tech The declarations page of a homeowners policy contains information about the risk included: a) Identity of the named insured b) Location of the dwelling c) The policy deductible d) All the above.
Wes Watkins Tech If firefighters are called to save or protect covered property from a peril insured against, all forms provided up to $500 of coverage for fire department service charges. a) True b) False
Gordon Cooper Gordon Cooper Not at anytime is coverage for specific items subject to special limitations. A) True B) False
Canadian Valley Personal Property replacement cost is provided by: A) An endorsement on all HO policies B) Is included as a standard provision in all HO policies C) Is an endorsement on HO-2 and HO-3 D) All of the above.
SWTC A homeowners policy may not be issued to cover any property to which farm forms or farm rates apply, or property situated on any premises used for farming purposes. a) True b) False
Caddo-Kiowa Maximum coverage for any one tree, plant, or shrub is $250 on what form? a) HO-3 b) HO-6 c) HO-8 d) HO-3 + HO-8
Wes Watkins Tech Earthquake coverage is an added endorsement and an additional charge. A) True B) False
Gordon Cooper Property damage means physical injury to or loss of use of intangible property. A) True B) False
Indian Capital The fewer number of categories of property subject to sub-limits does not mean that limited coverage is more restrictive than broad theft coverage. A) True B) False
SWTC The liberalization clause follows dwelling forms during the policy period or within 30 days prior to inception are automatically applied. A) True B) False
Canadian Valley What is the age of a covered family member in the same household as the insured for liability insurance? A) Under 21 C) Over 21 B) Under 16 D) Under 18
Caddo-Kiowa Tech Homeowners policies provide _______ major property coverages? A) 6 B) 2 C) 4 D) 5
Wes Watkins Tech In recent years, homeowners policies have been subject to a number of revisions. In most of the states in this country we use “Homeowner” 1984 policies. A) True B) False
Gordon Cooper The following types of property & losses are not covered by any homeowners policy: land, structures used for business, loss caused by the neglect of the insured, & losses caused by off-premises power failure. A) True B) False
Indian Capital Vehicle damage to a fence, driveway, or walk caused by a resident is excluded under the HO-2 policy form. A) True B) False
SWTC Homeowners forms exclude loss caused by earthquake, but earthquake coverage may not be added to the endorsement. A) True B) False
Caddo- Kiowa Tech HO-1 covers ______ perils. A) 10 B) 9 C) 7 D) 6
Canadian Valley Medical payments to others cover necessary medical expenses incurred within how many years of an accident causing bodily injury? A) 2 years C) 1 year B) 5 years D) 3 years
Wes Watkins Tech Claim expense coverage includes the costs of defending a claim and court costs charged against an insured in any suit the insurer defends. A) True B) False
Caddo-Kiowa Tech If Roy rented his home, what kind of homeowners insurance can he get? Short Answer
Gordon Cooper All homeowners policies provide identical liability coverage including coverage E & coverage F. A) True B) False
Indian Capital An insured can purchase an inflation guard endorsement which will automatically raise the limits for which coverages at periodic intervals? A) Coverage B B) Coverage C & D C) Coverage A D) All of the above
SWTC Which of the following is not one of the 4 major property coverages which are called “additional coverages” on the forms? A) Coverage A-Dwelling B) Coverage B-other structures C) Coverage C-personal liability D) Coverage D-Loss of use
Caddo-Kiowa Tech _______ is the only homeowners form insuring personal property items against loss by what is known as “mysterious” disappearance. A) HO-3 C) HO-6 B) HO-4 D) HO-15
Wes Watkins Tech If the named insured or the spouse dies, coverage does not continue for the legal representative. A) True B) False
Gordon Cooper When a peril insured against causes a loss, all forms cover cost for _____ made to protect covered property for further damage. A) debris removal B) reasonable repairs C) property of others D) none of the above
Canadian Valley The liberalization clause follows dwelling forms-changes during the policy period or within how many days prior to the inception are automatically applied? A) 45 days C) 60 days B) 30 days D) 10 days
Indian Capital Maximum coverage for anyone tree, plant or shrub is: A) $100 B) $250 C) $500 D) None of the above
SWTC Which homeowners edition was introduced in six states on a trial basis to determine both public and industry reaction to a significant modernization of the 1976 policies? A) 1981 C) 1982 B) 1984 D) 1983
Caddo-Kiowa Tech How does HO-8 differ from basic coverage? A) ACV settlement on the dwelling B) Miscellaneous coverage restrictions C) Elimination of optional property coverages D) All of the above
Wes Watkins Tech A homeowners policy has two major coverage sections, a property section and a liability section. A) True B) False
Gordon Cooper Unlike dwelling forms, all homeowners forms include coverage for _________. A) loss caused by aggravated earth movement B) theft of person property C) property in an apartment rented by others D) none of the above
Indian Capital Which policy form does not give the insured the option of having the personal property of guests or residence employees covered by the policy? A) HO-8 C) HO-6 B) HO-4 D) HO-1
SWTC How many days of notice must the insurer give the insured if the policy is to be cancelled during the first 60 days of coverage, or if it is cancelled at any time for non-payment of premium? A) 5 days C) 7 days B) 10 days D) 14 days
Canadian Valley Liability insurance is provided for the insured’s resident only. It excludes any person or organization legally responsible. A) True B) False
Caddo-Kiowa Tech How many liability coverages are on homeowners policies? A) 2 C) 4 B) 3 D) 5
Wes Watkins Tech Residence premises means: A) Insured location B) Dwelling C) Unit owners D) Landlord’s furnishings
Gordon Cooper _________ covered by homeowners policies are similar to those covered by dwelling forms, and the terms “basic,” “broad,” and “special” forms have a similar meaning. A) Falling objects of a buildings interior B) Perils C) Both A & B D) None of the above
Indian Capital Which of the following articles of personal property does not have a special limit under Coverage C of the homeowner’s policy? A) Guns C) Golfer’s Equipment B) Furs D) Water Craft
SWTC Sam asks Thomason Pools to put a swimming pool in his well manicured backyard. Are the trees and shrubs covered under the Homeowners Policy? (there are 6 dozen trees and 4 dozen bushes and shrubs) Does debris removal coverage apply? A) Yes B) No
Caddo-Kiowa Tech Stamps have $1,000 of coverage on broad forms. A) True B) False
Wes Watkins Tech Perils covered—Basic form does not cover A) Explosion B) Smoke damage C) Aircraft D) Collapse
Canadian Valley Personal Property coverage is included on all forms. A) True B) False
Gordon Cooper All of the following are per occurrence limits for coverage C limits except: A) $250 C) $2,500 B) $1,000 D) $1,500
Indian Capital The full limit applies to personal property owned or used by any insured while it is anywhere in the world. A) True B) False
SWTC What 2 types of construction apply to earthquake rates? A) Masonry, frame B) Stucco, shingles C) Wood, adobe D) Toothpicks, splinters
Caddo-Kiowa Tech On homeowners forms the full amount of Coverage C applies to property owned or used by any insured while it is anywhere in the world. A) True B) False
Wes Watkins Tech Perils covered—HO3 is what type of form? A) Special B) Broad C) Basic D) None of the above