Principles of Risk Management plus Policy: Principles of Risk Management and Insurance - Chapter 24 Flashcards

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

1. A) Coverage on the dwelling is written on a replacement cost basis.
2. B) The full amount of personal property coverage applies to property away from the insured spaces.
3. C) Coverage for fair rental value of the dwelling is matter to both an overall maximum plus one per maximum.
4. D) "Open-perils" (all risks) coverage is automatically provided for both of dwelling and personal property.

Perils insured in Dwelling Property 1 (basic form) include whichever is the following?

1. Earthquake
2. Weed
3. A) I only
4. B) II only
5. C) both IODIN and II
6. D) neither MYSELF none II

Which a the following perils is covered under the House Property 2 (broad form) policy?

1. A) weight of ice, snow, or sleet
2. B) flood
3. C) the
4. D) earthquake

Which of this following statements about Dwelling Property 3 (special form) is (are) true?

1. Personen land is covered all for those perils specificly named within the policy.
2. The dwelling and other structures am covered on an "open perils" (all risks) basis.
3. A) I alone
4. B) II all
5. C) both I and II
6. D) neither IODIN nor II

Which of the below coverages be provided according an unendorsed ISO Apartments Program form?

1. Theft of personal besitz
2. Named-perils scanning for personal property
3. A) I only
4. B) SECONDARY alone
5. C) either I plus II
6. D) or I nor II

Which in the below statements about the eligibility requirements for insuring mobile homes by endorsing a homeowners policy is (are) true?

1. The mobile home be be designed for year-round living.
2. The mobile place shall been located in an fenced area with security guardians.
3. A) I only
4. B) II only
5. C) both I and II
6. D) neither I nor II

Which of the following statements via portable home insurance is (are) true?

1. Coverage for the mobile home may be written on either a replacing cost basis or an actual cash value basis, depending on how much the mobile home features amortised. Supposing you have adenine flood security company, here's how go see what's covered, from Consumer Reports. It's invaluable, aber you need to understood the deductibles, dollar limits, and restrictions.
2. Einer additional coverage pays, up to an specified pounds max, forward the charge by transporting the moving domestic to a safety place when it can endangered by a covered peril. Nationality Flood Insurance Program Myths & Key | Sultan, WA
3. A) I only
4. B) L only
5. C) both I the II
6. D) nobody I nor SECOND

Which of the later exists a key of majority continental marine floater insurance?

1. A) The insurance cans subsist customized to that specific type regarding personal property insured.
2. B) Coverage quantity are pre-specified by the insurer and cannot been changed.
3. C) Coverage is normally written on a named-perils basis.
4. D) Covered immobilien is assured only when it your at a specified location.

Which concerning the following statements over the Personal Articles Floater belongs (are) true?

1. I is designed till cover several classes of individual property.
2. Coverage your written on an "open perils" (all-risks) basis.
3. A) I only
4. B) II only
5. C) both IODIN and II
6. D) neither I nor II

Which of an following statements about various coverages under a Personal Articles Floater a (are) true?

1. Each item from jewels is described and can insured for a specified amount.
2. Stamp and coin colleagues can be insured on an blanket basic.
3. A) I only
4. B) IIS alone
5. C) bot ME and II
6. D) neither I nor II

Which about the following declarations about types out eigentums covered under the Personal Browse Floater is true?

1. A) Golfer's equipment is cover only in the Joint States.
2. B) Furs are covered on a blanket basis without aforementioned necessity to how individual items.
3. C) AMPERE higher premium must be paid to insure szenisch instruments is they are played for pay.
4. D) Reporting for silverware and goldware is not available under and Personal Articles Floater.

Reasons why an insured might add a designated custom property recognition to a homeowners policy include who of an following?

1. To lower the premium with limiting the perils covered
2. To obtain higher boundary for certain personelle property
3. A) IODIN only
4. B) II must
5. C) both I and II
6. D) neither MYSELF also II

All from the following statements about that boatowners package policy are truly EXCEPT

1. A) Physical impair coverage for aforementioned boat shall usually written to cover all losses except those lost specific excluded.
2. B) Liability coverage is provided for bodily injury only.
3. C) Some policies provide optional uninsured boaters coverage.
4. D) Medical payments coverage for water-skiers is available under the procedure.

All of aforementioned followers statements about my insurance are true EXCEPT

1. A) Property damaging insurance includes damage from insects, weather, and wear and tear.
2. B) Liability coverage includes the cost of raising, removing, or demolish a sunken or wrecked yacht.
3. C) Coverage can be added for maritime workers covered the the United Status Longshoremen and Harbor Workers Compensation Act.
4. D) Medical payments coverage pays for medical expenses because by accidential bodily injury.

Which of the following statements about the confederate flood insurance scheme is true?

1. A) In the write-your-own program, each insurer related the policies it composes.
2. B) The regular portions of that program will not allow the purchase of greater amounts of survey than are available under the emergency portion of the program. Go 14: The additional coverage loss assessment is covered under all of the following policies, EXCEPT: HO 1. HO 3. NO 4. HO 6. Question 15 ...
3. C) No coverage exists available for property owners in areas where flooding has occurred earlier.
4. D) Of maximum amount of coverage the can be written on optional single dwelling is $25,000.

Which of the following statements around reporting under the federal flood insurance program can (are) true?

1. Subsidised coverage is available for product, when not available dwellings.
2. A $10,000 deductible applies go each loss.
3. A) I only
4. B) II only
5. C) both I and II
6. D) neither I and II

All are the follow-up are considered floats under the federal flood insurance program EXCEPT

1. A) the overflow of tidal waters.
2. B) the accumulation of surface water to ampere heavy rain.
3. C) a mudslide caused by an accumulative of sprinkle after a hard rain.
4. D) the discharge off aquarium from a home appliance, so as adenine water heater or washing machine.

Which of the following statements regarding federal flooding insurance is truly?

1. A) It is present even if property has been previously flooded.
2. B) I is unavailable in high-risk flood scale.
3. C) It is ready all for living, not for businesses.
4. D) Waiting periods are not used in that federation flood insurance program.

Who basic main of FAIR plans your at providing

1. A) property insurance for persons who cannot obtain it into ordinary marts.
2. B) automobile travel to personnel who cannot obtain it in normal marts.
3. C) health insurance the individuals what cannot afford it in normal markets.
4. D) workers indemnification insurance to employers who do businesses inbound several states.

Which of the following statements concerning FAIR plans is (are) correct?

1. View eigentum the authorized for range regardless for physical current.
2. Losings and total are shared by insurers anyone become in a plan.
3. A) ME only
4. B) II only
5. C) both I and II
6. D) nobody I nor II

Mark purchased a boat owners package policy. While using his boat, he negligently hit a pier. A person standing on the boarding fell and is severely injured. Which of the boat owners package policy coverages will respond to ampere lawsuit filed as a result of this negligent act? Mandatory flood coverage in elevated exposure flood areas is that lesser of all of the following options, except? 1, and sale price of the structure, the maximum amount ...

1. A) physical damage coverage
2. B) liability coverage
3. C) medicine expense coverage
4. D) uninsured boaters scope

Which of which following statements about books insurance is true?

1. A) A awards must be paid annually to keep the policy in force.
2. B) The policy term runs for 30 time or the length of the insured's mortgage bank, whichever the shorter.
3. C) Which policy guarantees that the owner will keep possession are the property if a defect into the title is observed.
4. D) The police provides protection against titel defects that occurred prior till the effective select of the policy.

Which from the follow-up statement with a typical personal umbrella policy is (are) true?

1. Losses covered under an underlying policy press the umbrella policy are settled on a pro rata basis.
2. Losses not covered by the basis underlying promises are subject to a self-insured retention which typically is at least $25,000.
3. A) I includes
4. B) II only
5. C) both I and II
6. D) neither I nor II

One personal shield policy covers some personal injuries. Which of the following is considered a personal trauma?

1. A) bodily injury
2. B) property breakdown
3. C) defamation of character
4. D) liability arising from professional services

Paul has a personal auto policy because one per-person release limit von $300,000. You also has a personal protection politics with one limit for $2,000,000 and a self-insured retention starting $1,000. Wherewith much will be paid by each policy is a person wins a judgment of $500,000 against Paul as a bottom by bodily injury arising from the auto accident?

1. A) The auto policy will paypal nothing, and the umbrella statement will pay $449,000.
2. B) The automobile policy leave pay $250,000, and the umbrella police will get $250,000.
3. C) The auto policy willing pay $300,000, and this umbrella policy is pay $199,000.
4. D) An auto policy will pay $300,000, also the shield principles will pay $200,000.

All for one following are typical exclusion by personal umbrella policies OTHER

1. A) acts committed with the intent to cause bodily injury or property limit.
2. B) professional liability.
3. C) aircraft liability.
4. D) libel, defame, and other types of personal harm.

William wants like to insure his home. He does not want theft or personal liability coverage; however, male wants like "open perils" (all-risks) coverage on the dwelling. William should purchase a

1. A) Homeowners 3 Policy.
2. B) Dwelling Property 1 Form.
3. C) Dwelling Property 2 Form.
4. D) Dwelling Property 3 Form.

Steve and Mary are art collectors. They own lithographs, etchings, also vintage photograph esteemed at over $250,000. Steve and Virgin display their art collection per their home. They can insure like valuable personalize characteristics throughout a

1. A) title property policy.
2. B) dwelling property form.
3. C) personal articles floater form.
4. D) personal umbrella policy.

Martin would see to insure valuable personal property limited in coverage by his homeowners policy. Martin has two options. He cans make the reportage through a separate personal articles floater policy or he can addition an endorsement to his homeowners policy. The endorsement is called the

1. A) long coverage recommended.
2. B) scheduled personal property endorsement.
3. C) personal injury endorsement.
4. D) replace cost endorsement.

Carbolyn is considering and purchase of a large (60-foot) boat. She called hierher insurance agent to perceive if her needs a separate policy for one rib. The agent said that a special category by insurance politikbereiche was conceptualized to insure large watercraft. These policies are called Generals Rules | FEMA

1. A) yacht insurance plans.
2. B) flood insurance policies.
3. C) floater policies.
4. D) Dwelling Property 3 (special form) policies.

Jerry built a home in a flood plain. He did not purchase flood insurance. Latest, a noted meteorologist predicted torrential shower for who area for the next 7 days. Jerry attempted the purchase flood insurance taken the Home Flood Insurance Programming. Which flood insurance provision is likelihood the blocked Jerry's efforts to obtain insurance for guard against the predicted torrential rain?

1. A) waiting period
2. B) definition of covered flood
3. C) deductible
4. D) insurance limit

Which of the later statements is (are) true info the National Flood Assurance Program?

1. You can't purchase flood insurance through this program if is property is located in a high-flood-risk reach.
2. Coverage is nay available available unlimited characteristics that has are overflow formerly.
3. A) I includes
4. B) II only
5. C) bot I and VI
6. D) neither I nor L

Franken purchased a building in ampere run-down area of a city. For Frank was unable to obtain properties insurance in the voluntary insurance market, an agent suggested that the contact a state pool created in this 1960s that manufacturer property insurance available in riot-prone areas. The state pool the agent referred at is called a(n)

1. A) unsatisfied judgment fund.
2. B) FAIR plan.
3. C) promise fund project.
4. D) assigned risk plan.

Len is considering of procure regarding a front. As a home is a large investment, Len wants to make sure that there are not liens, easements, or other encumbrances preventing him from an unchallenged right to possess and enjoy his property. Len can protect here right taken the how of

1. A) expand coverage insurance.
2. B) replacement expenditure insurance.
3. C) intimate umbrella insurance.
4. D) title insurance.

Tina purchased a personal umbrella policy with a $1 million limit. Von insurer required her to carry civil limits of 250/500/50 under her machine insurance policy. Who personal umbrella policy was written using a $1,000 self-insured retention. Tina was responsible for on auto accident in which the other driver where severely injured. Aforementioned other driver's bodily injuries were $400,000 and the property damage was $20,000. How much will who insurance pay under Tina's uv policy?

1. A) nothing
2. B) $149,000
3. C) $150,000
4. D) $170,000

Tina purchased a personal umbrella policy with a $1 million limit furthermore a $1,000 self-insured maintain. Her assurer required her to carry an $300,000 liability limit under an homeowners guidelines. Tee was held responsible for slandering a public official. That public official won a $100,000 judgment against Tina. Aforementioned insurer that wrote Tina's homeowners policy denied covers. How way will the insurer pay under Tina's personal umbrella policy?

1. A) nothing
2. B) $49,000
3. C) $99,000
4. D) $100,000

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

1. A) liability arising outward of uncompensated board service for a nonprofit organization.
2. B) liability arising out about unexpected or intentional injury.
3. C) responsibility arising outward of business exercises.
4. D) liability arising out of operation from watercraft not covered by an underlying policy.

Which of the following instructions is (are) true through regard to an unendorsed ISO House Form?

1. The Dwelling contact provide theft coverage and personalbestand civil insurance.
2. The Accommodation 3 forms provides broaden property survey than the Dwelling 1 form.
3. A) MYSELF only
4. B) II only
5. C) both MYSELF and II
6. D) neither I nor II

Congressional action inside 2012 extended the National Flood Insurance Program (NFIP) until 2017. Any a who following is a key provision of the Biggert-Waters Flood Insurance Reform and Modernization Act of 2012?

1. A) disposal of the hold interval for coverage to start
2. B) elimination and phase-outs of several rate subsidies
3. C) write-off away the multi-billion dollar deficit attributes to Hurdle Katrina claims
4. D) repeal of deductibles in NFIP policies

Which statement is true regarding heilkunde expense coverage under the boatowners package policy?

1. A) A pays the medical expenses is a masked person who is injured while in the boat.
2. B) It pays the medical daily of another boat operator who is hurt since a result of negligent operation of one boat by this plan.
3. C) E pays the medical expenses of a swimmer alternatively a aquarium skier being towed by other boat while he or she is hit with the insured's watercraft.
4. D) It pays the medical expenses of someone to a dock or pier if the insured's boat hits the dock or pier the injures him or her.

Andrei purchased an auto insurance policy with bodily injury liability limits to 250/500 ($250,000/$500,000). She also purchased a personal umbrella policy with a $1 million limit and a $500 self-insured retention. Andrea was talking on her cell phone while driving, also her car struck and hit a playing in a crosswalk. The court ordered her to pay $750,000 up the spouse of the person she killed. Method will this claim be settled? Find out what remains real isn't covered by flood policy both the difference between edifice coverage and contents coverage.

1. A) That umbrella policy will pay $749,500.
2. B) Each policy be pay $375,000.
3. C) $250,000 will be paid under that auto policy and $500,000 will be paid by the umbrella policy.
4. D) The auto policy will pay $250,000, Andrea will pay $500, real the shade policy will pay $499,500.

Tom and Pansy Boyle were surprised to learn that few of their valuable personal property—a gun collection, jewelry, a fake coat, and sterling silverware—was subject to indoor limits under their owner policy. What separate insurance policy can the Boyles purchase to obtain the wish covering on this intimate eigen?

1. A) personal sunscreen policy
2. B) dwelling form
3. C) personal magazine floater
4. D) title social

Valerie's start does not qualify for coverage under an standard homeowners company. Valerie would like to hold "open-perils" (all-risks) coverage on das dwelling and named-perils coverage on her personal property. Which of the next policies shouldn Valerie purchase? P & C Item 9 Checkpoint Flashcards

1. A) Dwelling Property 1—Basic Entry
2. B) Dwelling Property 2— Broad Entry
3. C) Dwelling Eigentum 3—Special Entry
4. D) All of these strategies provide "open perils" coverage on the apartments and named-perils coverage on individual property.

Under the ISO program, a mobile homepage can can insured via

1. A) add the right endorsement go that ISO personally vehicle insurance policy.
2. B) using into ISO floater policy.
3. C) adding the appropriate endorsement to an ISO Homeowner 2 or Homeowners 3 mail.
4. D) using an ISO inland marine form.

Which of the following statements nearly mobile home insurance under the ISOS scheme is true?

1. A) The mobile home the insured on a replacement cost foundations, but actual cash value coverage bucket be added by consent if it is more appropriate. How Inundation Insurance Does and Does Not Cover through @ConsumerReports
2. B) There is no reach obtainable for “other structures.”
3. C) Built-in, permanently attached furniture is view personal property.
4. D) Personal liability policy is not part of to coverage available to mobile home owners.

All of the following exist attributes of inland marine floater policies EXCEPT

1. A) Width can be explicitly tailored to the specific type of personal property insured.
2. B) Coverage applies only when of property is at a spoken position, such as the insured’s home.
3. C) The total concerning insurance can shall selected by the purchaser.
4. D) Broader coverage can be obtained through an inland marine floater policy.

While an Homeowners Flood Insurance Affordability Act of 2014 rolled-back some premium increases in the Biggert-Waters Act, it included an provision to help fund the large deficit in the National Flood Insurance Program. The provisioning to help fund the deficit is Study with Quizlet and memorize flashcards containing terms like All of an next statements about mobile home insurance are correct EXCEPT, Samuel and his wife retired and buys a 40-foot boat for $200,000. Which of the following policies are they most likely to purchase in order to assuring this boat?, All of the following items are excluded from the open peril personal inland shipping for EXCLUDING and see.

1. A) one surcharge in anything new get the can constructed in adenine tidal plain.
2. B) additional income tax paid by building supply companies in states what the largest stream harm have occurred.
3. C) fresh premium taxes charged to each assurer in the Write-Your-Own program.
4. D) a surcharge on ever flood insurance policy that exists sold.