Chapter 8. Homeowners Insurance

12 Questions | By Fsspc | Last updated: Mar 18, 2022 | Total Attempts: 1529

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In this chapter, we focus on the Homeowners 2000 policy issued by ISO.

Questions and Answers

1.

A homeowner who wants the maximum protection for her home and personal property should purchase the
- A.
  
  HO-4.
- B.
  
  HO-2.
- C.
  
  HO-3.
- D.
  
  HO-5.
2.

Which homeowners form provides broad coverage for both the dwelling and its contents?
- A.
  
  HO-3
- B.
  
  HO-2
- C.
  
  HO-6
- D.
  
  HO-8
3.

Which of the following could be covered by an unendorsed homeowners policy?
- A.
  
  Mobile home
- B.
  
  Home that is rented to another person
- C.
  
  Home occupied by the insured and two boarders
- D.
  
  Home that is owned and occupied by the insured
4.

In the homeowners forms,
- A.
  
  the property coverage varies in each form.
- B.
  
  the property coverage is the same in each form.
- C.
  
  the liability coverage varies in each form.
- D.
  
  the liability coverage is the same in each form.
5.

Which of the following classes of personal property are subject to special sublimits of coverage under a homeowners policy?
- A.
  
  Animals, birds, and fish
- B.
  
  Money
- C.
  
  Watercraft
- D.
  
  Trailers
6.

Under a homeowners policy, which of the following classes of personal property have special limits for theft losses, but not for other types of losses?
- A.
  
  Money
- B.
  
  Firearms
- C.
  
  Silverware
- D.
  
  Jewelry
7.

Which of these statements concerning Medical Payments to Others coverage are correct?
- A.
  
  Injury to an insured is not covered.
- B.
  
  The insured does not have to be legally liable for coverage to be available.
- C.
  
  Injuries that occur off the insured location are never covered.
- D.
  
  Medical payments are covered only if the expenses are reported within six months of the occurrence.
8.

Which of these statements concerning personal liability coverage are correct?
- A.
  
  It covers damages that the insured becomes legally obligated to pay because of bodily injury or property damage.
- B.
  
  The insurer will not defend liability claims brought against the insured that are groundless or false.
- C.
  
  It applies to the insured's personal, nonbusiness activities that occur anywhere.
- D.
  
  It covers damages resulting from intentional acts of an insured.
9.

Which of these statements about Coverage C of a homeowners policy are correct?
- A.
  
  It only covers the insured's personal property while it is at the residence premises.
- B.
  
  At the insured's request, coverage applies to a guest's property while the guest is in the insured's residence.
- C.
  
  Property normally kept at a residence other than the residence premises is covered for 10% of the Coverage C limit or $1,000, whichever is greater.
- D.
  
  There is no coverage for property being moved from the residence premises to a new principal residence.
10.

A homeowners policy has been in force 30 days, and the company discovers that the insured has misrepresented certain material facts. The insurer wants to cancel the policy. Under what circumstances may it do so?
- A.
  
  The company must wait until the policy has been in force for 60 days before it may cancel.
- B.
  
  The company must give the insured 30 days written notice of cancellation.
- C.
  
  The company must give the insured 10 days written notice of cancellation.
- D.
  
  Under no circumstances; a policy cannot be cancelled because of material misrepresentation by the insured.
11.

What is the limit on coverage for grave markers under the homeowners policy?
- A.
  
  $1,000
- B.
  
  $2,000
- C.
  
  $2,500
- D.
  
  $5,000
12.

Which of the following cannot be covered by a homeowners Watercraft Liability endorsement?
- A.
  
  A 30-foot boat powered by a 25 horsepower outboard engine
- B.
  
  A 28-foot sailboat
- C.
  
  A 28-foot inboard motorboat
- D.
  
  A 25-foot boat powered by a 30 horsepower outboard engine