Home Insurance Certification Practice Test! Trivia Questions Quiz

The answer is medical payments because the neighbor consented to be involved in the activity that injured her.

Personal property & dwelling is are property coverages

Manufactured homes are unable to be insured through our standard and preferred home carriers

This is a cape cod house as evidenced by the dormers and 1.5 stories of living space.

It is your job to ask about all claims and report the info that you learn in the underwriting notes section of the carrier software

The correct answer is that it is never acceptable to exclude the peril of wind. This means that wind coverage should always be included in an insurance policy and should not be excluded under any circumstances.

The customer is responsible to sign all documents and inform the mortgage company of a switch in insurance. When the customer has an ESCROW account the mortgage company remits all payments to the insurer. Typically, refunds go directly to the mortgage company.

Regardless of breed, any animal with a bite history makes the risk unable to be insured

If the customer doesn't respond to the home carrier's welcome communication, the policy will be cancelled.

When writing this endorsement we end up on the hook for the liability of the business. As such we like to avoid high risk and high foot traffic. The lawyer comes with malpractice exposure and the breeder comes with extremely high animal exposure.

Always ask about all claims. Find out whether damage occurred and ensure that all damage was repaired. Leave notes to the underwriter regarding any information you learn

Flood is offered as a separate policy through the Federal Government

An agent does not ask leading questions in writing a home policy because leading now means cancellation later. This means that if the agent asks leading questions, it may result in providing inaccurate or misleading information to the customer. This can lead to the policy being cancelled later if the information provided is found to be incorrect or misleading. Therefore, it is important for the agent to ask unbiased and objective questions to ensure the accuracy and validity of the policy.

Safeco rarely accepts more than 1 claim and only if they are weather related

ASI accepts any amount of claims if those claims are weather related

None of our standard insurers accept multiple non-weather claims

Hip roofs have virtually no flat verticle edges exposed to the wind

The only true way to know the construction style of the home is to ask the customer and make a decision based on the facts and your best judgement. The system cannot identify construction style without your input.

Whether or not the fire department is volunteer does not matter. Safeco requires a pressurized hydrant within 1,000 feet of the home AND a responding fire department within 5 miles

The Travelers Enhanced home package does not provide coverage for earthquakes. This means that if an earthquake were to occur and cause damage to the insured property, the policyholder would not be able to make a claim for the damages. It is important for homeowners in earthquake-prone areas to consider purchasing separate earthquake insurance to ensure they are adequately protected.

Even a single day of lapse constitutes a lapse of home insurance. We cannot write any properties in any lapse of any kind.

Always offer at least 300,000 of Coverage E to every client. It is not expensive. You may write $100,000 Coverage E upon request

Never over-insure the customer - extra coverage may lead to bloated premium. You may reduce Coverage B when there are few or no detached structures to cover

Casualty coverage (Coverage E and Coverage F) extends to any location in the US, Canada, and US territories that the insured uses for non-business purposes

The coverage that may not be lowered in a home policy is Coverage A. It can only be lowered by a maximum of 5%. This means that the insurer cannot reduce the coverage amount for Coverage A by more than 5% when issuing the policy.

We do not write any Silver Travelers products through Goji

The question asks for a factor that is not a Safeco knockout factor. Safeco knockout factors are typically characteristics that may disqualify a property from being insured by Safeco. The options provided are "Open foundation," "Mobile / metal frame," "1500 feet from a fire hydrant," and "Home built in 1922." Out of these options, the only one that is not typically considered a Safeco knockout factor is "Home built in 1922." This suggests that Safeco does not have a specific rule or guideline regarding the age of a home when determining insurability.

Safeco may insure incidental business exposures. Businesses with malpractice risk or professional liability (doctors, lawyers, accountants) and businesses with constant high-volume customer foot traffic are unacceptable

ASI accepts any amount of claims if those claims are weather related. These claims do not count against the customer in any way.

Coverage A is based solely on the home as calculated by the carrier's replacement cost estimator. It should not be swayed by the customer's opinions, market, value, or prior coverage

Our goal in the initial pre-quote is to see if we will be kicked out for factors that are not able to be entered into our home portal. Processing a rough quote is the only way that we can be sure that we can write a house when considering credit and claims

A policy with a high deductible is only able to be used for very severe losses. The customer pays less premium, but will have a hard time filing any smaller claims

The correct answer is $5,000. This means that if a customer wants to schedule a property value over $5,000, they must typically submit a receipt or appraisal completed within the last 5 years. This is a requirement for any scheduled items of any value.

The reconstruction cost represents the "all-in" worst case scenario amount of money required to rebuild the home in the same style with the same materials on the same plot of land. It is not affected by the real-estate market or by any taxes or fees

The HO-05 is the only policy that offers replacement cost and open peril coverage for all losses and types of covered property

Most of our carriers only accept PC-8B and lower!

The only way to determine the foundation type is to ask the customer and visually confirm the construction of the house. While foundation types tend to be regional, this only gives you a starting point. Regional assumptions should never be treated as fact when submitting an application

When calculating the square footage of a bi-level / raised ranch set the foundation to SLAB and include all finished areas in the square footage estimate. This includes any built in garages

ASI requires an e-signature for home policies.

The home inspection will provide lots of details that a home buyer may not know as he or she does not yet live in the home. It will also give you an indication as to the overall quality of the home and highlight any potential structural issues

Sidewalks are covered as Coverage B: Other structures
Televisions are covered as Coverage C: Personal property

The limited water damage endorsement actually reduces policy coverage. As such, it leads to a reduced premium

The correct answer is that all of the answers are correct. This means that Coverage C should only be changed if any of the following conditions are met: the customer has more property than the set limit, the change has been discussed with the customer, or the customer has less property than the set limit. In other words, any of these reasons would justify a change in Coverage C.

Additional / other coverages are freebies that are on every policy written by the carrier at all times. Identity fraud is an endorsement, which may be added to the policy for additional premium

All eligible in-home business risks are writable only after verifying with Travelers underwriting

Safeco and Travelers are the carriers that offer incidental business endorsements.

Modular homes are acceptable, as are owner-occupied homes of good quality regardless of purchase method. Business exposures with large amounts of foot traffic, homes currently on the market for sale, and manufactured (metal wall) homes are not insurable by our standard and preferred home carriers.

The insured's candle-making tools will be covered up to $2,500 because the insured had an incidental business of making candles in his garage. Since the tools were used for this business, they would be considered as part of the insured's personal property and would be covered under the insurance policy up to the specified limit of $2,500.

When we under-insure a home, all claims may be subject to a penalty, even if the policy provides enough coverage for the claim

The interested parties are those you will either have to send documents to or receive documents from. They are the parties who are waiting for the insurance to close the home sale

Safeco's system never automatically reconciles claims in the C.L.U.E. report with the application. You must manually input any paid claim over $0 into the application exactly as it appears in the C.L.U.E. report

While these risks may not be ASI's target market, you hold a competitive advantage in being able to insure these homes through ASI when other carriers will decline coverage