Home Insurance Certification Practice Test! Trivia Questions Quiz

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| By David Pezzano
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Quizzes Created: 5 | Total Attempts: 1,349
Questions: 49 | Attempts: 282

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Home Insurance Certification Practice Test! Trivia Questions Quiz - Quiz

This is the home insurance practice test. It includes 50 questions that may be on the real certification exam


Questions and Answers
  • 1. 

    What coverage may not be lowered in a home policy?

    • A.

      Coverage A (by 5% maximum)

    • B.

      Coverage B (2% of Coverage A)

    • C.

      Coverage C (50% - 75% of Coverage A)

    • D.

      Coverage F (Minimum is $1000)

    Correct Answer
    A. Coverage A (by 5% maximum)
    Explanation
    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.

    Rate this question:

  • 2. 

    Protection class can best be described as:

    • A.

      The home's fireproofing based on construction features and alarm systems

    • B.

      The amount of time it takes the emergency services (fire, paramedic, ect.) to reach the home based on road distance

    • C.

      The home's access to water in the event of a fire

    • D.

      The home's chance of taking substantial damage in the event of a fire

    Correct Answer
    D. The home's chance of taking substantial damage in the event of a fire
    Explanation
    Most of our carriers only accept PC-8B and lower!

    Rate this question:

  • 3. 

    When is it acceptable to exclude coverage for the peril wind?

    • A.

      It is never acceptable to exclude the peril of wind

    • B.

      Only if the customer can provide documentation stating that they are admitted into a wind pool

    • C.

      Only when including wind coverage would make the policy ineligible

    • D.

      Only if the customer has a federal flood insurance policy

    Correct Answer
    A. It is never acceptable to exclude the peril of wind
    Explanation
    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.

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  • 4. 

    A home has become uninsurable once it has been in lapse for at least:

    • A.

      1 day

    • B.

      5 days

    • C.

      30 days

    • D.

      60 days

    Correct Answer
    A. 1 day
    Explanation
    Even a single day of lapse constitutes a lapse of home insurance. We cannot write any properties in any lapse of any kind.

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  • 5. 

    Identify the risks which are eligible for coverage under Safeco, ASI, and Travelers.

    • A.

      Currently for sale

    • B.

      Purchased as part of a short sale

    • C.

      Modular home

    • D.

      Manufactured home

    • E.

      Homeowner runs a small barber-shop out of the home and services roughly 5 customers daily

    Correct Answer(s)
    B. Purchased as part of a short sale
    C. Modular home
    Explanation
    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.

    Rate this question:

  • 6. 

    Which carrier would accept a risk with the applicable loss history?

    • A.

      ASI

    • B.

      Safeco

    • C.

      Travelers

    • D.

      None of our carriers would accept this risk

    Correct Answer
    D. None of our carriers would accept this risk
    Explanation
    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

    Rate this question:

  • 7. 

    What is the best description of the style of this home?

    • A.

      Queen Anne

    • B.

      Cape Cod

    • C.

      Colonial

    • D.

      Salt box

    Correct Answer
    B. Cape Cod
    Explanation
    This is a cape cod house as evidenced by the dormers and 1.5 stories of living space.

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  • 8. 

    What is the proper way to determine the square footage of this home?

    • A.

      Include the square footage of both the top and bottom levels as well as the built-in garage

    • B.

      Include the square footage for only the top floor

    • C.

      Include the square footage for the top floor but indicate the foundation as a finished basement

    • D.

      Include the square footage of both the top and bottom levels but exclude the built-in garage

    Correct Answer
    A. Include the square footage of both the top and bottom levels as well as the built-in garage
    Explanation
    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

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  • 9. 

    What is the name for this shape of the roof?

    • A.

      Gable

    • B.

      Hip

    • C.

      Mansard

    • D.

      Gambrel

    Correct Answer
    B. Hip
    Explanation
    Hip roofs have virtually no flat verticle edges exposed to the wind

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  • 10. 

    Coverage A: Dwelling protection will pay for loss to:

    • A.

      Insulation

    • B.

      Sidewalks

    • C.

      Skylights

    • D.

      Breezeway

    • E.

      Television

    Correct Answer(s)
    A. Insulation
    C. Skylights
    D. Breezeway
    Explanation
    Sidewalks are covered as Coverage B: Other structures
    Televisions are covered as Coverage C: Personal property

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  • 11. 

    Which of the following perils can never be added to the policy even by endorsement?

    • A.

      Earthquake

    • B.

      Flood

    • C.

      Sewer backup

    • D.

      Hurricane

    Correct Answer
    B. Flood
    Explanation
    Flood is offered as a separate policy through the Federal Government

    Rate this question:

  • 12. 

    Casualty insurance coverages extend to:

    • A.

      Only those locations mentioned on the declarations page

    • B.

      Any place the insured uses for non-business purposes

    • C.

      Only the residence premesis

    • D.

      The residence premises but not the yard if the home has a pool or trampoline

    Correct Answer
    B. Any place the insured uses for non-business purposes
    Explanation
    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

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  • 13. 

    The standard amount of Coverage E: Liability the customer should be offered is:

    • A.

      $100,000

    • B.

      $300,000

    • C.

      $500,000

    • D.

      $1,000,000

    Correct Answer
    B. $300,000
    Explanation
    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

    Rate this question:

  • 14. 

    Emily’s neighbor is injured while helping her install carpeting in the house. What part of the policy would provide coverage for the neighbor's injury?

    • A.

      Personal property

    • B.

      Medical Payments

    • C.

      The injury to the neighbor would not be covered by Emily's insurance

    • D.

      Dwelling

    Correct Answer
    B. Medical Payments
    Explanation
    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

    Rate this question:

  • 15. 

    Which profession best qualifies for a business pursuits endorsement?

    • A.

      A man who runs a full-time barber shop in the front room of his home

    • B.

      A woman who teaches piano lessons to 1-5 students per week

    • C.

      A lawyer who runs his legal practice out of a home office

    • D.

      A dog breeder who rears animals on the property

    Correct Answer
    B. A woman who teaches piano lessons to 1-5 students per week
    Explanation
    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.

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  • 16. 

    The customer must typically submit a receipt or appraisal completed within the last 5 years when scheduling property value over:

    • A.

      $5,000

    • B.

      $10,000

    • C.

      $8,000

    • D.

      Scheduled items of any value must be supported with a receipt

    Correct Answer
    A. $5,000
    Explanation
    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.

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  • 17. 

    When processing a payment directly to ESCROW the customer is responsible for:

    • A.

      Informing the mortgage company of a switch of insurance and signing all paper documents

    • B.

      The initial down-payment only

    • C.

      The customer does not have to take any cation whatsoever after binding a policy through ESCROW

    • D.

      The initial down-payment and signing all paper documents

    Correct Answer
    A. Informing the mortgage company of a switch of insurance and signing all paper documents
    Explanation
    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.

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  • 18. 

    Through Travelers Insurance we are able to offer the following products:(Check all answers that apply)

    • A.

      Silver Home

    • B.

      Gold Home

    • C.

      Platinum Home

    • D.

      Silver Condo

    • E.

      Gold Condo

    • F.

      Silver Renters

    • G.

      Gold Renters

    Correct Answer(s)
    B. Gold Home
    C. Platinum Home
    E. Gold Condo
    G. Gold Renters
    Explanation
    We do not write any Silver Travelers products through Goji

    Rate this question:

  • 19. 

    With regards to protection class:

    • A.

      Safeco requires a PC of 8B or below AND a fire hydrant within 1,000ft of the home

    • B.

      Safeco requires a PC of 8B or below OR a fire hydrant within 1,000ft of the home

    • C.

      Safeco will accept alternate water sources such as a pond or creek in lieu of a fire hydrant

    • D.

      Safeco will not write the home if the fire department is staffed by volunteers

    Correct Answer
    A. Safeco requires a PC of 8B or below AND a fire hydrant within 1,000ft of the home
    Explanation
    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

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  • 20. 

    What is our goal during the initial carrier software quote?

    • A.

      To see if the customer qualifies for the home product

    • B.

      To learn the protection class of the home

    • C.

      To qualify the home instead of using the home portal

    • D.

      To find out the age of the home

    Correct Answer
    A. To see if the customer qualifies for the home product
    Explanation
    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

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  • 21. 

    Which of these claims would be factored into the client's premium when quoting ASI?

    • A.

      Only the hail claim

    • B.

      Only the wind claim

    • C.

      Both the wind and hail claims

    • D.

      Neither claim counts against the customer in ASI

    Correct Answer
    D. Neither claim counts against the customer in ASI
    Explanation
    ASI accepts any amount of claims if those claims are weather related. These claims do not count against the customer in any way.

    Rate this question:

  • 22. 

    What claims should we ask about?

    • A.

      Any claims with a payout

    • B.

      All claims that appear on the CLUE report

    • C.

      Any claims without a payout

    • D.

      Any open claims

    • E.

      None of the answers are correct

    Correct Answer
    B. All claims that appear on the CLUE report
    Explanation
    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

    Rate this question:

  • 23. 

    When trying to figure out the foundation type of the home, we should...

    • A.

      None of answers are correct

    • B.

      Base it on the year built

    • C.

      Base it on the area

    • D.

      Use the preset defaults

    • E.

      Only use 3rd party sites such as Zillow

    Correct Answer
    A. None of answers are correct
    Explanation
    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

    Rate this question:

  • 24. 

    What is the first step of determining the construction style of a home?

    • A.

      Ask the customer

    • B.

      Look at Zillow

    • C.

      Base it on the area

    • D.

      Go with what the carrier pulls up

    • E.

      None of the answers are correct

    Correct Answer
    A. Ask the customer
    Explanation
    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.

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  • 25. 

    Coverage C should only be changed if

    • A.

      The customer has more property than the set limit

    • B.

      You have discussed it with the customer

    • C.

      The customer has less property than the set limit

    • D.

      All of the answers are correct

    • E.

      None of the answers are correct

    Correct Answer
    D. All of the answers are correct
    Explanation
    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.

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  • 26. 

    Coverage A should be soley based on

    • A.

      The carrier estimator

    • B.

      What the customer requests

    • C.

      The prior coverage A limit

    • D.

      The market value of the home

    • E.

      None of the answers are correct

    Correct Answer
    A. The carrier estimator
    Explanation
    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

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  • 27. 

    Business exposures (in-home business) in Travelers can be eligible if:

    • A.

      The agent calls Travelers Underwriting

    • B.

      The business is open 3 days a week

    • C.

      Has minimal foot traffic

    • D.

      None; Travelers will not write any policy with business exposure

    Correct Answer
    A. The agent calls Travelers Underwriting
    Explanation
    All eligible in-home business risks are writable only after verifying with Travelers underwriting

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  • 28. 

    The Travelers Enhanced home package does not have the following coverage:

    • A.

      Earthquake

    • B.

      Lock Replacement

    • C.

      Personal Injury

    • D.

      Increased loss assessment

    Correct Answer
    A. Earthquake
    Explanation
    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.

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  • 29. 

    Which is not a Safeco knockout factor?

    • A.

      Open foundation

    • B.

      Mobile / metal frame

    • C.

      1500 feet from a fire hydrant

    • D.

      Home built in 1922

    Correct Answer
    D. Home built in 1922
    Explanation
    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.

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  • 30. 

    What is not an excluded business in Safeco?

    • A.

      Customer runs a daycare with no employees

    • B.

      Lawyers/Doctors

    • C.

      Hairdresser

    • D.

      Business risks are unacceptable in Safeco

    Correct Answer
    A. Customer runs a daycare with no employees
    Explanation
    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

    Rate this question:

  • 31. 

    When do you manually enter claims in Safeco?

    • A.

      Anything over $0

    • B.

      All claims

    • C.

      Never

    • D.

      When there are no losses

    Correct Answer
    A. Anything over $0
    Explanation
    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

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  • 32. 

    ASI is better fit for good credit customers with:(Select ALL correct answers)

    • A.

      Lots of weather claims

    • B.

      No Fire Hydrant within 1000ft

    • C.

      No Prior for 45 days

    • D.

      PC-9 or above

    Correct Answer(s)
    A. Lots of weather claims
    B. No Fire Hydrant within 1000ft
    D. PC-9 or above
    Explanation
    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

    Rate this question:

  • 33. 

    What endorsement decreases premium in ASI?

    • A.

      Limited water damage

    • B.

      Loss assessment

    • C.

      Ordinance or law

    • D.

      Water backup

    Correct Answer
    A. Limited water damage
    Explanation
    The limited water damage endorsement actually reduces policy coverage. As such, it leads to a reduced premium

    Rate this question:

  • 34. 

    Which carrier requires an e-signature for home policies?

    • A.

      ASI

    • B.

      Travelers

    • C.

      Safeco

    • D.

      None

    Correct Answer
    A. ASI
    Explanation
    ASI requires an e-signature for home policies.

    Rate this question:

  • 35. 

    Why does an agent not ask leading questions in writing a home policy?

    • A.

      Leading now means cancellation later

    • B.

      Leading now means missing out on discounts later

    • C.

      You should always lead the customer

    • D.

      Leading now means going through software faster

    Correct Answer
    A. Leading now means cancellation later
    Explanation
    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.

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  • 36. 

    No matter the carrier, what do you do once you run a C.L.U.E. quote?

    • A.

      Ask about all claims, even $0 claims

    • B.

      Ask about all claims, except $0 claims

    • C.

      Quote the rate

    • D.

      Ignore report because it would have already kicked you out if there was a problem

    Correct Answer
    A. Ask about all claims, even $0 claims
    Explanation
    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

    Rate this question:

  • 37. 

    Why would an agent lower Coverage B on a home policy?

    • A.

      Only has a driveway

    • B.

      Has a pool

    • C.

      Has an art collection

    • D.

      Never lower Coverage B

    Correct Answer
    A. Only has a driveway
    Explanation
    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

    Rate this question:

  • 38. 

    If the customer doesn't respond to the home carrier's welcome communication, what will happen to the policy?

    • A.

      Cancellation

    • B.

      Uprate

    • C.

      Nothing

    • D.

      Company will keep calling until it gets a response

    Correct Answer
    A. Cancellation
    Explanation
    If the customer doesn't respond to the home carrier's welcome communication, the policy will be cancelled.

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  • 39. 

    Who are the "interested parties" in a new home closing?(Select ALL correct answers)

    • A.

      Inspector

    • B.

      Loan Processor

    • C.

      Mortgage Officer

    • D.

      Insurance Agent

    • E.

      Underwriter

    Correct Answer(s)
    A. Inspector
    B. Loan Processor
    C. Mortgage Officer
    Explanation
    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

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  • 40. 

    On a new home closing, what document should you get to help quote the policy?

    • A.

      Inspection report

    • B.

      Mortgagee Clause

    • C.

      Prior home insurance declaration page

    • D.

      Loan document

    Correct Answer
    A. Inspection report
    Explanation
    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

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  • 41. 

    Check ALL items that effect a home's replacement cost

    • A.

      Debris removal

    • B.

      Materials

    • C.

      Market value

    • D.

      Permit cost

    • E.

      Mortgage fees

    Correct Answer(s)
    A. Debris removal
    B. Materials
    D. Permit cost
    Explanation
    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

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  • 42. 

    What can happen if an agent writes a home policy that vastly under-insures the home?

    • A.

      Claims may be reduced even if the claim is lower than the limit of liability

    • B.

      Claims may be denied even if the claim is lower than the limit of liability

    • C.

      The claim will be paid but is subject to an additional coinsurance payment by the insured

    • D.

      The underwriter will correct it and no problems will arise

    Correct Answer
    A. Claims may be reduced even if the claim is lower than the limit of liability
    Explanation
    When we under-insure a home, all claims may be subject to a penalty, even if the policy provides enough coverage for the claim

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  • 43. 

    What type of home is displayed in the picture?

    • A.

      Manufactured home

    • B.

      Ranch

    • C.

      Raised Ranch

    • D.

      Cape Cod

    Correct Answer
    A. Manufactured home
    Explanation
    Manufactured homes are unable to be insured through our standard and preferred home carriers

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  • 44. 

    We can not write a home insurance policy if the insured owns a chihuahua

    • A.

      True, if the chihuahua has any bite history

    • B.

      True, Goji can not write policies where a dog is present

    • C.

      False, chihuahuas can never affect the home policy

    • D.

      False, if the chihuahua has not been spayed and neutered

    Correct Answer
    A. True, if the chihuahua has any bite history
    Explanation
    Regardless of breed, any animal with a bite history makes the risk unable to be insured

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  • 45. 

    Which of these policy choices structures the policy exclusively for total losses?

    • A.

      Choosing a high deductible

    • B.

      Choosing a low deductible

    • C.

      Choosing no deductible ($0 deductible)

    • D.

      Underinsures the value of the home

    Correct Answer
    A. Choosing a high deductible
    Explanation
    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

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  • 46. 

    The insured makes candles as an incidental business in his garage. In a fire caused by lightning strike, the garage burns down. The insured’s candle-making tools will:

    • A.

      Be covered up to $2,500

    • B.

      Be covered up to $1,500

    • C.

      Be covered up to the limit of coverage C

    • D.

      Not be covered by his insurance because it is a business

    Correct Answer
    A. Be covered up to $2,500
    Explanation
    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.

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  • 47. 

    All of the following are common additional/other coverages except:

    • A.

      Worldwide Coverage C

    • B.

      Reasonable Repairs

    • C.

      Property Removed

    • D.

      Identity Fraud Protection

    Correct Answer
    D. Identity Fraud Protection
    Explanation
    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

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  • 48. 

    Of the following carriers ASI, Safeco, & Travelers, which offer incidental business endorsements?

    • A.

      ASI, Safeco, & Travelers

    • B.

      ASI & Safeco

    • C.

      Safeco & Travelers

    • D.

      ASI & Travelers

    Correct Answer
    C. Safeco & Travelers
    Explanation
    Safeco and Travelers are the carriers that offer incidental business endorsements.

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  • 49. 

    Which Homeowner form comes standard with replacement cost of contents at no additional cost?

    • A.

      HO-02

    • B.

      HO-03

    • C.

      HO-04

    • D.

      HO-05

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

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