Chapter 10 - Miscellaneous Personal Insurance
Support for FSS team to take INS Exam
- 1.
What is the standard deductible under the regular program of the National Flood Insurance Program?
- A.
$1,000
- B.
$500
- C.
$250
- D.
$100
Correct Answer
B. $500Explanation
B is correct. The standard deductible is $500 under the regular program and $1,000 under the emergency program. Higher deductibles are available.Rate this question:
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- 2.
Who administers the NFIP?
- A.
State insurance department
- B.
Federal government
- C.
Private insurance companies
- D.
The National Association of Insurance Commissioners
Correct Answer
B. Federal governmentExplanation
B is correct. The federal government created the NFIP to make Flood insurance available to eligible communities through federal subsidization. It is managed by the Federal Insurance Administration.Rate this question:
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- 3.
What is the maximum amount of coverage that can be purchased for a single-family home under the emergency Flood insurance program?
- A.
$35,000 for buildings and $10,000 for contents
- B.
$250,000 for buildings and $100,000 for contents
- C.
$100,000 for buildings; contents coverage is not available under the emergency program
- D.
$100,000 for contents; building coverage is not available under the emergency program
Correct Answer
A. $35,000 for buildings and $10,000 for contentsExplanation
A is correct. When the regular program goes into effect, additional coverage can be purchased: up to $250,000 for building coverage and up to $100,000 for contents.Rate this question:
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- 4.
Coverage for earthquake losses is which of the following?
- A.
Included in an unendorsed Dwelling or homeowners policy
- B.
Provided by the federal government
- C.
Available by adding an endorsement to the Dwelling or homeowners policy
- D.
Available by purchasing a separate policy
Correct Answer(s)
C. Available by adding an endorsement to the Dwelling or homeowners policy
D. Available by purchasing a separate policyExplanation
C and D are correct. Dwelling and homeowners policies do not cover the earthquake peril. This coverage is provided by adding an endorsement to the Dwelling or homeowners policy or buying a separate policy.Rate this question:
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- 5.
Mobile home policies include which of the following?
- A.
Include Liability coverage that is similar to Section II of the homeowners policy
- B.
Might include collision coverage
- C.
Cover the mobile home unit, but not its contents
- D.
Do not cover additional living expenses
Correct Answer(s)
A. Include Liability coverage that is similar to Section II of the homeowners policy
B. Might include collision coverageExplanation
A and B are correct. Mobile home policies include coverage for contents and additional living expenses.Rate this question:
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- 6.
Adequate coverage for large, powerful boats is provided by which of the following?
- A.
A homeowners policy
- B.
A homeowners policy with the Watercraft endorsement attached
- C.
Specialized personal watercraft policies, such as Outboard Motor and Boat, Boatowners, or Personal Yacht policies
- D.
The reinsurance component of FAIR Plans
Correct Answer
C. Specialized personal watercraft policies, such as Outboard Motor and Boat, Boatowners, or Personal Yacht policiesExplanation
C is correct. A homeowners policy provides only limited coverage for watercraft. Property coverage is subject to a special limit of $1,500, and coverage can be totally excluded for certain perils. Liability coverage is excluded for boats with motors of more than specified horsepower or boats of more than a specified length. Insureds typically need more coverage for this exposure than that provided by a homeowners policy, particularly those who own larger or more powerful boats. This coverage can be provided through Inland Marine forms, Ocean Marine policies, or specialized policies.Rate this question:
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- 7.
A typical Outboard Motor and Boat policy provides which of the following coverages?
- A.
Liability
- B.
Medical Payments
- C.
Physical Damage
- D.
All of the above
Correct Answer
C. Physical DamageExplanation
C is correct. This insurance is written to cover the physical damage exposure of boats. It is commonly provided under open peril Inland Marine floaters.Rate this question:
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- 8.
Under a National Flood Insurance policy, losses to which of the following could be paid on a replacement cost basis?
- A.
Personal property
- B.
Single family homes
- C.
Mobile homes
- D.
Both A and B
Correct Answer
B. Single family homesExplanation
B is correct. Single-family dwellings (other than mobile homes) are the only buildings that can be insured on a replacement cost basis under a flood policy. All other losses are paid on an actual cash value basis.Rate this question:
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- 9.
Unless an exception applies, when does coverage under an NFIP policy begin?
- A.
As soon as the gross policy premium is received
- B.
Five days after the application and premium payment are mailed
- C.
Thirty days after the date of application
- D.
On the date the flood insurance application is mailed
Correct Answer
C. Thirty days after the date of applicationExplanation
C is correct. Unless an exception applies, coverage does not take effect until after a waiting period of 30 days following the date of application. Binders may not be issued during the waiting period to provide Flood coverage.Rate this question:
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- 10.
Which of the following losses are excluded under most Yacht policies?
- A.
Injury suffered by a passenger in a waterskiing accident
- B.
Collision damage to another boat for which the insured is liable
- C.
Both A and B
- D.
Neither A nor B
Correct Answer
A. Injury suffered by a passenger in a waterskiing accidentExplanation
A is correct. The collision clause on a Yacht policy covers the insured's liability for collision damage to other vehicles. The waterskiing clause commonly excludes coverage for any person skiing or otherwise being towed by the vessel until they are back on board or have landed safely somewhere.Rate this question:
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Current Version
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Mar 16, 2023Quiz Edited by
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Feb 25, 2009Quiz Created by
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