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_CPP Chapter 5 - 14 Chapter Review
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_CPP Chapter 5 - 14 Chapter Review
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CPP Chapter 5 - 14 Chapter ReviewA building valued at $100,000 has a policy with an 80% coinsurance clause. The
minimum coverage needed to fully cover a $15,000 fire loss is:
a. $15,000
b. $50,000
c. $80,000
d. $100,000 - ANS-c. $80,000
A building with no occupants or contents is: - ANS-Vacant
A Business Income Coverage Form has a $100,000 limit of liability with a 25% monthly
limit of indemnity. If the insured loses $47,000 in a particular month, the most the policy
will pay for that month's losses is: - ANS-$25,000
A Business Income policy has a $10,000 limit of liability with a 25% monthly limit of
liability. The Business is destroyed by a covered peril. The actual loss of income was
$2,000 for the first month and $3,000 for the second month. The Business Income
policy will pay a total of how much for the two months? - ANS-The policy will pay $2,000
for the first month, and a maximum of 25% of the $10,000 for the second month.
($2,000 + $2,500 = $4,500)
A business is insured by a $400,000 BOP. If three trees valued at $600, $700, and $400
are destroyed by fire, the policy will pay how much? - ANS-$1,700
The limit per tree under the BOP is $1,000, with a maximum payment of $2,500 for all
trees. So, these trees are fully covered for a total of $1,700.
A car is destroyed by a hurricane. This is:
a. an accident
b. an occurrence - ANS-a. an accident
A DP-1 (Dwelling Policy -1) covers each of the following EXCEPT:
a. hail
b. explosion
c. fire and smoke
, d. earth movement - ANS-d. earth movement
A Fine Art Floater:
a. covers public art collections.
b. covers private art works. - ANS-b. covers private art works.
A homeowner policy requires notice of a loss to be given to each of the following
EXCEPT:
a. the credit card company if a credit card is stolen.
b. the police if a crime is involved.
c. the insurer.
d. other insureds. - ANS-d. other insureds.
A Mobile Home policy covers a detached garage:
a. to 20% of A
b. to 10% of A (with at least $2,000 coverage)
c. only by a rider, endorsement, separate policy
d. with no limit - ANS-b. to 10% of A (with at least $2,000 coverage)
A mobile home policy:
a. does not provide Section II liability coverage.
b. may provide Replacement Cost coverage for the structure if it is insured to 80% of
replacement cost. - ANS-b. may provide Replacement Cost coverage for the structure if
it is insured to 80% of replacement cost.
A mobile home policy:
a. Provides Replacement Cost coverage.
b. will pay $500 of the cost of transporting the mobile home to a new permanent
location.
c. May be used if the mobile home has at least 300 square feet.
d. May be used if the mobile home has at least 200 square feet. - ANS-a. Provides
Replacement Cost coverage
A person who owns jewelry worth over $50,000 should get what kind of floater? -
ANS-Personal Articles Floater
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