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RIBO Insurance Course Practice Questions Week 4 questions with Correct Answers
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RIBO Insurance Course Practice Questions Week 4 questions with Correct Answers
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RIBO Insurance Course Practice Questions Week 4questions with Correct Answers
Mary lives in a townhouse unit that she rents. A fire in the unit next door
also damages Mary's unit. The damage is significant and Mary will have
to move out while it is being repaired. Which tenants policy section will
cover the cost of providing her with a temporary place to live?
Select one:
a. Property contents
b. Additional living expenses
c. Accident benefits
d. Liability insurance Correct Answer-b. Additional living expenses.
Similar to homeowners' insurance, a tenants policy carries some
coverage for ALE (Additional Living Expenses) if the home is damaged
and the tenant has to temporarily live elsewhere during the repairs.
Which information is requested on the application for tenants insurance
policy?
Select one:
a. The coverage limit of the dwelling building
b. The number of rental units are in the building
c. The name of the original contractor
d. An inventory of all personal property Correct Answer-b. The number
of rental units are in the building. The application for a tenants policy
asks for similar information as an application for a Homeowners policy.
,The same underwriting factors will affect the desirability and rate
charged for the risk, including the number of rentail units in the
building.
Which tenants policy extensions of coverage is defined as indirect
damage resulting from physical damage to dwelling by an insured peril
causing a change in temperature?
Select one:
a. Loss due to temperature change
b. Property temporarily removed
c. Additional living expenses
d. Vandalism and malicious mischief Correct Answer-a. Loss due to
temperature change. Under a tenants policy, extensions of coverage
include property temporarily removed, loss due to temperature change,
and coverage on watercraft.
In a tenants policy where will you find coverage for property
temporarily removed?
Select one:
a. Amount of Insurance
b. Exclusions
c. Additional Living Expenses
d. Extensions of Coverage Correct Answer-d. Extensions of Coverage
Under a tenants policy, extensions of coverage include property
,temporarily removed, loss due to temperature change, and coverage on
watercraft.
How is the limit for additional living expense established in a tenants
policy?
Select one:
a. Aa a dollar amount requested by the insured
b. As a percentage of the personal property insurance limit
c. As a dollar amount requested by the insurer
d. As apercentage of the value of the dwelling building Correct Answer-
b. As a percentage of the personal property insurance limit. An
additional living expense insurance limit under a tenants policy is equal
to a percentage of the personal property insurance limit, usually 20%.
For the homeowner's policy, it is a percentage of the dwelling building
insurance limit.
What is one reason tenants need insurance when they do not own the
dwelling building?
Select one:
a. To add additional living expenses
b. They might decide to buy the building later
c. For the cost of repairing and replacing damage
d. Lease agreements require the tenant to carry insurance Correct
Answer-d. Lease agreements require the tenant to carry insurance.
, Although renters do not need insurance for dwelling building, they do
need insurance for their personal property and personal liability.
Frequently landlords require proof of insurance as part of their lease
agreements.
What do condominium unit purchasers own?
Select one:
a. Clear and full ownership of a specific unit within a building and a
shared interest in the common elements
b. Clear and full ownership of a specific unit within a building and full
ownership of the common elements
c. Shared interest in a specific unit within a building and a shared
interest in the common elements
d. Shares in a corporation that owns the condominium building Correct
Answer-a. Clear and full ownership of a specific unit within a building
and a shared interest in the common elements. A purchaser of a
condominium acquires clear and full ownership of a specific unit within
a building and a shared interest in the common elements, such as
structural columns, beams, floors, walls, elevators, hallways, utilities,
recreational facilities, parking areas, gardens, and land.
In which situation would a condominium unit owner's loss assessment
coverage apply?
Select one:
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