Exam (elaborations)
3 - A Standard Fire Policy & Homeowners questions with complete solutions
- Course
- Institution
3 - A Standard Fire Policy & Homeowners questions with complete solutions
[Show more]
Content preview
3 - A Standard Fire Policy &Homeowners
The declarations page will always provide a list of the coverages provided within the policy. What will be
listed next to each type of coverage on the declarations page?
A. The expiration date of the coverage
B. The name of the policyholder
C. The policyholder's obligations regarding that coverage
D. The insurer's limit of liability for that coverage - correct answer ✔✔D. The insurer's limit of liability for
that coverage
Stu has a collection or rare comic books. He wants to purchase theft insurance for his collection, separate
from his home and other property. What term most accurately describes the type of policy Stu would
purchase?
A. Actual cash value policy
B. Valuable papers policy
C. Monoline policy
D. Standard fire policy - correct answer ✔✔C. Monoline policy
Stan built a porch for his home three years ago at a cost of $10,000. The value of the porch has
depreciated by $6,000, and it would cost $12,000 to replace it today. After Stan's porch burnt down
during a BBQ today, how much would a standard fire policy indemnify Stan for his porch?
A. $10,000
B. $12,000
C. $6,000
D. $4,000 - correct answer ✔✔C. $6,000
,There are several terms that are often interchangeable with "endorsements." Which of the following is
NOT one of these terms?
A. Binders
B. Addendums
C. Riders
D. Attachments - correct answer ✔✔A. Binders
Under the requirements in case loss occurs provision, the insurer typically requires that the claimant
make a claim inventory form:
A. At the end of the settlement process
B. When he files a property claim
C. Only in the case of total loss
D. IN a commercial policy - correct answer ✔✔B. When he files a property claim
Which of the following statements does NOT apply to the standard fire policy?
A. It automatically covers wind and vandalism
B. It is a named peril policy
C. It pays actual cash value
D. It is the basis for all homeowners policies - correct answer ✔✔A. It automatically covers wind and
vandalism
Which of the following statements about the standard fire policy is TRUE?
A. It is an open peril policy
B. It is the basis of all property insurance policies
C. It offers coverage against wind and hail damage
, D. It offers replacement cost valuations - correct answer ✔✔B. It is the basis of all property insurance
policies
The standard fire policy divides a basic property insurance policy into _____ parts.
A. Four
B. Two
C. Three
D. Five - correct answer ✔✔A. Four
Which of the following statements does NOT apply to the standard fire policy?
A. It automatically covers wind and vandalism
B. It is the basis for all homeowners policies
C. It is a named peril policy
D. It pays actual cash value - correct answer ✔✔A. It automatically covers wind and vandalism
Which of the following statements is NOT true of endorsements?
A. An endorsed policy will always provide more coverage than an unendorsed policy
B. An endorsed policy has been changed from the original version
C. Endorsements may be added to a policy at any time during the policy period
D. Endorsements may be added to a policy at the time of purchase and at renewal - correct answer
✔✔A. An endorsed policy will always provide more coverage than an unendorsed policy
In which section of a standard fire policy would you find information on rules of conduct and obligations
the policyholder must follow in order for insurance coverage to apply?
A. Conditions
B. Declarations
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Sakayobako30. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83637 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now