Other Personal Lines Policies. Exam Questions And Answers 100% Pass
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Course
Personal Lines
Institution
Personal Lines
Other Personal Lines Policies. Exam
Questions And Answers 100% Pass
Annual transit policies are written on what kind of basis?
A Temporary
B Open-peril
C Reduced liability
D Named peril - answerD Named peril
correct! Annual transit policies are used by businesses that ship goods on a regular...
Other Personal Lines Policies. Exam
Questions And Answers 100% Pass
Annual transit policies are written on what kind of basis?
A Temporary
B Open-peril
C Reduced liability
D Named peril - answer✔D Named peril
correct! Annual transit policies are used by businesses that ship goods on a regular basis. Coverage can
be written for various types of shipments. These policies are written on a named peril basis.
When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by
the underlying policy, it usually only pays
A A percentage of the loss as described on the declarations.
B The excess over the self-insured retention.
C The amount specified in the policy under the additional coverage provisions.
D The amount in excess of the underlying policy deductible. - answer✔B The excess over the self-insured
retention.
correct! Retention is the equivalent of a deductible in property insurance.
All of the following are TRUE statements regarding the requirements of an insurer to offer earth
movement coverage in California EXCEPT
A Only authorized agents which hold an "earth movement certificate" through the department of
insurance are able to market residential property insurance which provides coverage for earth
movement.
B No policy of residential property insurance may be issued or delivered or initially renewed in this state
by any insurer unless the named insured is offered coverage for loss or damage caused by the peril of
earthquake.
C Coverage may be provided in the policy of residential property insurance which specifically provides
coverage for loss or damage caused only by the peril of earthquake by itself.
D Coverage may be provided in the policy of residential property insurance which specifically provides
coverage for loss or damage caused by the peril of earthquake alone or in combination with - answer✔A
Only authorized agents which hold an "earth movement certificate" through the department of
insurance are able to market residential property insurance which provides coverage for earth
movement.
correct! No additional certificate is required to market earth movement coverage.
According to the Nationwide Marine Definitions, risks that may be the subject of inland marine
insurance include all of the following EXCEPT
A Property while stored at a warehouse.
B Shipments made by freight train.
C Cargo transported by truck.
D Large pleasure boats. - answer✔D Large pleasure boats.
correct! Large pleasure boats will not be included in Inland Marine Coverage. They would instead be
covered in a boatowners policy, or, if large enough, under yacht insurance.
All of the following are classes of inland marine risks EXCEPT
A Domestic shipments and transportation risks
B Bridges, tunnels, and other instrumentalities of transportation and communication
C Common Carrier Cargo Liability
D Commercial property floater risks - answer✔C Common Carrier Cargo Liability
correct! The 4 classes of inland marine risks are the following: domestic shipments and transportation
risks; bridges, tunnels, and other instrumentalities of transportation and communication; commercial
property floater risks; and personal property floater risks.
Joe lit a fire in his fireplace and left it unattended. He had failed to check to see if the flue was open, so
the smoke entered the house and, in addition to discoloring the walls, ceiling, and drapes, Joe had to
hire a company to remove the smoke odor. The total expense of cleaning and repainting was $6,000.
How much would Joe's Standard Fire policy pay?
A Nothing
B $6,000, less the deductible
C The policy would pay for repainting and cleaning of the drapes, but not the removal of the smoke odor
D Because the loss was caused by Joe's deductible, the policy would pay only 50% - answer✔A Nothing
correct! Because a fire in the fireplace is a "friendly fire", the policy would pay nothing. Damage from
smoke of a hostile fire is covered, but not from a friendly fire.
Which of the following terms best describes a trembling or shaking of the earth that is volcanic or
seismic in origin?
A Earthquake
B Tectonic shifting
C Tsunami
D Geotectonic inversion - answer✔A Earthquake
Correct! Earthquakes are excluded by most standard property forms, but coverage for may be added by
endorsement to most property policies. Coverage may also be written in a Difference in Conditions
policy.
The Standard Fire Policy is a named perils contract, which means
A All perils covered must be added through endorsements.
B Only perils listed in the policy are covered.
C It covers losses for any peril.
D It covers the peril in its name under any circumstances. - answer✔B Only perils listed in the policy are
covered.
correct! Named perils contracts cover only those perils specified in the policy
The New York Standard Fire Policy is classified as "Standard" because
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