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Other Personal Lines Policies Exam Questions And 100% Correct Answers
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Other Personal Lines Policies Exam Questions And100% Correct Answers
Annual transit policies are written on what type of basis?
A Temporary
B Open-peril
C Reduced liability
D Named peril Answer D Named peril
correct! Annual transit policies Annual transit policies are utilized when businesses ship
goods on a regular basis. A business can write coverage for most all types of shipments.
These policies are written on a named peril basis.
If an umbrella policy is broader than underlying insurance and it pays a loss that is not
covered by the underlying policy, it usually pays only:
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 An insurance policy providing coverage for earth movement may be sold for
residential property only by those agents who maintain an "earth movement certificate"
issued through the department of insurance. All others must refer their clients to
appropriately licensed agents for the sale.
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 that
specifically provides coverage for loss or damage caused only by the peril of
earthquake by itself.
D Residential property insurance policy may cover the peril of earthquake either alone
or in combination with - Answer A Only authorized agents who hold an "earth movement
certificate" through the department of insurance can market residential property
insurance that provide cover for earth movement.
correct! No extra certificate is needed to offer earth movement coverage.
Among the Nationwide Marine Definitions, the following are perils that may be the
subject of inland marine insurance EXCEPT
A Property while at a warehouse.
B Shipments via freight train.
C Cargo going by truck.
D Large pleasure boats. - Answer D Large pleasure boats.
correct! Large pleasure boats will not be covered under Inland Marine Coverage. They
would be covered instead under 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 as under: 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! Since the fire in the fireplace is a "friendly fire", the policy would pay nothing.
There is coverage for damage from smoke of a hostile fire 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! Most standard property forms exclude earthquakes, but coverage for can be
added by endorsement on 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
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