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3 - A Standard Fire Policy & Homeowners questions with complete solutions
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3 - A Standard Fire Policy & Homeowners questions with complete solutions
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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
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