Risk Management

Business

Quiz 13 :

Multirisk Management Contracts: Homeowners

Quiz 13 :

Multirisk Management Contracts: Homeowners

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Flood insurance under the regular program is available only to communities that have passed required ordinances and have undergone studies by the Army Corps of Engineers.
Free
True False
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True

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An umbrella liability policy is a substitute for adequate basic coverage with reasonable limits.
Free
True False
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False

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In a homeowners policy, 'Coverage B-Other Structures' insures any structure used for business purposes or rented to any person not a tenant of the dwelling.
Free
True False
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False

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Actual cash value is equal to the replacement cost only when depreciation is zero.
True False
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Claim expenses refer generally to costs associated with litigation, such as premiums on bonds and prejudgment interest assessed against the insured, other than the actual cost of defense.
True False
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A title insurance policy protects the home buyer against loss caused by defects that come into existence after the policy is issued.
True False
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When coverage is on an open-perils basis, all events not excluded from coverage are included.
True False
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The insuring agreements, exclusions, and conditions for Section II of the declarations page in a homeowners policy are the same for all forms.
True False
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Redlining allegations have the potential to tarnish an insurer's reputation
True False
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In a homeowners policy, the policy form is the substance of the contract, spelling out the specific coverage provisions.
True False
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Following the declarations page, the balance of each form is divided into two sections.Section I includes personal liability coverage for you and medical payments to others.
True False
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Personal liability coverage in a homeowners policy is on a named perils basis.
True False
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Flood insurance provides coverage for structures and personal property or contents on a replacement cost basis.
True False
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Homeowners policies differ from automobile policies in that they combine several types of coverage into one policy.
True False
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Umbrella policies pay only after the limits of underlying coverage, such as auto or homeowners policy, have been exhausted.
True False
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The basic amount for Section II (coverages E and F) is the same for all forms and cannot be increased with the payment of additional premium.
True False
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Loss of use coverage applies to personal property owned by others while it is "on the part of the residence premises occupied by an insured" and to property of guests and residence employees while at any residence occupied by an insured.
True False
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Paying an extra premium amount to have the main policy's limit for a particular category of personal property increased leaves your coverage on an open perils basis rather than changing it to named-perils.
True False
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'Coverage E-Personal Liability' covers nonphysical personal injury such libel.
True False
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Unlike the open perils protection for the dwelling and other structures, personal property is covered against direct loss on a named perils basis.
True False
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