Homeowners Policy Coverage Quiz
30 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What happens if the insured wants someone else to do repair work according to the text?

  • The insured forfeits the insurance (correct)
  • The insured must pay a fee to choose someone else
  • The insurer will allow it without any consequences
  • The insured can only choose from a list of approved repair professionals
  • What does the insurer have the option of deciding regarding indemnity delivery?

  • The repair professional to be used
  • The method of payment (correct)
  • The replacement item
  • The repair process
  • For which of the following items does a limit apply only when stolen and not when damaged in an explosion?

  • Computer software (correct)
  • Jewelry
  • Garden tractors
  • Watercraft
  • Which statement is NOT true of all risks policies?

    <p>Insurance is against all risks of direct loss or damage</p> Signup and view all the answers

    Which of the following is included in the Property Coverages of the Homeowners Basic Form?

    <p>Dwelling Building, Personal Property and Seasonal Residence.</p> Signup and view all the answers

    What is TRUE of the Fine Arts endorsement?

    <p>Provided professional packing supplies are used, coverage will not be affected if the insured packs his fine art himself when he moves.</p> Signup and view all the answers

    Which type of property damage would not be covered by Voluntary Property Damage in a Homeowners policy?

    <p>Intentional damage done by a fourteen year old</p> Signup and view all the answers

    In a liability policy, what does coverage generally apply to?

    <p>Being found legally liable for bodily injury or property damage</p> Signup and view all the answers

    What is a benefit of a written insurance application?

    <p>Reduce the risk of inaccuracies when collecting information</p> Signup and view all the answers

    Which coverage under the Homeowners policy would apply to the accidental damage caused by the insured's ten-year-old son to a guest's camera?

    <p>Contents coverage</p> Signup and view all the answers

    Who has insurable interest in the case of a coffee shop damaged by fire?

    <p>The coffee distributor who is unable to sell coffee beans to the shop until it re-opens</p> Signup and view all the answers

    What are the different types of professional liability insurance coverage?

    <p>Errors and omissions, professional liability and directors and officers liability</p> Signup and view all the answers

    What is the proximate cause of loss in insurance?

    <p>The immediate and effective cause of the loss</p> Signup and view all the answers

    Under Comprehensive personal liability, which scenario would likely be covered?

    <p>A guest tripping on a loose step in your home and injuring herself</p> Signup and view all the answers

    Which of the following best describes the original purpose of insurance companies mentioned in the text?

    <p>To provide mutual aid to policyholders</p> Signup and view all the answers

    What does a Commercial General Liability policy cover?

    <p>Premises and operations liability only</p> Signup and view all the answers

    Why do insurance companies have extensive engineering and training facilities?

    <p>To ensure better risk assessment and claims handling</p> Signup and view all the answers

    What is one duty of a general agent as mentioned in the text?

    <p>Appoint other agents in the assigned province(s)</p> Signup and view all the answers

    What does the inspection condition under the general conditions for fire policies in Quebec obligate the insurer to do?

    <p>Inspect the premises for purposes other than insurance</p> Signup and view all the answers

    Which duty is NOT included in the duties of a risk manager?

    <p>Acting as an in-house legal counsel</p> Signup and view all the answers

    What is a special program approved by government regulators to protect policyholders from the financial collapse of an insurer?

    <p>Global Risk Management</p> Signup and view all the answers

    What happens if the insured benefits from recovery available due to another party's negligence?

    <p>Title to the property transfers to the insurer</p> Signup and view all the answers

    What does empathy require according to the text?

    <p>Understanding others' feelings and perspectives</p> Signup and view all the answers

    In what circumstances does the insurer need a court order to use a recovery from a responsible party?

    <p>To subrogate a right to recover from another responsible person</p> Signup and view all the answers

    What is the deductible amount under Specified Perils in the policy?

    <p>$300</p> Signup and view all the answers

    What would Smith's insurer pay for the damage to Brown's automobile if Smith carries Collision on his own automobile?

    <p>$0</p> Signup and view all the answers

    In the Additional Agreements of the insurer, what situation would lead to the insured reimbursing the insurer?

    <p>Insurer having to pay due to a statute relating to automobile insurance</p> Signup and view all the answers

    Under Loss of Use due to Theft, when does the reimbursement end?

    <p>Upon either (a) or (b) above, whichever comes first</p> Signup and view all the answers

    Who would be responsible for an accident if John Smith is driving Robert Brown's automobile as a temporary substitute and causes damage?

    <p>John Smith</p> Signup and view all the answers

    Which scenario could potentially be covered as a newly acquired vehicle?

    <p>Smith purchases a new car and informs the insurer within 30 days</p> Signup and view all the answers

    Study Notes

    Subrogation

    • The insurer is subrogated to the insured's right to recover the same loss from another person who may be legally responsible
    • The insurer must obtain a court order to use any recovery from the responsible party to offset the claim paid
    • The insured retains the right to benefit from any recovery available because of another party's negligence

    Inspection Condition

    • The purpose of the inspection condition under the general conditions for fire policies in Quebec is to state that where the insurer makes an inspection, it does not constitute a warranty that the premises are safe or healthful or comply with laws, codes, or standards

    Risk Management

    • The duties of a risk manager do not include acting as an in-house legal counsel
    • A risk manager's duties include identifying loss exposures, educating other corporate managers, and financing loss

    Insurance Protection

    • A special program approved by government regulators to protect policyholders from the financial collapse of an insurer is the Property and Casualty Insurance Compensation Corporation (PACICC)
    • Facility association is not a program to protect policyholders from the financial collapse of an insurer

    Empathy

    • Empathy requires understanding and sharing the feelings of another

    Insurance Claims

    • The insurer has the option of deciding how indemnity will be delivered
    • The insurer decided on who will do any repair work – if the insured wants someone else, he forfeits the insurance

    All Risks Policies

    • All risks policies provide insurance against all risks and all types of damage
    • The extent of coverage is determined by the exclusions
    • Anything that is not specifically excluded is covered
    • Insurance is against all risks of direct loss or damage

    Homeowners Policy

    • The Property Coverages of the Homeowners Basic Form include Dwelling Building, Detached Private Structures, Personal Property, and Additional Living Expense
    • The Fine Arts endorsement requires valuations done by qualified experts
    • Voluntary property damage would not respond to intentional damage done by a fourteen-year-old

    Liability Policy

    • A liability policy covers you for causing bodily injury or property damage
    • A liability policy does not cover intentional acts

    Professional Liability Insurance

    • Errors and omissions, professional liability, and directors and officers liability are types of professional liability insurance coverage

    Commercial General Liability Policy

    • A Commercial General Liability policy covers premises and operations liability

    Written Insurance Application

    • A written insurance application assists new agents and brokers with accurate note-taking
    • A written insurance application helps the insurer decide whether commission is payable
    • A written insurance application serves as a checklist for adjusters when settling a claim
    • A written insurance application reduces the risk of inaccuracies when collecting information

    Insurable Interest

    • The bank that holds a mortgage on the building in which the coffee shop is located has an insurable interest
    • The coffee distributor who is unable to sell coffee beans to the shop until the shop re-opens does not have an insurable interest
    • An employee who can't work at the store for 6 weeks during repairs has an insurable interest
    • A customer who has to walk further and pay more for coffee from a different coffee shop does not have an insurable interest

    Proximate Cause of Loss

    • The proximate cause of loss is the immediate and effective cause of the loss

    General Agent

    • One of the duties of a general agent is to appoint other agents in the assigned province(s)

    Insurance Policy

    • The policy shows a $300 deductible under Specified Perils, the insurer would pay $300
    • Under Additional Agreements of the insurer, the insurer agrees to pay court costs taxed against the insured and pay interest on the insured portion of judgements for damages against insureds awardee to plaintiffs
    • The insured will reimburse the insurer for any amounts the insurer has to pay because of a statue relating to automobile insurance that the insurer would not otherwise be liable to pay under the policy

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Test your knowledge on which section of a Homeowners policy will provide coverage for property damage scenarios involving children. Explore different scenarios and understand the coverage options available under a Homeowners policy.

    More Like This

    Homeowners Insurance
    3 questions

    Homeowners Insurance

    ResponsiveWoodland avatar
    ResponsiveWoodland
    Use Quizgecko on...
    Browser
    Browser