Quiz 12

In a standard homeowner's insurance policy, what is Coverage D commonly known as?

What valuation method refers to the cost of constructing an exact duplicate of a property at a certain date?

Which of the following terms is used to describe an insurance policy that provides additional liability coverage above the limits of a primary policy?

What is 'Coverage B' typically referred to in a standard homeowner's insurance policy?

In standard homeowner's insurance policies, what is the term for 'Dwelling coverage'?

Which method of valuing insured property considers depreciation when determining the value?

What is the designation for the 'Market Value Policy'?

In a standard homeowner's insurance policy, what is 'Personal Property Coverage' also known as?

What type of insurance policy provides coverage above and beyond the limits of a primary policy, only paying out after losses exceed a specified amount?

Which coverage is referred to as 'Other structure's coverage'?

What type of coverage typically includes protection for damages to the insured's dwelling and any structures attached to it?

Which valuation method is commonly used to determine the current value of a property, taking into account market conditions and recent sales of comparable properties?

Which type of insurance policy is designed to provide comprehensive coverage for a broad range of perils, offering more extensive protection than basic policies?

What does 'loss of use' in a homeowner's policy primarily cover?

What is a 'deductible' in an insurance policy?

If a homeowner's policy has a 'replacement cost' provision, how is the loss typically settled?

What is the main purpose of a liability coverage in the homeowner's insurance policy?

What does the term 'named peril' refer to in an insurance policy?

When determining actual cash value, what factor is considered?

What is the primary difference between an HO-3 and an HO-5 policy?

A homeowner has Coverage A limits of $200,000. A fire causes $50,000 damage to the dwelling and $10,000 damage to a detached garage. Assuming no deductible, how much will the policy likely pay for the detached garage damage?

A homeowner has an unendorsed policy with $300,000 in coverage A. A fire damages the home, resulting in $50,000 in dwelling damages, $40,000 in personal property damage, and $15,000 in additional living expenses. Assuming no deductible, what is the most the insurer will pay?

A tree falls on a detached garage. The garage is worth $20,000 and the homeowner's policy has Coverage B limits. What must be true for the garage to be covered?

A homeowner who is sued for an injury chooses to not appear in court, so the decision goes against them. How is their coverage affected?

What does the term 'indemnify' mean in the context of insurance?

To purchase homeowner's insurance, a renter may purchase what type of HO policy?

Which of the following would not qualify for Coverage B?

Who is considered the first party in an insurance legal contract?

A policyholder is not being truthful on their insurance application. Which legal term describes this?

Which one of these is not one of the four parts of an insurance contract?

While investigating a claim, an adjuster discovers the insured made false statements on their application. How can this affect the policy?

Which of the is true about a warranty in an insurance policy?

An insurance agreement transfers risk from one party to another. This can be described as what?

The cause of loss is referred to as what?

What type of hazard arises from the characteristics or traits of an individual?

If someone leaves their doors unlocked, increasing the chances of theft, what kind of hazard is this?

If a business is located on a flood plane, this increases its chance of flooding. What risk management technique addresses this?

Installing a sprinkler system is an example of which risk management technique?

If someone has a very high deductible, what risk management technique are they employing?

For the principle of indemnity to work, the insured must have a financial stake with what they are insuring. What is this called?

Which of the following is an example of express authority?

An agent that is able to bind an insurance company has what type of authority?

An agent does not have the explicit authority to do something, but it is reasonable for the customer to assume that the agent can do it. What authority does the agent have?

During the insurance application process, what duty does an insurance applicant have?

Coverage D

Replacement Cost

Umbrella Policy

Coverage B

Coverage A

Actual Cash Value

HO-8

Coverage C

Umbrella Policy

Coverage B