CISR PERSONAL LINES MISCELLANEOUS EXAM ACTUAL EXAM 100 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES

What is the Permitted Incidental Occupancies - Residence Premises HO 04 42 used for? - ....ANSWER...An other structure with an eligible incidental "business" exposure typically offices, schools, or studios. RATIONALE: The Limit of Liability & Description of Other Structure must be shown in the Schedule. Under a standard ISO Homeowners policy, what are the two Coverage C - Personal Property Special Limits of Liability that apply to property used primarily for business? - ....ANSWER...1 - $2,500.00 for personal property used primarily for "business" while on the "residence premises." 2 - $1,500.00 for personal property used primarily for "business" while away from the "residence premises" RATIONALE: *The limitations do not apply to property used occasionally for "business." What is the Increased Limits on Business Property HO 04 12 endorsement used for? - ....ANSWER...To increase the Special Limit of Liability for "business" (personal) property on the "residence premises" to a maximum of $10,000.00. What limit is the Special Limit of Liability automatically set to for property away from the "residence premises" under the Increased Limits on Business Property HO 04 12? - ....ANSWER...60% of the limit of property on the "residence premises." What does the Increased Limits on Business Property HO 04 12 not provide coverage on? - ....ANSWER...1 - "Business" property that pertains to a "business" actually conducted on the "residence premises." 2 - "Business" property in storage or held as a sample or for sale or delivery after a sale. What is the Permitted Incidental Occupancies - Residence Premises HO 04 42 endorsement used for? - ....ANSWER...Applies to personal property used in the "business" described in the Schedule & removes the $2,500.00 "business" limit for property on the "residence premises" for furnishings, supplies, and equipment. Property other than furnishings, supplies, and equipment is still limited to $2,500.00. Samples, inventory, and items sold but not delivered are limited. Under Coverage C - Personal Property, what are the three exclusions that pertain to "business" property? - ....ANSWER...1 - Property in an apartment regularly rented or held for rental to others by an "insured." 2 - Business data including such data stored in items such as paper records, computers, and related equipment. 3 - Credit cards, electronic fund transfer cards or access devices used solely for deposit, withdrawal or transfer of funds. What is the Landlord's Furnishings HO 05 46 endorsement used for? - ....ANSWER...To increase the Personal Property Limit to a maximum of $10,000.00 on property regularly rented or held for rental to others by an insured. What does the Coverage E - Personal Liability Insuring Agreement state? - ....ANSWER...The insurance company will provide coverage for a claim against an "insured" for damages because of "bodily injury" or "property damage" caused by an "occurrence" covered by the policy. What does the Coverage F - Medical Payments to Others Insuring Agreement state? - ....ANSWER...The insurance company will pay necessary medical expenses incurred within three years from the date of the accident causing "bodily injury." What are the exceptions to the "business" exclusion that give back both personal liability and medical payments to others coverage for some "business" activities? - ....ANSWER...1 - The rental or holding for rental of an "insured location" if on an occasional basis if used only as a residence. 2 - The rental or holding for rental of an "insured location" in part for use as a residence unless the tenant intends to have more than 2 roomers or boarders. 3 - The rental or holding for rental of an "insured location" in part as an office, school, studio, or private garage. 4 - An "insured" under the age of 21 in a part-time or occasional self-employed "business" with no employees. *No "bodily injury" or "property damage" arising out of the rendering of or failure to render professional services. What kind of coverages does the Structures Rented to Others - Residence Premises HO 04 40 endorsement provide? - ....ANSWER...Property & liability coverage for an other structure that is rented to others for use as a private residence. What coverage does Permitted Incidental Occupancies - Residence Premises HO 04 42 endorsement provide? - ....ANSWER...Premise liability coverage. *Coverage is provided only on the "residence premises." What coverage does Business Pursuits HO 24 71 endorsement provide? - ....ANSWER...Liability coverage is provided for the "business" pursuits of the "insured" shown in the schedule. It provides coverage both on and away from the "residence premises." What is excluded under the Business Pursuits HO 24 71 endorsement? - ....ANSWER...1 - Coverage for a "business" owned or financially controlled by the "insured" or by a partnership if the "insured" is a partner or member. 2 - Professional services other than teaching. 3 - "Bodily injury" to a fellow employee injured during the course of employment. 4 - Coverage for an "insured" who is a member of the faculty or teaching staff of a school or college for (1) liability involving draft/saddle animals, aircraft, hovercraft, "motor vehicles", or watercraft for purpose of instruction in their use and (2) corporal punishment. Under the Personal Auto Policy, what is the definition of a business? - ....ANSWER...A trade, profession, or occupation. Since recreational vehicles are personal property, where would property coverage be provided? - ....ANSWER...Coverage C - Personal Property. For a recreational vehicle that is not required to be registered, property coverage is only provided for a loss by a covered peril if the recreational vehicle is used for what? - ....ANSWER...Solely to service a residence. What is the only recreational vehicle that may be eligible for property coverage by an endorsement? - ....ANSWER...Golf carts. What two coverage options are given under the Owned Motorized Golf Cart Physical Loss Coverage HO 05 28 endorsement? - ....ANSWER...1 - Direct physical loss including collision. 2 - Direct physical loss excluding collision. What is a "Golf Cart" defined as? - ....ANSWER...1 - Designed to carry up to 4 people