STUDENTS SUCCESS
Revision Examination Tests
“Come all for this greatness”
...100% Correct Ans...
ECS1601 Pack Assignments (DETAILED ANSWERS) Semester 2 2024 -
DISTINCTION GUARANTEED 100%
The Inflation Guard endorsement gradually and automatically increases
limits throughout the policy period in homeowners policies for
Coverage(s)
Choose one answer.
A. A only.
B. A and B only.
C. A, B, and C only.
D. A, B, C, and D.
ans: D. A, B, C, and D.
The Credit Card, Electronic Fund Transfer Card or Access Device,
Forgery and Counterfeit Money Coverage—Increased Limit
endorsement may be appropriate for
Choose one answer.
A. Insureds who pay their bills online.
B. Insureds who use automated teller machines.
C. Insureds who hold credit cards.
,D. Insureds who tend to overspend because of credit availability.
ans: C. Insureds who hold credit cards.
The HO-3—Special Form (HO-3) Sections I and II—Conditions contain a
liberalization clause that
Choose one answer.
A. Broadens the definition section in accordance with state regulations.
B. Specifies how coverage may be cancelled by the insured.
C. Increases the limit of liability when there are multiple insureds
involved in a claim.
D. Specifies how coverage is broadened for insureds when the insurer
changes a current edition of a policy.
ans: D. Specifies how coverage is broadened for insureds when the
insurer changes a current edition of a policy.
The HO-3—Special Form (HO-3) excludes coverage for liability
assumed under contract or agreement. However, exceptions apply,
provided the loss exposures do not involve coverage excluded
elsewhere in the policy. Which one of the following describes an
exception?
Choose one answer.
A. Agreements intending to injure a third party
B. Written contracts relating to the ownership of an insured location
C. Liability assumed after an accident occurs
D. First-party liability
ans: B. Written contracts relating to the ownership of an insured location
Marta insured her home with an HO-3—Special Form (HO-3) that
includes a Personal Property Replacement Cost Loss Settlement
endorsement. Her large screen television fell off the wall and was
damaged beyond repair. She had paid $2,000 for it. At the time of loss it
had an actual cash value of $800 and a replacement cost of $1,500.
,Because she found that she had little time to watch television, she
decided not to replace the TV. How much did her insurer pay on the
claim?
Choose one answer.
A. $0
B. $800
C. $1,500
D. $2,000
ans: The insurer will pay $0 since falling off the wall is not a covered
peril.
All of the following are included as insureds for the Section II—Liability
Coverages of a homeowners policy, EXCEPT:
Choose one answer.
A. The named insured's 17-year-old foster child
B. The 19-year-old exchange student who temporarily lives with and
under the care of the named insured and his spouse
C. The homeowners association that sends a loss assessment bill to the
named insured
D. The named insured's neighbor while caring for the insured's dog if the
dog causes injury while in the neighbor's care
ans: C. All are insureds under the policy except for the homeowners
association.
Ben lost in his lawsuit against his neighbor, Jim, alleging that Jim had
created a nuisance on his property. Jim has now filed a malicious
prosecution claim against Ben. Under which endorsement to Ben's
homeowners policy can coverage for this claim be found?
Choose one answer.
A. Personal Liability endorsement
, B. Ordinance or Law—Increased Amount of Coverage endorsement
C. Additional Liability Coverages endorsement
D. Personal Injury Coverage endorsement
ans: D. Personal Injury Coverage endorsement
Under which one of the following conditions of a homeowners policy is
each insured seeking protection treated as if he or she has separate
liability coverage under the policy?
Choose one answer.
A. Limits of Liability condition
B. Voluntary Payment condition
C. Singularity of Coverage condition
D. Severability of Insurance condition
ans: D. Severability of Insurance condition
Under which one of the following conditions of a homeowners policy is
each insured seeking protection treated as if he or she has separate
liability coverage under the policy?
Choose one answer.
A. Limits of Liability condition
B. Voluntary Payment condition
C. Singularity of Coverage condition
Revision Examination Tests
“Come all for this greatness”
...100% Correct Ans...
ECS1601 Pack Assignments (DETAILED ANSWERS) Semester 2 2024 -
DISTINCTION GUARANTEED 100%
The Inflation Guard endorsement gradually and automatically increases
limits throughout the policy period in homeowners policies for
Coverage(s)
Choose one answer.
A. A only.
B. A and B only.
C. A, B, and C only.
D. A, B, C, and D.
ans: D. A, B, C, and D.
The Credit Card, Electronic Fund Transfer Card or Access Device,
Forgery and Counterfeit Money Coverage—Increased Limit
endorsement may be appropriate for
Choose one answer.
A. Insureds who pay their bills online.
B. Insureds who use automated teller machines.
C. Insureds who hold credit cards.
,D. Insureds who tend to overspend because of credit availability.
ans: C. Insureds who hold credit cards.
The HO-3—Special Form (HO-3) Sections I and II—Conditions contain a
liberalization clause that
Choose one answer.
A. Broadens the definition section in accordance with state regulations.
B. Specifies how coverage may be cancelled by the insured.
C. Increases the limit of liability when there are multiple insureds
involved in a claim.
D. Specifies how coverage is broadened for insureds when the insurer
changes a current edition of a policy.
ans: D. Specifies how coverage is broadened for insureds when the
insurer changes a current edition of a policy.
The HO-3—Special Form (HO-3) excludes coverage for liability
assumed under contract or agreement. However, exceptions apply,
provided the loss exposures do not involve coverage excluded
elsewhere in the policy. Which one of the following describes an
exception?
Choose one answer.
A. Agreements intending to injure a third party
B. Written contracts relating to the ownership of an insured location
C. Liability assumed after an accident occurs
D. First-party liability
ans: B. Written contracts relating to the ownership of an insured location
Marta insured her home with an HO-3—Special Form (HO-3) that
includes a Personal Property Replacement Cost Loss Settlement
endorsement. Her large screen television fell off the wall and was
damaged beyond repair. She had paid $2,000 for it. At the time of loss it
had an actual cash value of $800 and a replacement cost of $1,500.
,Because she found that she had little time to watch television, she
decided not to replace the TV. How much did her insurer pay on the
claim?
Choose one answer.
A. $0
B. $800
C. $1,500
D. $2,000
ans: The insurer will pay $0 since falling off the wall is not a covered
peril.
All of the following are included as insureds for the Section II—Liability
Coverages of a homeowners policy, EXCEPT:
Choose one answer.
A. The named insured's 17-year-old foster child
B. The 19-year-old exchange student who temporarily lives with and
under the care of the named insured and his spouse
C. The homeowners association that sends a loss assessment bill to the
named insured
D. The named insured's neighbor while caring for the insured's dog if the
dog causes injury while in the neighbor's care
ans: C. All are insureds under the policy except for the homeowners
association.
Ben lost in his lawsuit against his neighbor, Jim, alleging that Jim had
created a nuisance on his property. Jim has now filed a malicious
prosecution claim against Ben. Under which endorsement to Ben's
homeowners policy can coverage for this claim be found?
Choose one answer.
A. Personal Liability endorsement
, B. Ordinance or Law—Increased Amount of Coverage endorsement
C. Additional Liability Coverages endorsement
D. Personal Injury Coverage endorsement
ans: D. Personal Injury Coverage endorsement
Under which one of the following conditions of a homeowners policy is
each insured seeking protection treated as if he or she has separate
liability coverage under the policy?
Choose one answer.
A. Limits of Liability condition
B. Voluntary Payment condition
C. Singularity of Coverage condition
D. Severability of Insurance condition
ans: D. Severability of Insurance condition
Under which one of the following conditions of a homeowners policy is
each insured seeking protection treated as if he or she has separate
liability coverage under the policy?
Choose one answer.
A. Limits of Liability condition
B. Voluntary Payment condition
C. Singularity of Coverage condition
