CONTINUING EDUCATION Questions With Accurate Answers
Not all individuals are eligible for homeowners coverage -
Accurate answers Which of the following statements is true with respect to
eligibility for homeowners insurance?
Four (4) - Accurate answers
A building cannot be insured in personal lines if it contains more than ____ residential units.
A dwelling policy cannot insure a building with more than 4 dwelling units -
Accurate answers Erica's client just bought a six-family apartment building and
wants to insure it on a dwelling policy. Which of the following responses is MOST appropriate for Erica
to make?
Homeowners - Accurate answers
What type of personal lines policy combines both property and liability coverages to make it a package
policy?
Special Form (HO3) - Accurate answers
What homeowners coverage form provides open perils coverage on the building and other structures
and named perils coverage on personal property?
Grandma will be added by endorsement as a nonresident co-owner -
Accurate answers John's client insures his home on a dwelling policy. During a
recent policy review, John learned his client owns the home jointly with his grandmother, who lives in
another state. How can the client insure Grandma's ownership interest on his dwelling policy?
Homeowners policies offer broader coverage and more types of coverage -
Accurate answers Your client purchased a new home and wants to keep his
premiums as low as possible. He tells you he heard dwelling policies are much less expensive than
homeowners policies are and that is the type of policy he wants to buy. You convince him a
homeowners policy is the better investment for which of the following reasons?
Replacement value - Accurate answers
The _______ value of a home is the cost to repair damaged property with property of like kind and
quality, at current prices, without deduction for depreciation.
No, homes with knob and tube wiring and without central heat are ineligible -
Accurate answers Sandy's 50-year-old home contains knob and tube wiring
and her only type of heating is a wood stove. Is her home eligible for coverage on a homeowners policy?
Extended Coverage - Accurate answers
Fred's home is insured by a Basic (DP1) Form. If he wants to be insured for the peril of windstorm, he
needs to buy _________.
,Most inland marine policies do not have a deductible -
Accurate answers What is the standard deductible on an inland marine policy?
Filed and Non-Filed - Accurate answers
What are the two lines of coverage into which inland marine risks are categorized?
Personal Articles Floater - Accurate
answers What type of inland marine floater insures several different classes of
property on a scheduled basis, meaning each item is insured for a specific or appraised value?
Inland marine insurance - Accurate
answers What type of property coverage is written when standard property
insurance cannot insure property because its location is not fixed and, instead, moves around?
Inland marine insurance is subject to less regulation -
Accurate answers Explain why an insurer can write inland marine coverage on
a more comprehensive basis than it writes standard property insurance coverage.
Janet should return the policy to the insurer or send a written notice of cancellation to the insurer -
Accurate answers Janet is now a very wealthy individual after winning the
lottery jackpot. Janet has decided that now she would rather self-insure her auto insurance needs. With
respect to cancelling the policy Janet has with her insurer, which of the following statements is correct?
Submission of 4 or more claims during a single policy period -
Accurate answers After a personal auto policy has been in effect for 60 days,
the insurer CANNOT cancel the policy for:
Optional Limits Transportation Expenses Coverage endorsement -
Accurate answers Dave is very glad he had an endorsement added to his policy
since he sustained a serious loss under his Part D Coverage and will be without his vehicle for
transportation for a considerable amount of time. Dave is glad that he has the:
UM is compulsory in all states -
Accurate answers All of the following statements are correct with respect to
Uninsured Motorist coverage, except:
Limits that are equal to, or greater than, the total of all coverage provided by the split limits -
Accurate answers At the present time, your client has split limits on her auto
insurance policy. However, your client has requested to change the limits of liability to a combined
single limit. In this instance, which of the following is best recommendation to give to your client?
Are NOT insurance policies - Accurate
answers Loss Damage Waivers offered by rental car companies:
The insurer has the option to make a payment or return the property -
Accurate answers Melinda reported a claim to her insurer involving some
valuable property that was stolen from her auto while she was shopping. To Melinda's good fortune, the
, stolen property was recovered one day after it was stolen. Which of the following applies to the insurer
with respect to handling this claim?
Other than Collision - Accurate answers
While driving on a country road, Samantha struck a deer which ran directly in front of her auto, severely
damaging the front-end of her auto. Which of the following is considered the cause of this loss?
Combined single limit - Accurate
answers Marcy is going over the Dec page of her client's policy with her client.
The Dec page shows a single limit applicable to claims for both bodily injury and property damage. What
type of limit of liability applies to the client's policy?
Vehicles used for transportation of goods are not eligible for coverage -
Accurate answers Your client now owns a dune buggy that he purchased to
use to make deliveries for his delivery service business. When he asks if it can be added to or endorsed
on his existing personal auto policy, you explain to him that:
Adjust the policy premium - Accurate
answers Sheila insures her auto and her resident adult son's auto under her
PAP. Sheila recently notified her agent that she acquired a second auto that she will own and drive in
addition to her other auto. Which of the following is a right that the insurer has considering these facts?
SUV - Accurate answers
Which of the following vehicles is eligible to be insured on a personal auto policy?
She should be eligible for a Safe Driving Discount -
Accurate answers Cynthia has a history as a safe driver for several years and
has never been issued a ticket. When she asks her agent if her premium can be discounted, her agent
should reply that:
No, since it is owned by a corporation -
Accurate answers Barbara's client asked if he is eligible for coverage under his
personal auto policy, when his employer - a corporation - purchased a car for him to drive. Which of the
following would be correct?
Colorado - Accurate answers
Todd has lived in Iowa for more than 10 years. Todd was in involved in an auto accident in Colorado
while visiting his parents. When Todd submits a claim to his insurer who is domiciled in Connecticut, for
which state will the insurer interpret the policy?
They are not standard forms - Accurate
answers Which of the following statements BEST describes the forms on which
umbrella and excess liability policies are issued?
Follow-form contract - Accurate
answers Which of the following forms typically contains fewer pages than
traditional umbrella contracts?
Not all individuals are eligible for homeowners coverage -
Accurate answers Which of the following statements is true with respect to
eligibility for homeowners insurance?
Four (4) - Accurate answers
A building cannot be insured in personal lines if it contains more than ____ residential units.
A dwelling policy cannot insure a building with more than 4 dwelling units -
Accurate answers Erica's client just bought a six-family apartment building and
wants to insure it on a dwelling policy. Which of the following responses is MOST appropriate for Erica
to make?
Homeowners - Accurate answers
What type of personal lines policy combines both property and liability coverages to make it a package
policy?
Special Form (HO3) - Accurate answers
What homeowners coverage form provides open perils coverage on the building and other structures
and named perils coverage on personal property?
Grandma will be added by endorsement as a nonresident co-owner -
Accurate answers John's client insures his home on a dwelling policy. During a
recent policy review, John learned his client owns the home jointly with his grandmother, who lives in
another state. How can the client insure Grandma's ownership interest on his dwelling policy?
Homeowners policies offer broader coverage and more types of coverage -
Accurate answers Your client purchased a new home and wants to keep his
premiums as low as possible. He tells you he heard dwelling policies are much less expensive than
homeowners policies are and that is the type of policy he wants to buy. You convince him a
homeowners policy is the better investment for which of the following reasons?
Replacement value - Accurate answers
The _______ value of a home is the cost to repair damaged property with property of like kind and
quality, at current prices, without deduction for depreciation.
No, homes with knob and tube wiring and without central heat are ineligible -
Accurate answers Sandy's 50-year-old home contains knob and tube wiring
and her only type of heating is a wood stove. Is her home eligible for coverage on a homeowners policy?
Extended Coverage - Accurate answers
Fred's home is insured by a Basic (DP1) Form. If he wants to be insured for the peril of windstorm, he
needs to buy _________.
,Most inland marine policies do not have a deductible -
Accurate answers What is the standard deductible on an inland marine policy?
Filed and Non-Filed - Accurate answers
What are the two lines of coverage into which inland marine risks are categorized?
Personal Articles Floater - Accurate
answers What type of inland marine floater insures several different classes of
property on a scheduled basis, meaning each item is insured for a specific or appraised value?
Inland marine insurance - Accurate
answers What type of property coverage is written when standard property
insurance cannot insure property because its location is not fixed and, instead, moves around?
Inland marine insurance is subject to less regulation -
Accurate answers Explain why an insurer can write inland marine coverage on
a more comprehensive basis than it writes standard property insurance coverage.
Janet should return the policy to the insurer or send a written notice of cancellation to the insurer -
Accurate answers Janet is now a very wealthy individual after winning the
lottery jackpot. Janet has decided that now she would rather self-insure her auto insurance needs. With
respect to cancelling the policy Janet has with her insurer, which of the following statements is correct?
Submission of 4 or more claims during a single policy period -
Accurate answers After a personal auto policy has been in effect for 60 days,
the insurer CANNOT cancel the policy for:
Optional Limits Transportation Expenses Coverage endorsement -
Accurate answers Dave is very glad he had an endorsement added to his policy
since he sustained a serious loss under his Part D Coverage and will be without his vehicle for
transportation for a considerable amount of time. Dave is glad that he has the:
UM is compulsory in all states -
Accurate answers All of the following statements are correct with respect to
Uninsured Motorist coverage, except:
Limits that are equal to, or greater than, the total of all coverage provided by the split limits -
Accurate answers At the present time, your client has split limits on her auto
insurance policy. However, your client has requested to change the limits of liability to a combined
single limit. In this instance, which of the following is best recommendation to give to your client?
Are NOT insurance policies - Accurate
answers Loss Damage Waivers offered by rental car companies:
The insurer has the option to make a payment or return the property -
Accurate answers Melinda reported a claim to her insurer involving some
valuable property that was stolen from her auto while she was shopping. To Melinda's good fortune, the
, stolen property was recovered one day after it was stolen. Which of the following applies to the insurer
with respect to handling this claim?
Other than Collision - Accurate answers
While driving on a country road, Samantha struck a deer which ran directly in front of her auto, severely
damaging the front-end of her auto. Which of the following is considered the cause of this loss?
Combined single limit - Accurate
answers Marcy is going over the Dec page of her client's policy with her client.
The Dec page shows a single limit applicable to claims for both bodily injury and property damage. What
type of limit of liability applies to the client's policy?
Vehicles used for transportation of goods are not eligible for coverage -
Accurate answers Your client now owns a dune buggy that he purchased to
use to make deliveries for his delivery service business. When he asks if it can be added to or endorsed
on his existing personal auto policy, you explain to him that:
Adjust the policy premium - Accurate
answers Sheila insures her auto and her resident adult son's auto under her
PAP. Sheila recently notified her agent that she acquired a second auto that she will own and drive in
addition to her other auto. Which of the following is a right that the insurer has considering these facts?
SUV - Accurate answers
Which of the following vehicles is eligible to be insured on a personal auto policy?
She should be eligible for a Safe Driving Discount -
Accurate answers Cynthia has a history as a safe driver for several years and
has never been issued a ticket. When she asks her agent if her premium can be discounted, her agent
should reply that:
No, since it is owned by a corporation -
Accurate answers Barbara's client asked if he is eligible for coverage under his
personal auto policy, when his employer - a corporation - purchased a car for him to drive. Which of the
following would be correct?
Colorado - Accurate answers
Todd has lived in Iowa for more than 10 years. Todd was in involved in an auto accident in Colorado
while visiting his parents. When Todd submits a claim to his insurer who is domiciled in Connecticut, for
which state will the insurer interpret the policy?
They are not standard forms - Accurate
answers Which of the following statements BEST describes the forms on which
umbrella and excess liability policies are issued?
Follow-form contract - Accurate
answers Which of the following forms typically contains fewer pages than
traditional umbrella contracts?
