Exam 13: Multirisk Management Contracts: Homeowners

The National Flood Insurance Reform Act increased the waiting period from five to _____ days before a flood insurance policy is effective.

Flood insurance under the regular program is available only to communities that have passed required ordinances and have undergone studies by the Army Corps of Engineers.

Which of the following is covered under 'Coverage A-Dwelling' of the homeowners policy?

Which of the following is covered by umbrella policies?

Following the declarations page, the balance of each form is divided into two sections.Section I includes personal liability coverage for you and medical payments to others.

Which of the following statements is true about homeowners policy?

An umbrella liability policy is a substitute for adequate basic coverage with reasonable limits.

Identify the correct statement about 'Coverage D-Loss of Use' in a homeowners policy.

Loss of use coverage applies to personal property owned by others while it is "on the part of the residence premises occupied by an insured" and to property of guests and residence employees while at any residence occupied by an insured.

A(n) _____ is a claim against property that has not been satisfied.

In this process, the insured is required to transfer to the insurer any rights to recovery available from a third party.The transfer is made only to the extent of payment made by the insurer.Identify this process.

Some special limits that apply to personal property may be too low.Your jewelry or may be worth far more than the $1,000 limit of a homeowners policy.Such property can be listed and specifically insured to provide adequate coverage against all risks by adding the:

Homeowners policies exclude loss caused by flood due to the problem of adverse selection because:

Claim expenses refer generally to costs associated with litigation, such as premiums on bonds and prejudgment interest assessed against the insured, other than the actual cost of defense.

In a homeowners policy, identify the coverage that covers only additional expenses.

Identify the homeowners Section II condition that provides coverage separately to each insured, although the total available for any one occurrence is the limit shown in the declarations.

This part of the homeowners policy is the substance of the contract, spelling out the specific coverage provisions.Identify it.

Identify the endorsement that covers false arrest, detention, or imprisonment, or malicious prosecution, libel, slander, defamation of character, or violation of the right of privacy, invasion of the right of private occupation, wrongful eviction, or wrongful entry.

Business pursuits and professional services are excluded in umbrella policies unless there is underlying coverage.

This part of the homeowners policy includes general, universal provisions, such as the title of the coverage, and acts to bind together the remaining policy parts.Identify it.