Question 1

A named-perils policy would not cover acid damage to a tile door.

Accepted Answer

A) True 
 B)False  True

Question 2

The insured in HO-3 Coverage E refers to the insured and spouse only.

Accepted Answer

A) True 
 B)False  False

Question 3

Homeowners' policies cover most watercraft.

Accepted Answer

A) True 
 B)False  False

Question 4

The earthquake endorsement covers loss due to tidal wave.

Accepted Answer

A) True 
 B)False

Question 5

Most persons insure their watercraft liability under an endorsement to the homeowners' policy.

Accepted Answer

A) True 
 B)False

Question 6

Trees, shrubs, and other plants may be covered up to 10 percent of Coverage A.

Accepted Answer

A) True 
 B)False

Question 7

The HO-8 policy

Accepted Answer

A)  has replacement cost coverage, 
B)  has $10,000 of theft coverage, 
C)  covers personal property on a worldwide basis, 
D)  has lower rates than the HO-3, 
E)  covers property on cost-to-repair basis. 
A)  has replacement cost coverage, 
B)  has $10,000 of theft coverage, 
C)  covers personal property on a worldwide basis, 
D)  has lower rates than the HO-3, 
E)  covers property on cost-to-repair basis.

Question 8

The minimum size policy for an HO-3 is

Accepted Answer

A)  $6,000, 
B)  $20,000, 
C)  $30,000. 
A)  $6,000, 
B)  $20,000, 
C)  $30,000.

Question 9

Matching :
-The _________________ states that if one loses one earring of a pair, the loss is not considered a total loss.

Accepted Answer

A)  additional living expenses 
B)  bare wall doctrine 
C)  broad named perils 
D)  comprehensive personal liability 
E)  dwelling
F) flood
G) limited named perils
H) loss settlement clause
I) Medical payments to others
J) Other structures
K) pair-and-set clause
L) unscheduled personal property 
A)  additional living expenses 
B)  bare wall doctrine 
C)  broad named perils 
D)  comprehensive personal liability 
E)  dwelling
F) flood
G) limited named perils
H) loss settlement clause
I) Medical payments to others
J) Other structures
K) pair-and-set clause
L) unscheduled personal property

Question 10

The HO-3 provides $1,000 of coverage for damage to the personal property of others in the insured's care, custody, or control.

Accepted Answer

A) True 
 B)False

Question 11

After a real property loss, an insured may choose between ACV and replacement cost coverage.

Accepted Answer

A) True 
 B)False

Question 12

The HO-3 covers wall-to-wall carpeting on a replacement cost basis.

Accepted Answer

A) True 
 B)False

Question 13

HO-3 Coverage E covers the insured's liability arising out of the use of small pleasure boats.

Accepted Answer

A) True 
 B)False

Question 14

With two persons working, a family needs little life insurance.

Accepted Answer

A) True 
 B)False

Question 15

The package of coverages in the homeowners' program cost consumers approximately the same as if each coverage was purchased separately.

Accepted Answer

A) True 
 B)False

Question 16

The first action that should be taken in establishing a personal risk management program is

Accepted Answer

A)  call your insurance agent, 
B)  purchase a homeowners' policy, 
C)  take an inventory of your personal property, 
D)  have a will made. 
A)  call your insurance agent, 
B)  purchase a homeowners' policy, 
C)  take an inventory of your personal property, 
D)  have a will made.

Question 17

The medical payments limit in the homeowners' policy is

Accepted Answer

A)  $100, 
B)  $500, 
C)  $1,000. 
A)  $100, 
B)  $500, 
C)  $1,000.

Question 18

Matching :
-A person's piano is covered under the _________________ section of the homeowners' policy.

Accepted Answer

A)  additional living expenses 
B)  bare wall doctrine 
C)  broad named perils 
D)  comprehensive personal liability 
E)  dwelling
F) flood
G) limited named perils
H) loss settlement clause
I) Medical payments to others
J) Other structures
K) pair-and-set clause
L) unscheduled personal property 
A)  additional living expenses 
B)  bare wall doctrine 
C)  broad named perils 
D)  comprehensive personal liability 
E)  dwelling
F) flood
G) limited named perils
H) loss settlement clause
I) Medical payments to others
J) Other structures
K) pair-and-set clause
L) unscheduled personal property

Question 19

Matching :
-The residence premises is called the _________________ in the homeowners' policy.

Accepted Answer

A)  additional living expenses 
B)  bare wall doctrine 
C)  broad named perils 
D)  comprehensive personal liability 
E)  dwelling
F) flood
G) limited named perils
H) loss settlement clause
I) Medical payments to others
J) Other structures
K) pair-and-set clause
L) unscheduled personal property 
A)  additional living expenses 
B)  bare wall doctrine 
C)  broad named perils 
D)  comprehensive personal liability 
E)  dwelling
F) flood
G) limited named perils
H) loss settlement clause
I) Medical payments to others
J) Other structures
K) pair-and-set clause
L) unscheduled personal property

Question 20

Which of the following is not an endorsement to the HO-3?

Accepted Answer

A)  personal injury, 
B)  watercraft liability, 
C)  aircraft liability. 
A)  personal injury, 
B)  watercraft liability, 
C)  aircraft liability.

Exam 15: Risk Management for Homeowners

A named-perils policy would not cover acid damage to a tile door.

The insured in HO-3 Coverage E refers to the insured and spouse only.

Homeowners' policies cover most watercraft.

The earthquake endorsement covers loss due to tidal wave.

Most persons insure their watercraft liability under an endorsement to the homeowners' policy.

Trees, shrubs, and other plants may be covered up to 10 percent of Coverage A.

The HO-8 policy

The minimum size policy for an HO-3 is

Matching : -The _________________ states that if one loses one earring of a pair, the loss is not considered a total loss.

The HO-3 provides $1,000 of coverage for damage to the personal property of others in the insured's care, custody, or control.

After a real property loss, an insured may choose between ACV and replacement cost coverage.

The HO-3 covers wall-to-wall carpeting on a replacement cost basis.

HO-3 Coverage E covers the insured's liability arising out of the use of small pleasure boats.

With two persons working, a family needs little life insurance.

The package of coverages in the homeowners' program cost consumers approximately the same as if each coverage was purchased separately.

The first action that should be taken in establishing a personal risk management program is

The medical payments limit in the homeowners' policy is

Matching : -A person's piano is covered under the _________________ section of the homeowners' policy.

Matching : -The residence premises is called the _________________ in the homeowners' policy.

Which of the following is not an endorsement to the HO-3?

Introduction to Risk

Risk Identification and Evaluation

Property and Liability Loss Exposures

Life, Health, and Loss of Income Exposures

Risk Management Techniques: Noninsurance Methods

Insurance As a Risk Management Technique: Principles

Insurance As a Risk Management Technique: Policy Provisions

Selecting and Implementing Risk Management Techniques

Risk Management and Commercial Propertypart I

Risk Management and Commercial Propertypart II

Risk Management and Commercial Liability Risk

Workers Compensation and Alternative Risk Financing

Risk Management for Auto Ownerspart I

Risk Management for Auto Ownerspart II

Loss of Life

Loss of Health

Retirement Planning and Annuities

Employee Benefits: Life and Health Benefits

Employee Benefits: Retirement Plans

Financial and Estate Planning

Risk Management and the Insurance Industry

Functions and Organization of Insurers

Government Regulation of Risk Management and Insurance

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