RMI 211 - Homework over Chapters 22 23 DW

docx

School

Missouri State University, Springfield *

*We aren’t endorsed by this school

Course

211

Subject

Finance

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by UltraSquidPerson957

RMI 211 Homework – Chapters 22 & 23 10 points Chapter 22 1. Name the 4 coverages provided in Section I of a homeowners policy. For each of the coverages, briefly describe the type of coverage provided, and give an example of a loss that would be covered. (4 points) There are 4 coverages in Section I; Coverage A, Coverage B, Coverage C, Coverage D. Coverage A covers the dwelling building on the premises and structures that are attached to it. Ex: Part of the garage was crushed by a tree during a storm, Coverage A would cover it. Coverage B covers structures on the premises that are separated from the dwelling. Ex: The toolshed in the backyard gets flooded during a hurricane, Coverage B would cover it. Coverage C covers personal property that is owned or used by the insured and can be covered anywhere in the world. Ex: Your furniture has been stolen from your house while you were Hawaii for a vacation, Coverage C will cover it. Coverage D provides protection when the residence premises CANNOT be used because of covered loss. Ex: You must stay at a hotel because your house is getting repaired, Coverage D will cover these expenses of your hotel. 2. Megan has her home and personal property insured under an unendorsed Homeowners 3 (special form) policy. Indicate whether each of the following losses (and resulting costs) are covered. If the loss is not covered, explain why it is not covered. For each question, provide more than just a “yes/no” answer. Describe why it is or is not covered . (6 points) a. Megan leaves a candle burning when she leaves the house and a spark from the candle starts a fire in her home. The fire department arises is short amount of time and is able to minimize fire damage to just 2 rooms but there is additional water damage from efforts to put out the fire. Megan will be covered by Coverage A covers her dwelling. b. Megan’s house is totally destroyed by a tornado. Her valuable Doberman pinscher dog is killed by the tornado. Megan’s house would be covered by Coverage A but her dog will not be covered at all. Because pets are hard to put value on. c. Megan is on vacation, and a thief breaks into her hotel room and steals a suitcase containing jewelry, money, clothes, and an airline ticket.

Megan’s stolen property will be covered by Coverage C, but only 50% of how much Coverage A is. d. Defective wiring causes a fire in the attic. Damage to the house is extensive. Mega is forced to move into a furnished apartment for three months while the house is being repaired. Megan’s temporary living cost will be covered by Coverage D. e. Megan’s son, age 20, is attending college but is home for Christmas. A stereo set is stolen from his dormitory room during his absence. Megan’s son is covered as long as he was in the room anytime during the 60 day period before the loss, the theft is covered. f. The home is badly damaged in a severe earthquake. As a result of the earthquake, the foundation has a 3-foot crack and is now uneven. The home is not covered because earthquakes are on the list of exclusions.

Chapter 23 1. Homeowners insurance premiums are based on a number of factors. Identify at least 4 major factors that help determine the cost of a homeowners policy. (4 points) Location of Home Construction cost Deductible amount Type of policy 2. Indicate whether the following losses are covered under Section II of the homeowner’s policy. Assume there are no special circumstances. Give reasons for your answers. (6 points) a. The named insured’s dog bites a neighbor’s child and also chews up the neighbor’s coat. Coverage F will pay another person’s medical expense that maybe injured by the animal owned by the insured. b. A son living at home accidentally injures another player while playing softball. Coverage F will pay another person’s medical expense that the action of the insured causes and injury. c. A guest slips on a waxed kitchen floor and breaks an arm. Coverage F will pay another person’s medical expenses that maybe accidentally injured on the premises. d. The named insured accidentally falls on an icy sidewalk and breaks a leg. Coverage F will pay another person’s medical expenses that maybe accidentally injured on the premises. e. While driving to the supermarket, the named insured injures another motorist with the automobile. Coverage F will pay another person’s medical expenses that maybe accidentally injured on the premise. f. The named insured paints houses for a living. A can of paint accidentally spills onto a customer’s roof and discolors it. This loss is not covered because the insurance will protect the name of insured and family members against legal liability arising out of personal acts.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version