21) Your best friend's apartment has just been robbed, and he had no insurance. What would you suggest to your friend to better protect himself from such losses in the future? A) Purchase renter's insurance and add a personal articles floater. B) Take out personal property replacement cost coverage. C) Take a written and video tape inventory of your property. D) Only B and C above E) A, B, and C above 22) Suppose burglars trashed your apartment and stole your personal property. Your rent is $350 per month and you had to live in another apartment house for two months while the landlord had the apartment put back into livable condition. Under which section of an HO policy would you be covered and how much would you recover because of the move? A) Section I coverage C, $350 B) Section I coverage C, $700 C) Section I coverage D, $350 D) Section I coverage D, $700 E) Section II coverage, $350 23) On your home owners policy ________ protects any personal property that's owned or used by the policyholder, regardless of the location of this property. In other words, if you're on a vacation in Hawaii and someone hits you with a pineapple and steals your suitcase, your personal property is still covered. A) Coverage A B) Coverage B C) Coverage C D) Coverage D E) none of the above 24) The disadvantage of actual cash value coverage of personal property compared to replacement cost coverage is that it A) will reimburse you for replacement cost minus estimated depreciation. B) will reimburse you for the cash value of a new item. C) must be reported as a loss on your tax return. D) does not have to be reported as a loss on your tax return. E) none of the above 25) If you wanted to obtain an endorsement that automatically updates the level of property coverage based on an index of replacement costs that continually updates the cost of building a home, you would ask for a(n) A) inflation guard. B) automatic adjustment policy. C) replacement cost index. D) continual adjustment policy. E) none of the above 26) Reggie was hosting a BBQ when the deck fell off his house. Several of his friends were hurt in the accident. Luckily for Reggie he has ________ coverage on his home owner's insurance. A) personal articles B) loss of use C) personal liability D) None of the above 27) When you purchase a(n) ________, you are obtaining an extension to a homeowner's insurance policy that provides coverage for all personal property regardless of where it is located. A) uninsured property addendum B) property addendum C) personal rider D) personal articles floater E) none of the above 28) Antoine LaDuke suffered a major loss on his older home due to mud from a flood. Although he had homeowner's insurance, what was the probable reason he was not covered? A) His home was probably too expensive. B) His policy excluded flood-related damages. C) This is a personal liability issue. D) Older homes are excluded from flood-related damages. 29) Insurers in California are required to offer ________ coverage to consumers due to the substantial risk factors in that state. A) renters B) liability C) inflation D) earthquake E) bankruptcy 30) Supplemental coverage for homeowner's insurance is available through endorsements. Which one of the following is not a common form of additional coverage? A) personal articles floaters B) earthquake coverage C) flood protection D) medical payments E) inflation guard
21) Your best friend's apartment has just been robbed, and he had no insurance. What would you suggest to your friend to better protect himself from such losses in the future?
A) Purchase renter's insurance and add a personal articles floater.
B) Take out personal property replacement cost coverage.
C) Take a written and video tape inventory of your property.
D) Only B and C above
E) A, B, and C above
22) Suppose burglars trashed your apartment and stole your personal property. Your rent is $350 per month and you had to live in another apartment house for two months while the landlord had the apartment put back into livable condition. Under which section of an HO policy would you be covered and how much would you recover because of the move?
A) Section I coverage C, $350
B) Section I coverage C, $700
C) Section I coverage D, $350
D) Section I coverage D, $700
E) Section II coverage, $350
23) On your home owners policy ________ protects any personal property that's owned or used by the policyholder, regardless of the location of this property. In other words, if you're on a vacation
in Hawaii and someone hits you with a pineapple and steals your suitcase, your personal property is still covered.
A) Coverage A
B) Coverage B
C) Coverage C
D) Coverage D
E) none of the above
24) The disadvantage of actual cash value coverage of personal property compared to replacement cost coverage is that it
A) will reimburse you for replacement cost minus estimated
B) will reimburse you for the cash value of a new item.
C) must be reported as a loss on your tax return.
D) does not have to be reported as a loss on your tax return.
E) none of the above
25) If you wanted to obtain an endorsement that automatically updates the level of property coverage based on an index of replacement costs that continually updates the cost of building a home, you would ask for a(n)
A) inflation guard.
B) automatic adjustment policy.
C) replacement cost index.
D) continual adjustment policy.
E) none of the above
26) Reggie was hosting a BBQ when the deck fell off his house. Several of his friends were hurt in the accident. Luckily for Reggie he has ________ coverage on his home owner's insurance.
A) personal articles
B) loss of use
C) personal liability
D) None of the above
27) When you purchase a(n) ________, you are obtaining an extension to a homeowner's insurance policy that provides coverage for all personal property regardless of where it is located.
A) uninsured property addendum
B) property addendum
C) personal rider
D) personal articles floater
E) none of the above
28) Antoine LaDuke suffered a major loss on his older home due to mud from a flood. Although he had homeowner's insurance, what was the probable reason he was not covered?
A) His home was probably too expensive.
B) His policy excluded flood-related damages.
C) This is a personal liability issue.
D) Older homes are excluded from flood-related damages.
29) Insurers in California are required to offer ________ coverage to consumers due to the substantial risk factors in that state.
A) renters
B) liability
C) inflation
D) earthquake
E) bankruptcy
30) Supplemental coverage for homeowner's insurance is available through endorsements. Which one of the following is not a common form of additional coverage?
A) personal articles floaters
B) earthquake coverage
C) flood protection
D) medical payments
E) inflation guard
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