Review of Homeowners Insurance Coverages FINAL EXAM (GA 58826)

Homeowners that are ___________ may learn that there is not enough coverage to rebuild their home after a total loss.

The purchase of a(n) ______________ is often the largest investment an consumer will ever make.

The primary role of the purchase of Homeowners insurance is to reduce the uncertainties of this type of loss.

A __________ is immediately inflicted by an insured peril under the policy.

This type of risk exists when there are only two possible outcomes.

The possibility that an insured may intentionally try to cause a loss is an example of a ____________.

This type of loss is the result of events such as unemployment, disability, or death.

With this type of loss exposure management, the individual assumes the entire financial impact of a loss.

This is a mathematical principal that states when the number of similar and independent exposure units increases, the relative occurrence of predictions about any future outcomes also increases.

Often part of a package policy, __________ covers money, merchandise, and money from various causes of loss.

A ____________ is something that increases the likelihood and/or the severity of a loss.

A common way to distinguish property loss exposures to be insured is by separating them into two categories: real property or ___________ property.

Which of the following would be classified as mobile property for which the typical Homeowners policy would provide limited or no coverage?

Of all the property policy types, this type of policy offers the broadest coverage available.

A Basic Perils Policy provides __________coverage of the standard Homeowners Policies.

The loss settlement amount equal to the value of the damaged property at the time of the loss, less depreciation, is _____________.

An example of this type of liability insurance would be Errors and Omissions insurance obtained by an accountant or attorney.

__________ provides individuals the ability to enforce rights that have been infringed upon by others, including contract rights.

___________ is set by local, state, and federal government agencies that hold regulatory powers.

Which of the following elements is not a required element to establish negligence?

This doctrine eases an injured party’s burden of proof against a manufacturer by stating that a harmful product was unreasonably dangerous, even in instances where the manufacturer was not negligent.

Laws allowing for the application of Comparative Negligence asses damages in proportion to each party’s ____________.

Claims under Property Damage Liability can be evaluated __________ objectively than claims under Bodily Injury.

Which of the following is not provided under the package of coverages provided in a Homeowners Policy?

This ISO Homeowners form covers an insureds’ home and contents against 17 named perils.

Some insurance companies offer a(n) ________________ Policy, a version of the HO-3 Special Form Policy, where the company will pay the full amount necessary to replace a home and its contents after a loss, even if it exceeds the policy limits.

Which of the following is not a usual component of the Homeowners policy?

As is required as part of a contract, the insurance company’s _____________ is its obligation to provide the contractually specified insurance coverage for the policy period.

Which of the following would not fall under Coverage A – Dwelling coverage in the HO-3 Special Form Policy?

What is the common term used in the Homeowner’s Policy to identify the amount of insurance that applies to each of the coverages?

Which of the following is an exclusion that applies to Coverages A and B of the HO-3 Special Form Policy?

Under the HO-3 Special Form Policy, theft in or to a home under construction, or of the supplies and materials used in the construction, is ___________ until construction is complete.

In the HO-3 Special Form Policy, a loss caused by the failure of power or by other utility services is excluded if the failure occurs ___________.

Under the HO-3 Special Form Policy, coverage for personal property located in ___________ would be limited to the greater of $1,000 or 10% of the Coverage C limit of liability.

Damage caused by _____________ to Coverage C – Personal Property, while contained inside a building, is covered only if the outside wall or roof is first damaged.

The following are methods of valuation of a loss, depending on the circumstances of the loss, under the HO-3 Special Form Policy Coverage D – Loss of Use except:

Under the HO-3 Special Form Policy Section I Additional Coverages, this additional coverage will pay up to $1,000 to remove fallen trees that have damaged a covered structure on the residence premises.

Unless otherwise noted in the policy, if two (2) or more deductibles apply to the same loss, _____________ deductible(s) must be satisfied in the HO-3 Special Form Policy.

The HO-3 Special Form Policy requires the insured to carry at least ________ of the replacement cost of the damaged structure in order to receive full replacement cost settlement.

This is the difference between Actual Cost Value and Replacement Cost that is recoverable once repair or replacement of property is made.

Under the HO-3 Special Form Policy, _____________ provides Liability Coverage for the insured if a claim is made, or suit brought, against the insured for bodily injury or property damage caused by a covered occurrence.

All of the following are excluded under Coverage E and Coverage F of the HO-3 Special Form Policy, with limited exceptions, except:

As an exclusion applying to Coverages E and F of the HO-3 Special Form Policy, bodily injury or property damage that is intended or expected by the insured is excluded unless it is the result of using reasonable force to:

The cost to defend an insured in a lawsuit, including expenses incurred by the insured, and the costs taxed against an insured in the case, fall under which Additional Coverage of Section II of the HO-3 Special Form Policy?

As a Condition in Section II of the HO-3 Special Form Policy, under _____________, an injured person must send the insurer written proof of the claim as soon as is practical.

Under the Non-Renewal Common Policy Condition of the HO-3 Special Form Policy, the insurer must give __________ written notice to the insured of their intent not to renew the policy.

The property exposures that tenants have are any _________________ that the tenants have made in the dwelling itself.

Which of the following is not a major type of loss exposure faced by tenants covered by an HO – Renters Policy?

In the HO-4 Renters Policy Form, the limit of liability for Loss of Use is 30% of which Property Coverage Limit?

The Liability Coverages under Section II of the HO-4 Renters Policy __________ those coverages found in the HO-3 Special Form Policy.

A condominium unit is usually defined as the space between the floor, ceiling, and walls, which is what definition of exclusive ownership?

What is the basic limit of Coverage A – Dwelling in the HO-6 Condo Owners Policy?

Under the HO-6 Condo Owners Policy, the limit of liability for Coverage D is ___________ of the Coverage C Limit.

This endorsement provides coverage for Coverage C for direct loss, unless otherwise excluded, when added to the HO-6 Condo Owners Policy.

A Homeowners Policy has a(n) ___________ premium which reflects that the policy is made up of a package of coverages.

The construction type that consists of exterior walls, wood, or other combustible materials, on combustible supports is:

The ____________ would be adjusted higher or lower when an insured decreases or increases the standard policy deductible.

What is the standard deductible for Homeowners Property Coverage?

These can be added to a Homeowners Policy to meet the needs of underwriting requirements of the insurer, meet state requirements, or to meet the needs of an insured.

The Inflation Guard Endorsement (HO-04-04) permits the insured to select a percentage of annual increase in the limits of liability, which applies _________ throughout the policy year.

This endorsement can be added to provide coverage for direct physical loss to certain classes of property which would otherwise be limited, such as jewelry, musical instruments, or fine arts.

The Homeowners Form, the Declarations Page, and ____________ make up the Mobile Home Policy.

Under the Mobile Home Policy, the Limit of Liability for Coverage B – Other Structures is:

How much does the unendorsed Mobile Home Policy provide for removal expenses for a mobile home threatened by an insured peril?

The Farmers Personal Liability Endorsement (HO-24-73), when added to a Homeowners Policy, provides coverage for the liability exposure arising out of _______________ conducted away from the residence premises.

Similar to the HO-3 Special Form Policy, which Dwelling Policy insures against risk of direct loss to Coverage A and B Property.

The ____________ is an assigned risk property program that allows insureds in high-risk congested urban areas to obtain coverage.

These plans were established to provide access to insurance for insureds in coastal areas at high risk of heavy windstorm losses.

One of the common issues for consumers that have homeowners insurance is that there is a likely chance that they have not_____________.

When obtaining Earthquake Insurance, wood-framed homes generally _________ to insure than brick-framed homes.

Which coverage also includes materials and supplies located on the residence premises, or adjacent to it, which are for use in construction, alteration, or repair of the dwelling?

Multi-Policy, Mature Homeowners, and Fire-Resistant Material are types of _________ available to insureds of Homeowners Insurance.

To assure that a home is adequately insured it is recommended that homeowners obtain coverage for at least ___________ of the home’s replacement value.

To receive _____________ settlement on Coverages A, B, and C, a homeowner should obtain an HO-3 Special Form Policy and an HO-15 Endorsement.

Before a loss settlement is accepted from the insurer, the homeowner should get a __________ from a licensed contractor to assure that the adjuster’s estimate is realistic and accurate.