Property And Casualty Insurance License Property Insurance Basics 2

Question 1

What is a 'named peril' policy?

Accepted Answer

A policy that covers only the perils specifically listed

Answer

A policy that covers all perils except those named

Answer

A policy named after the insured

Answer

A policy covering natural disasters only

Question 2

Replacement cost coverage for personal property pays:

Accepted Answer

The cost to replace the item with a new item of like kind and quality

Answer

The original purchase price of the item

Answer

The fair market value at time of loss

Answer

The ACV minus the deductible

Question 3

Which section of a homeowners policy covers the insured's personal property worldwide?

Accepted Answer

Coverage C

Answer

Coverage A

Answer

Coverage B

Answer

Coverage D

Question 4

What does Coverage D (Loss of Use) provide in a homeowners policy?

Accepted Answer

Reimbursement for additional living expenses when the home is uninhabitable

Answer

Additional coverage for outbuildings

Answer

Coverage for business property in the home

Answer

Protection for scheduled personal articles

Question 5

What is a 'blanket' property policy?

Accepted Answer

A policy with a single limit covering multiple properties or types of property

Answer

A policy that covers all weather-related perils

Answer

A policy providing coverage in all 50 states

Answer

A policy with no deductible

Question 6

An 'agreed value' clause in a property policy means:

Accepted Answer

Coinsurance is suspended because value has been agreed upon in advance

Answer

The insurer and insured agree to dispute resolution

Answer

The deductible amount is pre-set

Answer

The premium is locked for the policy period