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 named peril policy only covers losses caused by perils explicitly listed in the policy document.

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

Replacement cost coverage pays the amount needed to replace the damaged or destroyed item with a new one of similar kind and quality, without deducting for depreciation.

Question 3

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

Accepted Answer

Coverage C

Answer

Coverage C (Personal Property) protects the insured's personal belongings anywhere in the world, subject to policy limits and conditions.

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

Coverage D pays for additional living expenses the insured incurs when a covered loss makes the residence uninhabitable.

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 blanket policy applies one overall limit to multiple locations or property types, providing flexibility in how coverage is allocated after a loss.

Property And Casualty Insurance License Practice Test

Property And Casualty Insurance License Practice Test

Property And Casualty Insurance License Property Insurance Basics 2