Property

1
Property Casualty InsuranceCHAPTER 5-Homeowners

• PREPARED BY THE FOLLOWING TECHNOLOGY CENTER CSR
  ACADEMIES
• CADDO-KIOWA
• CANADIAN VALLEY
• GORDON COOPER
• INDIAN CAPITAL-TAHLEQUAH
• SOUTHWEST
• WES WATKINS

2
SWTC

• Homeowners policies may only be issued to cover
  private residential purpose, and which contains
  no more than three family living units and no
  more than three boarders or roomers per family.
• A) TRUE
• B) FALSE

3
Caddo-Kiowa Tech

• The declarations page of a homeowners policy
  contains information about the risk included
• a) Identity of the named insured
• b) Location of the dwelling
• c) The policy deductible
• d) All the above.

4
Wes Watkins Tech

• If firefighters are called to save or protect
  covered property from a peril insured against,
  all forms provided up to 500 of coverage for
  fire department service charges.
• a) True
• b) False

5
Gordon Cooper
Gordon Cooper
Not at anytime is coverage for specific items
subject to special limitations. A)
True B) False
6
Canadian Valley

• Personal Property replacement cost is provided
  by
• A) An endorsement on all HO policies
• B) Is included as a standard provision in
  all HO policies
• C) Is an endorsement on HO-2 and HO-3
• D) All of the above.

7
SWTC

• A homeowners policy may not be issued to cover
  any property to which farm forms or farm rates
  apply, or property situated on any premises used
  for farming purposes.
• a) True
• b) False

8
Caddo-Kiowa

• Maximum coverage for any one tree, plant, or
  shrub is 250 on what form?
• a) HO-3
• b) HO-6
• c) HO-8
• d) HO-3 HO-8

9
Wes Watkins Tech

• Earthquake coverage is an added endorsement and
  an additional charge.
• A) True
• B) False

10
Gordon Cooper
Property damage means physical injury to or loss
of use of intangible property. A)
True B) False
11
Indian Capital

• The fewer number of categories of property
  subject to sub-limits does not mean that limited
  coverage is more restrictive than broad theft
  coverage.
• A) True
• B) False

12
SWTC

• The liberalization clause follows dwelling forms
  during the policy period or within 30 days prior
  to inception are automatically applied.
• A) True
• B) False

13
Canadian Valley

• What is the age of a covered family member in the
  same household as the insured for liability
  insurance?
• A) Under 21 C) Over 21
• B) Under 16 D) Under 18

14
Caddo-Kiowa Tech

• Homeowners policies provide _______ major
  property coverages?
• A) 6
• B) 2
• C) 4
• D) 5

15
Wes Watkins Tech

• In recent years, homeowners policies have been
  subject to a number of revisions. In most of the
  states in this country we use Homeowner 1984
  policies.
• A) True
• B) False

16
Gordon Cooper

• The following types of property losses are not
  covered by any homeowners policy land,
  structures used for business, loss caused by the
  neglect of the insured, losses caused by
  off-premises power failure.
• A) True
• B) False

17
Indian Capital

• Vehicle damage to a fence, driveway, or walk
  caused by a resident is excluded under the HO-2
  policy form.
• A) True
• B) False

18
SWTC

• Homeowners forms exclude loss caused by
  earthquake, but earthquake coverage may not be
  added to the endorsement.
• A) True
• B) False

19
Caddo- Kiowa Tech

• HO-1 covers ______ perils.
• A) 10
• B) 9
• C) 7
• D) 6

20
Canadian Valley

• Medical payments to others cover necessary
  medical expenses incurred within how many years
  of an accident causing bodily injury?
• A) 2 years C) 1 year
• B) 5 years D) 3 years

21
Wes Watkins Tech

• Claim expense coverage includes the costs of
  defending a claim and court costs charged against
  an insured in any suit the insurer defends.
• A) True
• B) False

22
Caddo-Kiowa Tech

• If Roy rented his home, what kind of homeowners
  insurance can he get?
• Short Answer

23
Gordon Cooper
All homeowners policies provide identical
liability coverage including coverage E
coverage F. A) True B) False
24
Indian Capital

• An insured can purchase an inflation guard
  endorsement which will automatically raise the
  limits for which coverages at periodic intervals?
• A) Coverage B
• B) Coverage C D
• C) Coverage A
• D) All of the above

25
SWTC

• Which of the following is not one of the 4 major
  property coverages which are called additional
  coverages on the forms?
• A) Coverage A-Dwelling
• B) Coverage B-other structures
• C) Coverage C-personal liability
• D) Coverage D-Loss of use

26
Caddo-Kiowa Tech

• _______ is the only homeowners form insuring
  personal property items against loss by what is
  known as mysterious disappearance.
• A) HO-3 C) HO-6
• B) HO-4 D) HO-15

27
Wes Watkins Tech

• If the named insured or the spouse dies, coverage
  does not continue for the legal representative.
• A) True
• B) False

28
Gordon Cooper
When a peril insured against causes a loss, all
forms cover cost for _____ made to protect
covered property for further damage. A)
debris removal B) reasonable repairs C)
property of others D) none of the above
29
Canadian Valley

• The liberalization clause follows dwelling
  forms-changes during the policy period or within
  how many days prior to the inception are
  automatically applied?
• A) 45 days C) 60 days
• B) 30 days D) 10 days

30
Indian Capital

• Maximum coverage for anyone tree, plant or shrub
  is
• A) 100
• B) 250
• C) 500
• D) None of the above

31
SWTC

• Which homeowners edition was introduced in six
  states on a trial basis to determine both public
  and industry reaction to a significant
  modernization of the 1976 policies?
• A) 1981 C) 1982
• B) 1984 D) 1983

32
Caddo-Kiowa Tech

• How does HO-8 differ from basic coverage?
• A) ACV settlement on the dwelling
• B) Miscellaneous coverage restrictions
• C) Elimination of optional property
  coverages
• D) All of the above

33
Wes Watkins Tech

• A homeowners policy has two major coverage
  sections, a property section and a liability
  section.
• A) True
• B) False

34
Gordon Cooper
Unlike dwelling forms, all homeowners forms
include coverage for _________. A) loss caused
by aggravated earth movement B) theft of person
property C) property in an apartment rented by
others D) none of the above
35
Indian Capital

• Which policy form does not give the insured the
  option of having the personal property of guests
  or residence employees covered by the policy?
• A) HO-8 C) HO-6
• B) HO-4 D) HO-1

36
SWTC

• How many days of notice must the insurer give the
  insured if the policy is to be cancelled during
  the first 60 days of coverage, or if it is
  cancelled at any time for non-payment of premium?
• A) 5 days C) 7 days
• B) 10 days D) 14 days

37
Canadian Valley

• Liability insurance is provided for the insureds
  resident only. It excludes any person or
  organization legally responsible.
• A) True
• B) False

38
Caddo-Kiowa Tech

• How many liability coverages are on homeowners
  policies?
• A) 2 C) 4
• B) 3 D) 5

39
Wes Watkins Tech

• Residence premises means
• A) Insured location
• B) Dwelling
• C) Unit owners
• D) Landlords furnishings

40
Gordon Cooper
_________ covered by homeowners policies are
similar to those covered by dwelling forms, and
the terms basic, broad, and special forms
have a similar meaning. A) Falling objects of
a buildings interior B) Perils C) Both A
B D) None of the above
41
Indian Capital

• Which of the following articles of personal
  property does not have a special limit under
  Coverage C of the homeowners policy?
• A) Guns C) Golfers Equipment
• B) Furs D) Water Craft

42
SWTC

• Sam asks Thomason Pools to put a swimming pool
  in his well manicured backyard. Are the trees
  and shrubs covered under the Homeowners Policy?
  (there are 6 dozen trees and 4 dozen bushes and
  shrubs) Does debris removal coverage apply?
• A) Yes B) No

43
Caddo-Kiowa Tech

• Stamps have 1,000 of coverage on broad forms.
• A) True
• B) False

44
Wes Watkins Tech

• Perils coveredBasic form does not cover
• A) Explosion
• B) Smoke damage
• C) Aircraft
• D) Collapse

45
Canadian Valley

• Personal Property coverage is included on all
  forms.
• A) True
• B) False

46
Gordon Cooper

• All of the following are per occurrence limits
  for coverage C limits except
• A) 250 C) 2,500
• B) 1,000 D) 1,500

47
Indian Capital

• The full limit applies to personal property owned
  or used by any insured while it is anywhere in
  the world.
• A) True
• B) False

48
SWTC

• What 2 types of construction apply to earthquake
  rates?
• A) Masonry, frame
• B) Stucco, shingles
• C) Wood, adobe
• D) Toothpicks, splinters

49
Caddo-Kiowa Tech

• On homeowners forms the full amount of Coverage
  C applies to property owned or used by any
  insured while it is anywhere in the world.
• A) True
• B) False

50
Wes Watkins Tech

• Perils coveredHO3 is what type of form?
• A) Special
• B) Broad
• C) Basic
• D) None of the above

51
Gordon Cooper

• If damage to the property of other is caused by
  an insured, the policies provide replacement cost
  coverage of up to?
• A) 1,000 per occurrence
• B) 500 per occurrence
• C) 1,500 per occurrence
• D) 1,200 per occurrence

52
Indian Capital

• HO-4 does not provide dwelling coverage because
  the form was designed for tenants.
• A) True
• B) False

53
Canadian Valley

• Up to 1,000 of coverage is provided by all forms
  for the named insureds share by any loss
  assessment charged by a corporation or
  association of property owners.
• A) True
• B) False

54
SWTC

• A personal property floater covers property
• A) Worldwide
• B) Nationwide
• C) Statewide
• D) Locally

55
Wes Watkins Tech

• John and Sue take a two-week vacation on November
  1. The weather was 85 degrees when they left.
  When they returned an early winter storm had
  caused the water pipes in their home to freeze
  and burst. Water had ruined their carpet,
  furnishings, woodwork, and plaster walls. What
  actions determine whether John and Sue are
  covered under their HO-3?
• Short answer

56
Caddo-Kiowa Tech

• HO-2 covers the same perils as HO-1, but adds 10
  additional perils.
• A) True
• B) False

57
Caddo-Kiowa Tech

• HO-8 is a modified version of HO-1.
• A) True
• B) False

58
Canadian Valley

• Coverage is not provided for breakage of glass or
  safety glazing material which is part of a
  building, storm door, or storm window.
• A) True
• B) False

59
Wes Watkins Tech

• In what year did ISO introduce new homeowners
  policies once again?
• A) 1995
• B) 1991
• C) 1998
• D) 2000

60
Caddo-Kiowa Tech

• The definition of insured location is identical
  on all homeowners forms.
• A) True
• B) False

61
Indian Capital

• Which homeowners form does not provide any major
  forms of property insurance for the residence?
• A) HO-1 HO-3
• B) HO-2
• C) HO-5 HO-15
• D) HO-4 HO-6

62
Gordon Cooper

• Lisa runs a day care in her name and in her home.
  She has an assistant named Peggy. They have
  seven children they take care of. Lisa found a
  handprint on one of the childrens leg, and finds
  out Peggy has been spanking the child. Would it
  be covered under her policy?
• Short Answer

63
Wes Watkins Tech

• Mobile homes may be covered when the MH-200 is
  attached to the policy. To be eligible a mobile
  home must meet what requirements?
• A) Occupied 3 months/year, and measure 12 by
  30.
• B) Occupied 6 months /year, and measure 15 by
  40.
• C) Occupied 12 months/year, and measure 13 by
  25.
• D) Occupied 12 months/year, and measure at least
  10 by 40.

64
Canadian Valley

• Which homeowners policies covers mobile homes
  when the endorsement MH-2000 is attached?
• A) HO-3 or HO-15 C) HO-2 or HO-3
• B) HO-4 or HO-6 D) HO-1 or HO-2

65
Indian Capital

• For condominium unit owners, an HO-6 provides
  1,000 of coverage, at no charge, for owned
  structures at the residence premises which are
  not part of the residence.
• A) True
• B) False

66
Wes Watkins Tech

• Coverage for building additions and alterations
  is found only on what form?
• A) HO-4
• B) HO-1
• C) HO-6
• D) Basic form