Principles of Risk Management and Insurance, 12e(Rejda/McNamara)Chapter 24 Other Property and Liability Insurance Coverages1) Which of the following statements about Dwelling Property 1 (basic form) is true?A) Coverage on the dwelling is written on a replacement cost basis.B) The full amount of personal property coverage applies to property away from the insured premises.C) Coverage for fair rental value of the dwelling is subject to both an overall maximum and a monthly maximum.D) "Open-perils" (all risks) coverage is automatically provided for both the dwelling and personal property.Answer: CQuestion Status: Previous Edition2) Perils insured under Dwelling Property 1 (basic form) include which of the following?I.EarthquakeII. Smoke3) Which of the following perils is covered under the Dwelling Property 2 (broad form) policy? 4) Which of the following statements about Dwelling Property 3 (special form) is (are) true?I.Personal property is covered on an "open perils" (all risks) basis.II.The dwelling and other structures are covered only for those perils specifically named in the policy.1
5) Which of the following coverages are provided by an unendorsed ISO Dwelling Program form?I.Theft of personal propertyII.Named-perils coverage for personal propertyA) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition6) Which of the following statements about the eligibility requirements for insuring mobile homes by endorsing a homeowners policy is (are) true?I.The mobile home must be designed for year-round living.II.The mobile home must be located in a fenced area with security guards.7) Which of the following statements about mobile home insurance is (are) true?I.Coverage for the mobile home may be written on either a replacement cost basis or an actual cash value basis, depending on how much the mobile home has depreciated.II.An additional coverage pays, up to a specified dollar limit, for the cost of transporting the mobile home to a safe place when it is endangered by a covered peril.
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- Fall '13