26) David has a Homeowners 3 policy that provides $280,000 of insurance on his dwelling, which has a current replacement value of $400,000. Ignoring any deductible, how much will David collect if a kitchen with a replacement value of $24,000 but an actual cash value of $18,000 is destroyed in a fire? A) $18,000B) $20,000C) $21,000D) $24,000Answer: CQuestion Status: Previous Edition6
27) Which of the following statements about the appraisal clause in the Homeowners 3 policy is (are) true?I.It is used to determine a value for personal property when the policy is issued. II. It is used to help settle disputes over the amount of a loss after a loss has occurred. 28) Under the Homeowners 3 policy, all of the following are options of the insurer for settling claims EXCEPT 29) All of the following are duties of the mortgagee under the standard mortgage clause EXCEPT 30) All of the following statements about the cancellation of a Homeowners 3 policy are true EXCEPT A) The insurer may cancel a new policy for any reason if it has been in force for less than 60 days and is not a renewal policy.B) At least 100 days notice of cancellation must be given if an insurer cancels a policy for nonpayment of premium.C) A policy written for longer than 1 year can be cancelled for any reason on the anniversary dateby giving the insured at least 30 days notice of cancellation.D) After a policy has been in force for at least 60 days, it can be cancelled by the insurer if the risk has increased substantially since the policy was issued.Answer: BQuestion Status: Previous Edition 7
31) All of the following statements about conditions under a homeowners policy are true EXCEPT
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- Summer '13
- Question Status, Home insurance, actual cash value, Insurance terms, unendorsed Homeowners