Which of the following statements correctly describes fine arts floaters?

Coverage is on an all-risks basis and no deductible applies

Which of the following theft losses would be covered under a basic homeowner's policy?

Theft of property from insured's principal home with signs of forced entry

Nala is an avid golfer with a set of custom clubs. What coverage will a sports equipment floater provide for her clubs?

Coverage is provided on a scheduled basis and for an individual amount

What coverage does a personal comprehensive property policy extend to contents during a move?

At your new residence & in transit but only for a specified period

What does liability insurance indemnify the insured for?

Sums required by law to pay third parties for bodily injury/property damage

Process where an insurer who paid a loss can recover from those responsible

What is the insured required to do by the notice to authorities clause?

Notify police if they suspect loss caused by malicious act, burglary, theft

What does the comprehensive home insurance form cover?

Any loss or damage subject to the exclusions and conditions in the wording

What is meant by the term "inherent vice"?

The object will, by its nature, suffer loss

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C 82 - Study 4: The Homeowners Policy

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Answers

1
Which of the following statements correctly describes fine arts floaters?
They can be used to cover jewellery valued over $5,000
Coverage is on a specified-perils basis and a deductible applies
They can be used to cover musical instruments that are over 25 years old
Coverage is on an all-risks basis and no deductible applies
2
Which of the following theft losses would be covered under a basic homeowner's policy?
Theft of property/building materials from properties under construction
Theft from secondary locations if insureds are not residing there
Theft by tenants or from parts of dwelling rented to tenants
Theft of property from insured's principal home with signs of forced entry
3
Insured had tree roots that grew into their main drainpipe & clogged it. Which endorsement would cover this loss?
Flood insurance
Sewer backup coverage
Service line coverage
Earthquake insurance
4
Nala is an avid golfer with a set of custom clubs. What coverage will a sports equipment floater provide for her clubs?
There is no coverage if the clubs are stolen
Coverage only applies while the clubs are stored or used in North America
Coverage is provided on a scheduled basis and for an individual amount
The clubs are covered under a blanket limit for sports equipment
5
What coverage does a personal comprehensive property policy extend to contents during a move?
None without special endorsement
At your new residence & in transit but only for a specified period
Cannot be insured
At the new location used as your residence
6
What does liability insurance indemnify the insured for?
Costs for alternative living expenses if home unfit to live in after a loss
Sums the insured must pay for property taxes on the home
Sums the insured must pay to repair damage to a roof caused by a tornado
Sums required by law to pay third parties for bodily injury/property damage
7
What is subrogation?
Process where an insurer who paid a loss can recover from those responsible
The process an insured can use to terminate a policy
The process a court uses to determine who is liable for causing damage
The process an insured can use to appeal a claims settlement
8
What is the insured required to do by the notice to authorities clause?
Notify police if they know/suspect loss was caused by a third party
Notify police if they suspect loss caused by malicious act, burglary, theft
Submit sworn statement if loss caused by malicious act, burglary, theft
Submit sworn statement if they know/suspect loss caused by third party
9
What does the comprehensive home insurance form cover?
Only perils listed in the policy form
Any loss or damage subject to the exclusions and conditions in the wording
Any and all losses no matter how they are caused
Just claims for which the insured is legally liable
10
What is meant by the term "inherent vice"?
It's considered uninsurable as it's wholly under the control of the insured
The object is subject to a high-theft risk
The object will, by its nature, suffer loss
The insured has committed an illegal act and will not have coverage

C 82 - Study 4: The Homeowners Policy Flashcards | StudBud