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Chapter 4 Quiz
This quiz will test your knowledge on the material presented. Some questions may also test your knowledge on material not yet presented.
Joe bought a house and could only afford minimum coverage. His agent sold him coverage provided by the basic dwelling form (DP-1). Two months later, Joe’s dishwasher inside the kitchen exploded. He reported the incident to his insurance agent who explained that his coverage was for:
Fire and lightning only.
Fire, lightning and internal explosion.
Fire, lightning, extended coverages (EC), and vandalism and malicious mischief (VMM).
Fire, lightning, and extended coverages (EC).
The insured has a horse stable on his premises. The dwelling is insured for $50,000 under a DP-2 dwelling policy. How much coverage applies to the horse stable?
The insured owns a four family dwelling and is covered under a homeowner policy. All but one of the units is rented. The insured also maintains a small incident business office in the structure. In case of a covered loss, which of the following would NOT be paid under coverage D (loss of use)?
Rental income and additional living expenses
Additional living expenses incurred by the insured
Rental income from the rental units
Loss of income from the incidental business
Lisa is building a new home and is using the dwelling insurance program. Under this program, there is an endorsement that is attached to the policy to cover dwelling in the course of construction. Lisa’s dwelling was completed on July 1, 2012. She was then permitted to occupy the dwelling until ___ under this coverage.
July 31, 2012
January 30, 2013
July 1, 2013
December 31, 2013
A person purchasing the basic dwelling form DP-1 causes damage to the fence on his property amounting to $100 while cutting his grass with his riding lawn mower. The policy will:
Pay the claim after applying the appropriate deductible
Pay the $100 as a supplementary payment
Deny the claim
Subrogate against the auto insurer
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