OTL Lesson Nine Quiz

Question 1 of 35

The Basic Homeowners Policy will cover

A summer cottage
Replacement Cost of Loss
Additional Living Expenses
Scheduled Articles

Question 2 of 35

Coverage under the Personal Articles endorsement

Is all risks
Applies only in Canada and the continental US
Is subject to a deductible
Applies in blanket amount for described categories of personal items

Question 3 of 35

A seasonal residence form does not provide coverage for

Losses due to fire
Theft from the insured property
Loss of personal property caused by fire
Extended coverage perils

Question 4 of 35

To qualify for a Homeowners policy

A dwelling must contain no more than 6 units
A dwelling must be fully occupied
The owner must live in the same area
A minimum amount of insurance on the building may be specified

Question 5 of 35

Which of the following extensions under the Homeowners Comprehensive Policy increased the amount of insurance?

Lock replacement
Tear Out
Moving to another home
Arson Conviction Reward

Question 6 of 35

A tenant negligently causes a fire which damages the apartment building. Under which policy is the building damage covered

The Tenant`s Liability policy
The Tenant`s Legal Liability Policy
The Building Owners Policy
Each tenant would be assessed part of the cost of repairs

Question 7 of 35

To which of the following items insured under a Homeowners Policy does a limit apply when the item is stolen but not when it is damaged in an explosion

Computer Software
Watercraft
Jewellery
Garden Tractors

Question 8 of 35

Reference to PARTS is included in the Additional Conditions of a property policy. What does it state?

If a property consists of several parts, each part must be scheduled separately
If a property is made up of several parts, loss or damage to any one or more parts will be considered loss or damage to entire property
If a property consists of several parts, the insurer is only liable for the insured value of the lost or damaged part, including the cost of installation.
If a property consists of several parts. The insurer is only liable for the proportion of the total value of the property which the number of damaged or lost parts bears to the total number of parts in the property

Question 9 of 35

Co-insurance clauses can seriously affect loss settlement. They may:

Affect the third party in a liability claim
Increase the amount to be paid by the insurer
Decrease the amount to be paid by the insurer
Affect the insured’s personal liability coverages

Question 10 of 35

If the Insured wishes to cancel the policy the cancellation takes effect:

On the date the policy or lost policy voucher is signed off by the insured
As soon as the insured receives payment of the return premium
Fifteen (15) days after receipt of a registered letter requesting cancellation
Five (5) days after a written request has been delivered to the insurer

Question 11 of 35

Which of the following would qualify for a Comprehensive Homeowners policy

A building where the owner lives in the upstairs apartment and operates a small florist shop on the main floor
A duplex where the owner has rented to two families
A triplex where the owner lives in one unit and rents the other two
All of the above

Question 12 of 35

The term “replacement cost” means:

The same as actual cash value
The full cost of replacement or repair, without any deductions for depreciation
Both of the above are true
None of the above are true

Question 13 of 35

Which of the following would be covered by a Homeowners Basic Form

Earthquake causes insured house to collapse
Pipes freeze and burst causing water damage while the client is away overnight
Sudden rain storm comes when insured is out and water enters through open windows damaging contents
Glass table top is broken when light fixture above it falls down

Question 14 of 35

A mortgagor is:

The document which indicates the amount of money which is owed
The one to whom money is owed
The insurer who must pay the money in the event of a claim
The one who owes the money

Question 15 of 35

Under a Personal Articles endorsement

Coverage is on a named perils basis
A sizeable deductible usually applies
Coverage is on a blanket basis for each class of items covered
Valuations will be required on those items insured on a valued basis

Question 16 of 35

Extended Coverage perils include which of the following?

Earthquake and Hail
Fire and Sewer Back-up
Windstorm and Vandalism
All of the above

Question 17 of 35

Which of the following perils may be insured under a property insurance policy

Loss or Damage caused by earthquake
Loss or Damage caused by the insured`s criminal acts
Loss or Damage caused by war or invasion
Loss or Damage caused by a nuclear incident as defined in the Nuclear Liability Act

Question 18 of 35

Statutory Conditions in a property policy are primarily to protect the rights of:

The agent/broker
The Insurer
The Insured
Both the Insured and Insurer

Question 19 of 35

Laws regulating the zoning, demolition, repair of construction of buildings and their related services can increase costs of repair to buildings. These increased costs are:

Considered uninsurable
Only insurable under an “All Risk“ Policy
Partly covered under the 10% extension clause in most policies
Insurable if specified in a property policy

Question 20 of 35

Which of the following is NOT true of all risks policies?

Insurance is against all risks of direct loss or damage
The extent of coverage is determined by the exclusions
They provide insurance against all risks and all types of damage
Anything that is not specifically excluded is covered

Question 21 of 35

The basic perils insured by each and every Basic Fire policy includes:

Fire only
Fire and Lightning Only
Fire, Lightning and Explosion
Fire, Lightning and Windstorm

Question 22 of 35

Inflation endorsements

Usually apply to buildings only
Increase the amount of coverage during the term based on certain indices
Are usually subject to additional premium
Are valuable in times of low inflation

Question 23 of 35

Which of the following is NOT an extended coverage peril

Theft
Hail
Windstorm
Riot

Question 24 of 35

The Sue and Labour clause in an insurance policy is designed to:

Point out to the insured their duty to take all reasonable steps in and about the recovery of the property in return for agreement that the insurer will contribute to the cost
Require the insurer to sue others who may be responsible for loss or damage to the insured property
Permit the insurer to sue the insured for failure to maintain the property
Require the insurer to do some of the repair work to restore the property

Question 25 of 35

The extended coverage endorsement does not

Add insurance against additional perils
Increase the amount of insurance
Apply to property already insured against fire
Broaden the coverage for lightning damage

Question 26 of 35

Which one of the following does the Homeowners Comprehensive policy automatically cover?

Owned recreational vehicles
Insured’s tools used in connection with his business while kept at the business
Private structures on the insured’s premises
Personal belongings temporarily stored in a storage warehouse for all listed perils of the policy

Question 27 of 35

What provisions are included in the basic fire policy for removal of property to prevent further loss or damage

Automatic coverage is given for a limited time and subject to certain conditions
Automatic coverage applies for 7 days and regardless of the expiry date of the policy
Optional coverage is available for a nominal additional premium
Automatic coverage covers only at one single additional location

Question 28 of 35

Loss or damage caused by earthquake is:

Not insurable as it is considered an “Act of God”
A coverage that may be added to a property policy for an additional premium
One of the insured perils usually included in a property policy
Not available under a property insurance policy

Question 29 of 35

Which one of the following coverage under a Homeowners Comprehensive policy including inflation protection is not automatically increased in amount at the anniversary of a policy

Additional Living Expenses
Dwelling Building Coverage
Liability
Personal Property Coverage

Question 30 of 35

Which of the following is NOT a specified peril in a Homeowners Policy?

Smoke
Explosion
Water Damage
Theft

Question 31 of 35

When a vacancy permit is granted on a dwelling policy, what effect does it have on the perils insured

It suspends certain coverage while the vacancy exists
It permits the property to be vacant without affecting the coverage
It introduces co-insurance conditions into the policy
None

Question 32 of 35

Which of the following is NOT the subject of a Statutory Condition?

Time limit in which premium must be paid
Knowingly making false statements
Method by which the policy may be terminated
Details of how and when to make a claims under the policy

Question 33 of 35

The main difference between a Homeowners form and a Tenants form is that

There are no all risks Tenants forms
There is no building coverage on Tenants forms
There is no Additional Living Expenses coverage on Tenants forms
The Tenants forms contain Legal Liability coverage

Question 34 of 35

The Standard Mortgage Clause outlines:

That the insurer shall give fifteen (15) days notice to the mortgagee if the insured fails to renew
The terms and conditions of the agreement between the insured and mortgagee
The coverage for the benefit of the mortgagee
The obligations and rights of the insurer and mortgagee

Question 35 of 35

Under Section 2 of your Homeowners policy who is not covered

The Insured
A friend who is over for a visit
The mailman
The Maytag Repair Man

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