瑞达Rejda保险教材英文练习题.doc

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1、 .Principles of Risk Management and Insurance, 11e (Rejda)Chapter 21 Homeowners Insurance, Section II1) All of the following persons are insured for personal liability under the homeowners policy EXCEPTA) children of the named insured under age 24 who are attending college full time and temporarily

2、residing elsewhere.B) foster children under the age of 21 who reside with the named insured.C) nonresident employees of the named insured.D) the spouse of the named insured if a resident of the same household.Answer: CQuestion Status: Previous Edition2) Persons insured for personal liability under t

3、he homeowners policy include which of the following?I.Relatives while visiting the named insured.II.Overnight guests who are not relatives of the named insured.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition3) All of the following statements about the

4、 personal liability coverage (Coverage E) of an unendorsed homeowners policy are true EXCEPTA) Coverage is written on an occurrence basis.B) Coverage is provided for bodily injury liability.C) Coverage is provided for property damage liability.D) Coverage is provided for personal injury liability. A

5、nswer: DQuestion Status: Previous Edition4) Which of the following statements about the insurers obligation to provide a legal defense under the personal liability coverage (Coverage E) of the homeowners policy is (are) true?I.The insurer agrees to defend the insured only if the suit is not groundle

6、ss, false, or fraudulent.II.The insurers obligation to defend the insured ceases after the amount paid for damages from an occurrence equals the policy limit.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition5) Which of the following statements about the

7、 coverage for medical payments to others (Coverage F) under the homeowners policy is true?A) Medical payments may be made for any resident of the named insureds household.B) Medical expenses incurred within 3 years of an accident are covered.C) Medical payments are made only if the insured is not le

8、gally liable.D) Covered medical expenses are limited to emergency room charges.Answer: BQuestion Status: Previous Edition6) Which of the following persons is (are) eligible for benefits under medical payments to others (Coverage F) of the homeowners policy?I.A friend who slips and falls on a wet pat

9、io while visiting the named insured.II.A neighborhood child who is severely scratched by a cat in the care of the named insured.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition7) All of the following are considered insured locations for medical payment

10、s to others (Coverage F) under a homeowners policy EXCEPTA) a new vacation home purchased by an insured during the policy period.B) a motel room where an insured is temporarily residing.C) a hall rented by the insured for her daughters graduation party.D) farmland owned by the insured.Answer: DQuest

11、ion Status: Previous Edition8) Section II of the homeowners policy has exclusions applying to all of the following EXCEPTA) activities of the named insureds minor children.B) business activities.C) transmission of a communicable disease.D) intentional injuries.Answer: AQuestion Status: Previous Edit

12、ion9) All of the following situations are excluded from coverage under Section II of the homeowners policy EXCEPTA) the rental of a spare bedroom which is used by the tenant as an office.B) the use of a rented airplane to take a vacation.C) the ownership of a ten-unit apartment house as an investmen

13、t.D) the performance of professional services by the insured at the residence premises.Answer: AQuestion Status: Previous Edition10) Which of the following situations is covered under Section II of an unendorsed homeowners policy?A) injuries which occur at a park resulting from a motorcycle owned by

14、 the insuredB) injuries resulting from an auto not subject to registration because it is in dead storageC) injuries resulting from an auto rented by the insured while on a vacationD) injuries resulting from a trailer being pulled by the insureds autoAnswer: BQuestion Status: Previous Edition11) Whic

15、h of the following statements regarding watercraft liability under Section II of an unendorsed HO-3 policy is (are) true? I.No coverage is available for watercraft liability. II.Liability arising out of the use of watercraft that are under certain length and horsepower limits is covered. A) I only B

16、) II only C) both I and II D) neither I nor II Answer: BQuestion Status: Previous Edition12) Which of the following situations would be covered under Section II of a homeowners policy?I.The insured is sued by his girlfriend because he infected her with the AIDS virus.II.The insureds son is sued afte

17、r a friend suffered serious injury as a result of using illegal drugs sold to him by the son.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition13) For which of the following situations would there be personal liability coverage under the homeowners polic

18、y?I.The named insured accidentally injures her husband with a chain saw.II.The named insured breaks his wifes valuable vase while practicing his golf swing.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition14) All of the following are exclusions in the h

19、omeowners policy that apply to medical payments to others (Coverage F) EXCEPTA) bodily injury resulting from nuclear radiation.B) bodily injury to persons who are social guests at the insured location.C) bodily injury to persons eligible to receive workers compensation benefits.D) bodily injury to r

20、esidents of the household who are in the care of an insured.Answer: BQuestion Status: Previous Edition15) Which of the following statements about the additional coverages included in Section II of the homeowners policy is true?A) Damage to property of others is covered only if the insured is legally

21、 liable.B) Damage to property arising out of a business engaged in by the insured is covered. C) Interest that accrues on a judgment after the judgment is awarded but before the judgment is paid is covered under claims expenses.D) First aid expenses incurred by the insured for a bodily injury covere

22、d under the policy are not covered.Answer: CQuestion Status: Previous Edition16) Which of the following statements about the additional coverage for damage to property of others in Section II of the homeowners policy is true?A) The maximum amount of coverage is $25,000 per occurrence.B) Payments are

23、 made on the basis of the replacement cost of the damaged property.C) There is coverage for property damage arising out of a business engaged in on a full-time basis by an insured.D) There is coverage for intentional property damage by any insured who is a teenager.Answer: BQuestion Status: Previous

24、 Edition17) Liability arising out of all of the following are covered under the personal injury endorsement to the homeowners policy EXCEPTA) bodily injury.B) malicious prosecution.C) slander.D) invasion of privacy.Answer: AQuestion Status: Previous Edition18) Liability arising out of all of the fol

25、lowing are covered under the personal injury endorsement to the homeowners policy EXCEPTA) property damage.B) false arrest.C) libel.D) slander.Answer: AQuestion Status: Previous Edition19) Factors that affect the cost of homeowners insurance include which of the following?I.Construction material II.

26、Deductible amountA) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition20) Which of the following statements about endorsements to the homeowners policy is (are) true?I.The purpose of the inflation guard endorsement is to help prevent home owners from being

27、under-insured.II.The purpose of the watercraft endorsement is to provide coverage for watercraft when they are used outside the United States.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition21) Which of the following statements about buying homeowners

28、insurance is true?A) There is no reason to carry insurance for more than 80 percent of a dwellings replacement cost.B) The deduction for depreciation will be increased if a personal property replacement cost endorsement is purchased.C) Premiums often can be reduced substantially by selecting a highe

29、r deductible.D) There is little reason to compare cost since the lack of competition results in little price variation among companies.Answer: CQuestion Status: Revised22) Which of the following statements about an earthquake endorsement for a homeowners policy is (are) true?I.The endorsement also c

30、overs landslides and volcanic eruptions.II.The coverage for earthquakes is written without a deductible. A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition23) Which of the following statements about the personal property replacement cost endorsement used

31、 with the homeowners policy is (are) true?I.The damaged or destroyed property must be repaired or replaced, no matter the size of the loss.II.It is designed primarily for antiques and fine art.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition24) Which o

32、f the following statements about the scheduled personal property endorsement to the homeowners policy is (are) true?I.It provides named-perils coverage on scheduled items.II.It can be used to insure valuable items such as jewelry, silverware, and coin collections.A) I onlyB) II onlyC) both I and IID

33、) neither I nor IIAnswer: BQuestion Status: Previous Edition25) All of the following losses are covered under Section II of an unendorsed Homeowners 3 policy EXCEPTA) The homeowner accidentally dropped a bowling ball, injuring another bowlers foot.B) A baby sitter slipped and fell at the insureds ho

34、me, breaking her ankle and incurring medical expenses.C) The insured slandered a city council member at a city council meeting.D) The insureds dog bit a neighbor. Answer: CQuestion Status: Previous Edition26) Tom is planning to build a home. He is weighing many factors, including construction materi

35、als, location, and other considerations. Which of the following statements is true with regard to homeowners insurance and Toms new home?A) The higher the construction costs are in the area, the lower Toms homeowners insurance premiums will be.B) The lower the homeowners deductible selected, the low

36、er the premium will be.C) Older homes cost more to insure than newer homes.D) A wood frame home costs less to insure than a brick home.Answer: CQuestion Status: Previous Edition27) Robert purchased an unendorsed Homeowners 3 policy. He is concerned that if his personal property is destroyed, the ins

37、urer will take depreciation into consideration when determining the loss settlement and will pay him less than the amount needed to purchase new property. Which endorsement can Robert add to his Homeowners 3 policy to address this concern?A) inflation guard endorsementB) personal injury endorsementC

38、) personal property replacement cost endorsementD) earthquake endorsementAnswer: CQuestion Status: Previous Edition28) Gail lives in southern Illinois, near the New Madrid Fault Line. She added an earthquake endorsement to her Homeowners 3 policy. All of the following statements about the endorsemen

39、t are true EXCEPTA) The deductible is expressed as a percentage of the coverage limit rather than as a dollar amount.B) The endorsement also covers landslides and volcanic eruptions.C) Aftershocks occurring within 72 hours of an earthquake are considered part of the same occurrence.D) The endorsemen

40、t also covers flood losses.Answer: DQuestion Status: Previous Edition29) Lu would like to save money on her homeowners premium. All of the following steps will help her to reduce her homeowners premium EXCEPTA) raising the deductible in the homeowners policy to a higher amount.B) shopping around a h

41、omeowners policy.C) installing burglar alarms, smoke detectors, and dead-bolt locks.D) insuring the value of the land beneath the house.Answer: DQuestion Status: Previous Edition30) Reggie just purchased a home. A friend told him to consider insurance coverage for natural disasters when insuring the

42、 home. Losses from all of the following perils are covered under an unendorsed Homeowners 3 policy EXCEPTA) tornadoes.B) floods.C) hurricanes.D) forest fires.Answer: BQuestion Status: Previous Edition31) All of the following losses are excluded from coverage under Section II of an unendorsed Homeown

43、ers 3 policy EXCEPTA) Phyllis, a medical technician, misread a lab test and the patient is suing her.B) While using his canoe, Bert hit another canoe. The other canoe sank. Bert is being sued.C) Violet runs a for-profit daycare service in her home. The parents of a child injured while in Violets car

44、e are suing Violet.D) The homeowners son was injured when he fell off a swing in the homeownerss yard.Answer: BQuestion Status: Previous Edition32) Which of the following losses would be covered under the medical payments coverage of the Homeowners 3 policy?A) injuries to another person arising out

45、of the insureds negligent operation of a vehicleB) medical payments resulting from the transmission of a communicable diseaseC) injury to a resident employee at the insureds homeD) workers compensation medical paymentsAnswer: CQuestion Status: Previous Edition33) Which of the following losses would

46、be covered under the personal liability coverage (Coverage E) of an unendorsed Homeowners 3 policy?A) liability arising out of the manufacture and sale of illegal narcoticsB) liability arising out of damage to a neighbors property that occurred over timeC) liability arising out of a business operate

47、d in the home. D) liability arising out of bodily injury to an insuredAnswer: BQuestion Status: Previous Edition34) Tom and Tammy Evans were ready to purchase a home. The home was to serve as collateral for their mortgage loan. Two insurers declined to insure the home, citing an adverse CLUE report.

48、 Why would an insurer reject a homeowners insurance application because of an adverse CLUE report?A) because the previous owner had defaulted on the mortgage loanB) because the home is located in an area where the zoning law had been changedC) because there had been previous property insurance claim

49、s filed on the homeD) because the home is located in an area that does not have a certified fire departmentAnswer: CQuestion Status: Previous Edition35) Which of the following statements is (are) true concerning the use of an individuals credit history as an insurance rating factor?I.Individuals wit

50、h poor credit histories, as a group, generally file more homeowners claims than do individuals with good credit histories.II.The use of credit history as an insurance rating factor is controversial.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition36) A

51、credit-based score that is highly predictive of future claims cost is an individualsA) CLUE score.B) insurance score.C) loss ratio score.D) underwriting score.Answer: BQuestion Status: Previous Edition37) Which of the following statements is (are) true concerning the home business insurance coverage

52、 endorsement?I.It increases the coverage on business personal property at the insured residence from $2,500 to the Coverage C limit.II.It excludes coverage for liability arising out of the home business. A) I only B) II only C) both I and II D) neither I nor II Answer: AQuestion Status: Previous Edi

53、tion38) One of the Tips for Buying a Homeowners Policy is to consider purchasing a personal umbrella policy. What coverage is provided by a personal umbrella policy?A) blanket property coverage for any damage caused by waterB) excess liability coverage and coverage for some liability claims excluded

54、 by underlying policiesC) all-risk, replacement cost, property coverageD) coverage for business and professional liability Answer: BQuestion Status: Previous Edition39) Which of the following statements is true regarding the Homeowners 3 policy and identity theft?A) Identity theft is covered under C

55、overage D - Loss of Use. B) Identity theft is covered under Coverage C - Personal Property. C) Identity theft is covered under Coverage E - Personal Liability. D) Identity theft is covered by adding an endorsement. Answer: DQuestion Status: New40) Which of the following statements concerning the sch

56、eduled personal property endorsement with agreed value loss settlement?I. The endorsement provides all-risks coverage on the scheduled property. II.Losses under the endorsement are settled on an actual cash value basis. A) I only B) II only C) both I and II D) neither I nor II Answer: AQuestion Status: Newa