Which of the following statements about an earthquake endorsement for a homeowners policy is (are) true? I. The endorsement also covers landslides and volcanic eruptions. II. The coverage for earthquakes is written without a deductible. A) I only B) II only C) both I and II D) neither I nor II ANSWER Answer: […]
Date: September 19th, 2020
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 insured’s son is sued after a friend suffered serious injury as a result of using illegal drugs sold to him by the […]
Date: September 19th, 2020
Which of the following statements about buying homeowners insurance is true? A) There is no reason to carry insurance for more than 80 percent of a dwelling’s 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 […]
Date: September 19th, 2020
Which of the following accounts does NOT belong on the asset side of a balance sheet? A) marketable securities B) accounts receivable C) cash D) common stock ANSWER D
Date: September 19th, 2020
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 liable. B) Damage to property arising out of a business engaged in by the insured is covered. C) Interest that accrues on […]
Date: September 19th, 2020
Offering discounts to accelerate the collection of accounts receivables in an example of which cash-related activity in the cash flow cycle? A) Operating activity B) Profitability activity C) Investing activity D) Financing activity ANSWER A
Date: September 19th, 2020
Liability arising out of which of the following is covered under the personal injury endorsement to the homeowners policy? A) bodily injury B) property damage C) slander D) professional liability ANSWER Answer: C
Date: September 19th, 2020
For which of the following situations would there be personal liability coverage under the homeowners policy? I. The named insured accidentally injures her husband with a hammer. II. The named insured breaks his wife’s valuable vase while practicing his golf swing. A) I only B) II only C) both I and II D) neither I […]
Date: September 19th, 2020
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 the insured B) injuries resulting from an auto not subject to registration because it is in dead storage C) injuries resulting from an auto rented by the […]
Date: September 19th, 2020
Small company stocks have historically had higher average annual returns than large company stocks, and also a higher risk premium. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
