Property And Casualty Insurance Licensing Exam (100 Questions)

risk retention (self insuring) {Ans: client may choose to build up a fund to pay claims that insurance companies would have paid.}The insured is covered under a DP-3 with contents coverage. He has a hunting rifle stolen by forcible entry into the dwelling. The front door is severely damaged and must be replaced. Which of the following is a true statement regarding this loss? A. the entire claim will be denied B. only the damage caused by the burglars will be paid C. the theft of the gun is covered under personal property D. both the damage to the door and the theft of the gun will be covered. {Ans: B. only the damage caused by the burglars will be paid}The type of coverage on contents provided by the HO-3 is: {Ans: Named perils}Which of the following is not an insured location for liability coverage under the homeowners policy? a) a restaurant party room the insured has rented for a business meeting b) the insured's cemetery plot c) a restaurant party room the insured has rented for a birthday party d) vacant land owned by the insured {Ans: a) a restaurant party room the insured has