1) Personal Lines Final Exam 1 With Correct Answers

In liability policies, Supplementary Payments: A. Are subject to the overall policy limit B. Have their own separate limits C. Are payable in addition to the policy limit D. Are limited to 10% of the overall policy limit {Ans: C. Are payable in addition to the policy limit Supplementary Payments, such as coverage for the cost of defense, are provided in addition to limits on virtually all liability policies.}Coverage "F" on a HO ('00) policy is: A. Personal Liability B. Personal Property C. Medical to others D. Theft {Ans: C. Medical to others On a HO policy, Coverages A, B, C & D are Section I property coverages, Part II of the policy provides Coverage E - Personal Liability and Coverage F - Medical}The liability exposure that a HO policy covers is: A. Business B. Professional C. Premises D. Auto {Ans: C. Premises All HO policies provide coverage for the insured's legal liability to others as a result of premises liability. Further, coverage is extended to include premises where the insured is temporarily residing, and the insured's off-premises activities such as operating golf carts on a golf course and operating certain watercraft. However, liability relating to automobiles,