Multiple Choices pick the most correct answer (2 points each):

1. Which of the following boats would not be covered under Section II (Personal Liability) of an unendorsed Homeowners policy:

1. an owned 20-foot sailboat B
2. an owned 90 horsepower outboard
3. a borrowed 100 horsepower inboard/outboard
4. an owned 50-foot boat that is laid up and in storage in the back of your yard

2. Warranties on the standard boat or yacht policy include:

1. navigational limits
2. auxiliary power engines only D
3. seaworthiness
4. a. and c.

3. When underwriters review a small boat policy application, they will consider:

a. age or experience of the owners of the boat

b. loss histories and motor vehicle records

c. number of owners

d. all of the above

4. Which one of the following is NOT a typical Boat Policy exclusion?

a. latent defect

b. temperature extremes

c. Protection and Indemnity C

d. War

5. The type of home alarm system, that you would purchase to protect your $800,000. house and its contents consisting of high-value paintings and jewelry, would most likely be:

a. local alarm system

b. a proprietary alarm system

c. a monitored central alarm station

d. an activated police-station alarm system

6. A large sailboat that has a double hull is called a:

a. cutter

b. wave runner

c. catamaran

d. sloop

7. The primary components that are listed on the declarations page of the typical small boat policy include:

1. the hull
2. the boat dock
3. the engine if it is an outboard
4. all of the above
5. a. and c.

8. Which of the following is liability exclusion found on most personal boat policies?

a. business pursuits or charter services

b. wear and tear

c. uninsured or underinsured boaters

d. vermin

9. If total loss for an item is paid on an inland marine policy, the premium will be reduced on a pro-rata basis or credited to the insureds policy. This statement is better known as the:

a. the loss assumption clause

b. the loss to a pair or set clause

c. the lost clause

d. the stated amount clause

10. When underwriting a jewelry policy, the under would consider the following factor(s):

a. travel exposures

b. the value of the jewelry vs. the value of the applicants home and income

c. the loss history of the applicant

d. all of the above

True and false: (2 points each)

_____ 1. Waterskiing and parasailing are two liability exposures which are covered on all small boat policies.

_____2. If a small boat insurance policy a lay-up period from October through March, there would be coverage if the policyholder owner takes this boat to Florida, while on vacation, and operates it for a bass fishing tournament during the month of December.

_____3. Physical damage coverage for boat trailers is usually provided by an auto insurance policy.

_____4. If expanding and contracting ice crush a boat left in the Lake Erie over the winter months, the Small Boat Policy will pay for this damage.

_____5. If a boat trailer becomes unhitched while being pulled by an auto, the damage it causes, to other vehicles on the roadway, will be covered by the personal auto policy for the auto that was pulling the boat.

_____6. Personal inland marine policies can be issued in the name of two individuals who do not reside in the same household.

_____7. Inland marine policies usually provide broader coverage than found in an unendorsed ML/HO-3 Policy.

_____ 8. Most Inland Marine Insurance Policies stipulate that, if the insured recovers from another party, the loss payment is considered a loan that must be repaid

_____ 9. Protection and Indemnity coverage includes bodily injury liability for the owner of a large, personal watercraft.

_____ 10. The umbrella policy provides worldwide coverage.

_____ 11. Most ML/Homeowners policies do not have a horsepower limitation for borrowed motorboats.

_____ 12. The Personal Effects Floater is the policy form which is used for most jewelry exposures.

_____ 13. Mishandling and tearing a valuable stamp would not be covered on a Personal Articles Policy or Floater.

_____ 14. In case of loss, the insurance company has the option to replace an item that was covered on an inland marine policy.

_____ 15. Damage caused by rats and chipmunks is covered on the Personal Watercraft Policy.

_____16. If the owner of a 40-foot boat decides to make some extra money by chartering fishing tours, the liability section of the Personal Watercraft Policy would respond to any injuries claimed by the charter passengers.

_____17. A wave runner is always powered by an outboard engine.

_____18. A boat policy would provide coverage for an explosion caused the pilot light of a built-in stove located inside the cabin of the boat.

_____19. Owner-occupied houseboats can be insured on the typical Small Boat Policy.

_____20. The most powerful boat engines are always outboard-type boat engines.