Nina's former home, which had a well and an on-site septic system, was insured under a standard
Question:
Nina's former home, which had a well and an on-site septic system, was insured under a standard homeowners policy with no endorsements, She sold that home and bought one in the city that provides her with city water and sewer service. She tells her insurance agent that she wants the same coverage on her new home as she had on her old home. What added coverage should the agent suggest to reflect her change in exposures?
a. Earthquake endorsement
b. Flood insurance policy
c. Public utility endorsement
d. Water back-up or overflow endorsement
After learning that the community where his agency is located is near an earthquake seismic zone, Sammie recognizes that most of his homeowners clients should probably have earthquake insurance. What is a good way for him to encourage the purchase of earthquake insurance?
a. A survey
b. A telephone poll
c. Cancel homeowners policies that have no earthquake coverage
d. Educate clients
To avoid probate, Sam and Janet Evening followed their attorney's advice and set up a separate entity that will hold title to their home subject to an obligation to permit Sam and Janet to use the home for their benefit. This entity that they established under state law is most likely a(n)
a. limited liability company.
b. limited liability partnership.
c. long-play record.
d. trust.
Trudy bought the vacant lot adjacent to her house and planted a large garden there. The garden produces more vegetables than her family needs, and Trudy earns some extra cash by selling them at a local farmers market. Trudy never mentioned this to her insurance agent. Trudy probably has a coverage gap because
a. a garden is an attractive nuisance.
b. her homeowners policy has various business-related exclusions and restrictions.
c. the garden is not an insured location.
d. women cannot qualify as gentleman farmers.
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts