1. The insurance company Wade deals with refuses to sell him a homeowners policy because he has transferred title of the company to a trust. To get coverage that is comparable but not quite as broad as the homeowners policy he wanted, Wade will have to arrange coverage under all the following EXCEPT: a. a difference-in-conditions policy in the name of both Wade and the trust. b. a dwelling policy in the name of the trust. c. a premises liability endorsement to the trust's dwelling policy. d. a tenant homeowners policy (form HO 4) in Wade's name. 3. David and Audrey are the named insureds in their homeowners policy, and the home's title was transferred a few years ago to a trust they established as part of their estate plan. If their home sustains property damage, a. David and Audrey are still covered because of their insurable interest in the home. b. legal precedents show that David and Audrey will be unable to recover from the insurer. c. the insurer could argue that the trust that owns the home is not an insured. 6. The expensive leather sofa in Leigh's condominium unit was damaged by a water leak. Leigh's condo insurance uses the "single entity" basis. Assuming the damage exceeds any applicable deductible, what property insurance, if any, should apply to Leigh's claim for damage to the sofa? a. Leigh's unit-owners HO6 policy b. No property insurance will respond, as this is a property damage liability loss. c. The condominium association's policy d. The loss assessment endorsement to Leigh's HO 6 policy 9. The governing documents of the association where Grover's condominium is located, which were drafted in the early 1980 s, use the "bare walls" approach to specifying who is responsible for insuring what property. Under this approach, a. Grover is responsible for insuring the fixtures inside his unit. b. Grover should turn his condo upside down and shake it to determine what to insure. c. the building and its contents are insured together as a single entity. d. the association is responsible for insuring the fixtures inside 14. Because Hollie's home is surrounded by beautiful, mature trees, her insurance agent should be sure she knows that a. endorsements to provide higher limits of tree coverage are not available. b. most homeowners policies provide only limited coverage on trees. c. pruning a mature tree makes it more susceptible to disease and insects. d. topping mature trees is a sound loss control practice. 20. Garry's homeowners policy (standard form HO 3) has a $200,000 limit on the coverage that applies to his dwelling building (Coverage A). Garry is moving to a new house when the moving van is involved in a fiery accident that completely destroys its contents. How much homeowners coverage, if any, would apply to Gary's stuff? a. None b. $1,000 c. $10,000 d. $100,000 3. Rather than open her acres of vacant land to the public, Emily eases it to a select group of hunters who pay a fee for the privilege The should also take steps to ensure that a. "no hunting" signs are prominently posted on the perimeter. b. the hunters are covered by property insurance. c. the hunters have fairly high liability coverage limits. d. the hunters sign a subrogation agreement. 10. Andrea and her family own a few horses that they ride for pleasure, and they worry that one or more might escape from the pasture or throw its rider and be struck by a car. What homeowners endorsement should Andrea consider to provide some protection if this should happen? a. Comprehensive b. Collision c. Farmers professional liability d. Livestock collision coveraqe 12. Fernando, who has a homeowners policy, hires a few workers during the summer to help with his vegetable garden. Fernando should consider all the following recommendations EXCEPT: a. add a farmers personal liability endorsement to his policy. b. find out whether his state requires workers compensation insurance on the farm workers. c. make sure his employees are US citizens, especially if his insurer adds an endorsement that excludes illegally employed farm employees. d. pay the workers in cash to avoid tax deductions