21) You have an HO policy with the following limits:

A = $50,000 (dwelling)

B = $5,000 (other structures)

C = $25,000 (personal property).

A tornado strikes your property. You lose your house, which is worth $40,000 at the time of the loss. You also lose an unattached shed worth $8,000, and personal property worth $30,000. You will collect:

A) $78,000

B) $70,000

C) $58,000

D) none of the above

32) Which of the following perils is not covered by the HO-3 form?

A) Windstorm or hail

B) Riot or civil commotion

C) Sudden and accidental smoke damage

D) Volcanic earthquakes

34) Ira is a homeowner covered by an HO-3 policy. He lives with his wife and three children, ages 14, 16, and 19. Who in the household is not covered for personal liability by the HO policy?

A) Both the 16 and 19-year old children

B) Any of the children

C) The 19-year-old child

D) All of the persons listed are covered.

36) With respect to the HO dwelling coverage, select the most accurate statement.

A) If the amount of insurance carried divided by 80% of the replacement cost equals 1 or greater, the company will pay the replacement cost minus the deductible, but no more than the policy limit.

B) If the amount of insurance carried divided by 80% of the replacement cost equals 1 or greater, the company will pay replacement cost minus the deductible.

C) If the amount of insurance divided by 80% of the replacement cost equals 1 or greater, the company will multiply that result by the loss, subtract the deductible, then pay that amount.

D) The insurer must only pay actual cash value for any loss unless the insured has insurance equal to 100% of the replacement cost of the property.

39) Mary's house catches on fire. $9,000 of her jewelry is destroyed by the fire. What is the maximum amount her HO-3 policy will pay for this loss?

A) $12,000

B) $9,600

C) $2,500

D) $1,500