3. Landlords can insure the property of their tenants as a part of their liability policy.
6. An endorsement does not cost an additional premium
9. Homeowner's package policies provide coverage for a higher premium than separate coverage for each type of risk.
3. False- Liability coverage has nothing to do with property. Every Landlord I've ever seen only provides coverage for the landlord, not the tenant.
6. Making an endorsement does not cost any additional premium but the actual change to the policy may make the premium go up or down. Ex: An Endorsement adding a car to a policy would make the policy go up because we are adding coverage, not because we simply made an endorsement.
9.False HO policies are almost always cheaper than getting the coverage from seperate policies.
Good luck on your test
3. False. The tenants property are of no concern or value to the landlord. it is the responsibility of the tenants to insure their own personal property.Your laptop is stolen. How does this affect the landlord? It does;t, so why should he insure it.?
6. Inconclusive/. An endorsement is an attachment to the policy, and it reflects the fact that additional coverage may have been purchased, or some coverage may have been dropped.
Example" You had a 2002 Ford covered, but you trade it in for a 2007 Ford. An endorsement will be issued dropping the old car and adding the newer/.n this case. there will be an increase in premium.
8. False, administrative costs are saved by combining as much as possible on one policy. .In some cases, you might not be able to purchase coverage against 1 risk unless you buy coverage for several risks.
3. false
You have to have "insurable interest" in the item. That means you have to have a financial interest in it. A land lord does not have a financial interest in the tenants couch. A tenant would be required to purchase a renters policy.
6. false
Some endorsements do not increase the premium of a policy. Frequently these are used to amend language in the policy. Some endorsements, such as those for protective devices, actually lower premium. But some, such as a personal articles floater or replacement cost coverage can increase premium.
9. false
One of the benefits of a package policy is a cost savings.
3. False. A landlord can seek coverage for the loss of their tenant's property if they are found LIABLE for the loss under the liability section of their Rented Dwelling/Commercial policy (or if for some bizarre reason they only have a liability policy) so in a sense it is true. However the landlord cannot specifically schedule the property of their tenant's under the liability section of the policy, therefore false. The question is poorly worded though.
6. True and false. An endorsement can generate no additional premium (therefore true), an additional premium (therefore false) or a return premium (therefore false). If the question read "An endorsement never costs an additional premium" then it would be straight false, but the way it's worded it can be both. Once again a poorly worded question.
9. False. Package policies are always more cost efficient, both for the insured and the insurer.
3. Neither true nor false. If there's an insurable interest, there's an option that can be added to some policies. It's rare, but it can be done.
6. Neither true nor false. Some do, some don't.
9. False.
3. False
6. Not true or false. Some endorsements are free and others are not.
9. False.