Question about Section 6

Question about Section 6

by Deleted user -
Number of replies: 5

I have found questions asked that I do not find in the answers in the book or in the online study. For instance, Unit 6 (6.2 Deductibles) There is a True or False Question asked:

"For hurricanes, a separate minimum deductible of $500 or a maximum of 10% of the limit shown for coverage applies. The insurer must offer the insured the option of having the deductible apply either on a per event or an annual basis. Optional higher deductibles of $1,000, $5,000, $10,000 or higher may be purchased." True or False.

I have went through the book and I do not find in Unit 6 a place where it states "a separate minimum deductible of $500 or a max of 10% of the limit shown for coverage applies."

I said it was false because I couldn't find the $500 deductible or max of 10% listed. It said I was wrong. Please tell me where that is listed in the book? I feel like I must have missed something but I can't find it.

Thank you,

Joe

In reply to Deleted user

Re: Question about Section 6

by Deleted user -

Here is another one that I don't see: The questions asked: "What property is not covered on the building and personal property coverage form?" True or False?

"Property not covered" identifies several types of property not covered byt he policy including accounts, bills, currency, deeds, evidence of debt, money or securities, and unless specifically provided for bullion or manuscripts, animals (unless boarded or held for sale), autos for sale, paved surfaces, cost of ground preparation, property below basement or ground level, land, crops, bulkheads, pilings, piers, wharves or docks, retaining walls that are not part of the building itself, self propelled machines other than those that are held as stock for sale or which are licensed for road use or operated priincipally away from the premises, fences, outdoor radio or TV antennas (including, satellite dishes), wire, masts, outdoor signs that are not attched to the building (if attached, they are covered up to $1,000 per occurrence), and outdoor trees, shrubs, and plants.

I said False because of the outdoor signs that are not attached to the building (if attached, they are covered up to $1,000 per occurrence) part of the question. In the book that isn't included as something in the Property not covered". It states that Signs-whether attached or not, are covered up to $2,500 per sign in any one occurence.

The system said the answer was true and I got it wrong. I am not understanding how this question is true.

In reply to Deleted user

Re: Question about Section 6

by Jan Bradburn- -

Thanks Joe.

This number was recently changed by the state.  The amount of coverage per sign is $2500 for any one occurrence.  I will see that this is changed right away!

Jan

In reply to Deleted user

Re: Question about Section 6

by Jan Bradburn- -

Joe,

Thanks for your question.  A minimum deductible of $500 applies for hurricanes and "an OPTION exists for HIGHER deductibles."  I also could not find a reference to the maximum 10% limit although there is a reference to the deductible being a percentage of the value of the property which  is case in hurricane loss.  This used to be 10% and I don't believe I saw where this was changed, but I will research and revise the course if needed.

Thanks for pointing this out.

Jan

In reply to Deleted user

Re: Question about Section 6

by Deleted user -

Hello Joe, I ran across the same thing. However it says somewhere in the text the 500 deductible only applies if the building is insured for 100,000 or less.