Alabama Personal Lines Insurance License Exam — All Questions
2 questions
A homeowner with a valuable diamond ring worth far more than the policy's jewelry sublimit can obtain full, itemized coverage by adding a:
- a.Higher deductible
- b.Scheduled personal property (personal articles) endorsement✓
- c.Loss-of-use endorsement
- d.Liability umbrella
A scheduled personal property endorsement (personal articles floater) lists specific high-value items such as jewelry, furs, or fine art with individual limits based on appraisals, providing broader, often open-perils coverage above the policy's sublimits and frequently with no deductible. Raising the deductible or adding loss-of-use or umbrella coverage does not solve the problem of a low internal sublimit on valuable items.
A personal umbrella policy is used to:
- a.Replace the homeowners property coverage
- b.Cover damage to the insured's own car
- c.Provide first-dollar coverage with no underlying policy
- d.Add liability limits above the insured's home and auto policies✓
A personal umbrella policy adds an extra layer of liability limits above the insured's underlying home and auto liability coverage, and it may cover some claims the underlying policies exclude, subject to a self-insured retention. It generally requires the insured to maintain specified underlying limits. It is excess liability protection, not property coverage and not a substitute for underlying insurance.