Endorsements & LiabilityQuestion 96 of 158
Which pairing of endorsement to covered loss is CORRECT?
a.Identity Theft endorsement pays the stolen funds drained from the insured's bank account
b.Service Line endorsement pays for damage to plumbing INSIDE the dwelling walls
c.Service Line endorsement pays for damage to underground utility lines (water, sewer, power) on the insured's property between the street main and the home
d.Equipment Breakdown endorsement pays for normal wear and tear on appliances
Explanation
A Service Line endorsement covers the homeowner's privately owned underground utility lines (water, sewer, electrical, gas, communications) running from the public main to the home, including the cost of excavation. Identity Theft endorsements typically pay RECOVERY expenses (lost wages, attorney fees, notarization) - not the stolen funds themselves. Equipment Breakdown covers sudden mechanical or electrical failure, never normal wear and tear.
Law Reference: ISO HO 04 96 Identity Fraud Expense; ISO HO 23 70 Service LinePractice all 158 questions free — no signup required.
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