Question

10. Which of the following statements concerning FAIR plans is correct?

A. Coverage in each state is usually written by a syndicate of private insurers that are assessed for any losses of the plan if premiums are inadequate.

B. They primarily insure property that fails to meet current building codes.

C. They are federal plans that operate identically in every state.

D. They are designed primarily for high-value residential property.

11. Which of the following standard, unendorsed homeowners policy forms provides the broadest coverage for a free-standing single-family residence and its contents?

A. H0-2 Broad Form

B. H0-5 Comprehensive Form

C. H0-6 Unit-owners Form

D. H0-8 Modified Coverage Form

Answer 1

1) Solution: Coverage in each state is usually written by a syndicate of private insurers that are assessed for any losses of the plan if premiums are inadequate

Explanation: The coverage in FAIR Plans in each state is often written by a syndicate of private insurers who assess the losses of the plan in case the premiums are inadequate. They are designed to assist people to obtain property insurance.

2) Solution: H0-5 Comprehensive Form

Explanation: H0-5 Comprehensive Form unendorsed homeowners policy forms that gives the wide coverage for a free-standing single-family residential status.