Q&A Hero

Q: The exact layout of a subdivision is usually shown in detail on the a. deed. b. plat. c. plot. d. CC&Rs.

Q: A strip of land that separates one land use from another is called a a. buffer zone. b. median strip. c. non-use zone. d. restricted zone.

Q: When there is a space specified along each property line in a neighborhood within which no building may be erected, it is called a. a sidewalk. b. a commercial lot. c. a setback. d. an offset.

Q: When land that was previously zoned for higher-density use is rezoned for lower-density uses, it is called a. spot zoning. b. buffer zoning. c. conditional use. d. down zoning.

Q: When a property owner obtains permission to open a small business in a residential neighborhood, it is an example of a. nonconforming use. b. grandfathering. c. down zoning. d. spot zoning.

Q: Kelly finds that her intended improvement, a veterinary clinic, is allowed by the zoning classification of her land only if she gets specific approval for that single use. This is most likely an example of a. a nonconforming use. b. a variance. c. an illegal spot zoning. d. a conditional use permit.

Q: Denise applied for a permit to build a greenhouse in her back yard. Her request was denied because of setback requirements. She appealed at a hearing before the planning board and subsequently had her permit approved. Denise obtained a. a variance. b. an offset deed. c. a plat approval. d. an encroachment permit.

Q: A landowner wishing to deviate slightly from existing zoning codes would ask for a. an amendment to the zoning ordinance. b. a variance. c. a new zoning ordinance. d. exclusion from zoning ordinances.

Q: The difference between a variance and a nonconforming use is that a. a variance changes the permitted use; nonconforming use does not. b. nonconforming use changes zoning; a variance does not. c. the nonconforming use first occurs after the zoning changes. d. the variance was in effect before the zoning.

Q: An existing structure that would be prohibited under current zoning laws is called a. a restrictive zone use. b. a nonconforming use. c. an impact statement property. d. a land use restriction.

Q: A change in zoning for a parcel of land from single-family dwellings to apartment use requires a a. zoning ordinance amendment. b. variance. c. zoning release. d. release of deed restrictions.

Q: The word variance in land use applies to a. an open-ended use permit. b. loan rates which raise and lower during the term of the loan. c. property taxes. d. zoning.

Q: Examples of zoning ordinances are a. condemnations. b. prescribed architectural design. c. density limitations. d. house color.

Q: Which of the following is usually a private decision and unaffected by zoning regulations? a. Setback requirements b. Nonconforming uses c. Variances d. House color

Q: Local residents may best gain control over the future development of their community by paying attention to a. land use covenants. b. eminent domain purchases by private individuals. c. restricting the trade of developers and real estate agents. d. public zoning decisions.

Q: Zoning is a. a power originating from the sovereign state governments. b. exercised to regulate types of uses, use densities, subdivision requirements, and racial and ethnic quotas. c. exercised by building inspectors. d. little used and of declining importance in real estate.

Q: The authority of government to control land use is derived from the right of a. escheat. b. eminent domain. c. property taxation. d. police power.

Q: In the case of a contradiction between existing zoning and new deed restrictions, which would prevail? a. Zoning b. Deed restrictions c. Whichever is the more restrictive d. The least restrictive

Q: A licensed agent must be diligent to determine the existing zoning and building regulations for the property that he wishes to sell. Which of the flowing would cause the fewest problems to the agent and his buyer? a. A home, which lies two feet outside the offset line, described on the deed. b. A conforming business that produces such noise and odors as to be an annoyance to a nearby neighborhood. c. A garage that was build by the seller without a building permit and slightly on his neighbor's lot. d. A multi-family apartment building that is a non-conforming use.

Q: A licensed agent must be aware of local zoning ordinances for all of the following reasons EXCEPT a. zoning requirements are material facts. b. licensees must report zoning violations to the proper authorities. c. the agent must inform his principal of the effects of zoning on his property. d. the law of agency requires knowledge and competence regarding permitted uses of listed property.

Q: Policies that cover a large number of named perils are known as ____________________ form policies (HO-2).

Q: The insured is one who is ____________________ by insurance.

Q: An endorsement that periodically increase insurance coverage is known as ____________________ guard.

Q: ____________________ liability, also called public liability, is the financial responsibility one has toward others as a result of one's actions or failure to take action.

Q: An agreement by the insurer to modify a basic policy, also called a rider or attachment, is known as a(n) ____________________.

Q: ____________________ insurance is the foundation of property damage policies.

Q: A homeowner policy would typically cover the house and garage but not other structures on the property such as a guesthouse or garden shed.

Q: Generally, a property owner is liable when there exists a legal duty to exercise reasonable care and the property owner fails to do so.

Q: Medical payments pay for the treatment of injuries without the need to determine fault.

Q: An insurer may suspend an insurance policy if the property is left vacant beyond a specified time.

Q: A homeowner policy is a policy that combines property and liability policies designed for residential owner-occupants.

Q: An agreement by the insurance company to extend coverage to perils not covered by the basic policy is called an insurable interest.

Q: "Old for old" means that the policy pays only the depreciated cost.

Q: "New for old" means that the policy pays replacement cost.

Q: There are no exclusions in an all-risks policy.

Q: Actual cash value is the new price minus accumulated depreciation and is, in effect, "new for old".

Q: To cover personal property and any additions or alterations to the unit not insured by the association's policy, a condominium unit owner's form (HO-6) is available.

Q: Medical payments coverage provides payment regardless of who is at fault.

Q: Forms HO-3 and HO-5 are typically not designed for single-family homes.

Q: An endorsement, also called a rider or attachment, is an agreement by the insurer to modify a basic policy.

Q: Fire insurance is the foundation of property damage policies.

Q: An insurer may suspend an insurance policy if the insured allows the hazard exposure to the insurer to increase beyond the risks contemplated when the policy was issued.

Q: Section II of a homeowner insurance policy provides liability protection for the named insured but not the members of the named insured's family who lives with the insured.

Q: In a typical homeowner's policy, section I deals with losses to the insured's property and section II covers liability of the insured and family.

Q: An "all-risk" homeowner policy (HO-C) does not include coverage for damage resulting from war or nuclear accident.

Q: Typically, an owner of real estate is not exposed to losses by other persons being injured on his property.

Q: The purchaser of a new home may protect himself against loss due to structural defects by a. having the home inspected before purchase. b. purchasing insurance under the Home Owners Warranty Program. c. both a and b. d. neither a nor b.

Q: Among the following, who does NOT hold an insurable interest? a. A property owner. b. The listing broker. c. A mortgage lender. d. The tenant.

Q: The owner of a rented property may insure that property by obtaining a. an endorsement to an existing homeowner policy. b. a landlord package policy. c. both a and b. d. neither a nor b.

Q: If the insured wishes to cancel his New York fire form policy, a. he must give a 5-day notice. b. he will receive a prorated refund. c. his refund will be based on short-rate premiums. d. he will receive no refund.

Q: Lenders on real estate mortgages may require that the borrower provide a. a replacement cost policy on the full amount of the loan. b. insurance in an amount equal to the purchase price of the property. c. inflation guard coverage. d. content coverage.

Q: Flood insurance can be purchased for a. structures and contents. b. public liability. c. medical expenses. d. damages and legal costs.

Q: If a liability claim arises under Section II of a homeowner's policy, the insurance company will pay for a. damages up to the policy limits. b. damages up to the policy limits plus the legal costs of defense. c. damages and legal costs up to the policy limit. d. damages beyond policy limits in certain cases.

Q: All of the following mortgages require either flood insurance or a certificate that the mortgaged property is not in a flood zone EXCEPT a. VA-guaranteed mortgages. b. FHA-insured mortgages. c. mortgages carried back by sellers. d. conventional mortgages secured from federally chartered savings and loans associations.

Q: A landlord package policy provides coverage for a. property damage. b. liability. c. loss of rents. d. all of the above.

Q: The lender on a condominium unit will require proof that the a. unit owner carries liability insurance. b. unit owner carries contents insurance. c. condominium association carries insurance on the common elements. d. condominium association carries insurance on the individual owner's contents.

Q: An insurance policy which fixes the insurance company's liability to the insured to the actual cash value of the insured property is said to provide a. "old for new" coverage. b. "new for old" coverage. c. "old for old" coverage. d. "new for new" coverage.

Q: When a property is mortgaged to a lending institution, the lender will usually require the owner to provide a. fire and extended coverage on structures. b. personal property coverage. c. medical payment coverage. d. liability coverage.

Q: The liability coverage of a homeowner policy a. applies to the insured premises. b. provides protection away from the premises. c. both a and b. d. neither a nor b.

Q: Medical payments provided under a homeowner policy can be paid to a. the named insured and family members. b. guests of the insured on the premises. c. claims arising from business pursuits. d. none of the above.

Q: If a property is rented, the landlord should make certain that he has a. adequate liability coverage. b. adequate property damage coverage. c. adequate property damage and liability coverage. d. the renter purchases all insurance.

Q: A homeowner's insurance policy will NOT protect against which of the following? a. Public liability directly connected with the insured property. b. Damage to household goods contained in the insured premises. c. Flood damage to the insured premises. d. Theft of personal property.

Q: Coverage under any homeowner policy can be extended by adding endorsements covering a. appreciation on the value of the property. b. worker's compensation. c. both a and b. d. neither a nor b.

Q: The inflation guard endorsements are available and automatically increase property damage coverage by a. 1.5% b. 2% c. 2.5% d. all of the above.

Q: The war clause exemption in property insurance policies includes losses or damage caused by a. insurrection. b. enemy attack. c. usurped power. d. all of the above.

Q: The financial responsibility which one has to others as a result of one's actions or negligence is known as a. personal liability. b. public liability. c. both a and b. d. neither a nor b.

Q: A property damage or public liability policy a. can be cancelled at any time by the insured. b. cannot be cancelled by the insured. c. can be cancelled at any time by the insurer. d. can be cancelled only after 30 day's notice by either party.

Q: Coverage for additional perils can be obtained by a. purchasing a separate policy. b. adding an endorsement to a regular fire insurance policy. c. both a and b. d. neither a nor b.

Q: A typical HO-A homeowner's policy covers damage caused by a. mudflow. b. civil war. c. freezing water pipes. d. earthquakes.

Q: A typical homeowner insurance policy does not cover a. the dwelling. b. living expenses while damage to the residence is being repaired. c. personal property within the dwelling. d. automobiles in the garage on the property.

Q: As an owner of real estate, one is exposed to losses by a. damage to the property. b. other persons being injured on the property. c. both a and b. d. neither a nor b.

Q: An insurance endorsement is also known as a. a rider. b. an attachment. c. an assignment. d. both a and b.

Q: The money paid for insurance is called the insurance a. rider. b. endorsement. c. peril. d. premium.

Q: The New York fire insurance form does not provide coverage for losses a. by fire. b. by lightning. c. sustained while removing property from damaged premises. d. by flood.

Q: The New York fire insurance form a. was originally enacted by the legislature of New York state. b. provides the foundation for most property damage insurance policies in this country. c. both a and b. d. neither a nor b.

Q: The concept of insurance is to a. reimburse the insured for financial losses. b. insure that a loss-causing event will not occur. c. both a and b. d. neither a nor b.

Q: A landlord policy combines property damage, liability, medical payments, and loss of ____________________.

Q: If the face amount of the homeowner's policy is less than 80% of replacement cost, the ____________________ equals the insurance carried divided by 80% of today's replacement cost times today's cost to replace the damaged portion.

Q: Actual ____________________ value s the new price minus accumulated depreciation and is, in effect, "old for old".

Q: If one rents rather than owns, they would choose the ____________________ form (HO-4).