Author Question: Tom and Tammy Evans were ready to purchase a home. The home was to serve as collateral for their ... (Read 94 times)

chads108 · **on:** Jul 11, 2018

Tom and Tammy Evans were ready to purchase a home. The home was to serve as collateral for their mortgage loan. Two insurers declined to insure the home, citing an adverse CLUE report.

Why would an insurer reject a homeowners insurance application because of an adverse CLUE report?
A) because the previous owner had defaulted on the mortgage loan
B) because the home is located in an area where the zoning law had been changed
C) because there had been property insurance claims filed on the home's previous owner
D) because the home is located in an area that does not have a certified fire department

Question 2

Which of the following losses would be covered under the medical payments coverage of the Homeowners 3 policy?

A) injuries to another person arising out of the insured's negligent operation of an automobile
B) medical payments resulting from the transmission of a communicable disease
C) injury to a resident employee at the insured's home
D) workers compensation medical payments