Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Property > 3 - Standard Fire Policy and Dwelling Policy Forms > Flashcards

3 - Standard Fire Policy and Dwelling Policy Forms Flashcards

1
Q

The Standard Fire Policy (SFP) is the basis for…

A

-all non-marine property insurance contracts in NC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The SFP was originally written as…

A
  • a 165 line monoline “Named Perils” policy

- very basic property only coverage policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The SFP covers 3 named perils

A
  • Fire
  • Lightning
  • Removal
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Lightning

A
  • bolts of natural electricity produced by nature

- artificially generated electricity is NOT covered

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Removal

A
  • personal property located in an insured dwelling that in danger of destruction if not removed due to fire or lightning
  • automatically extended for 5 days on an all-risk of perils basis
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Extended Coverage Endorsement (ECE) in the SFP

A
  • increases the perils covered
  • Wind
  • Hail
  • Aircraft
  • Riot and Civil Commotion
  • Vehicles
  • Explosion
  • Smoke
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Additional Extended Coverage Endorsements for SFP

A
  • Vandalism and Malicious Mischief (VMM)

- Sprinkler Leakage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Exclusions from VMM

A
  • glass breakage and damage caused by theft

- if the building has been vacant or unoccupied for 60 consecutive days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

SFP Exclusions

A
  • Accounts, bills, currency, deeds, money, evidence of debt and securities
  • Acts of war, insurrection and civil war
  • insured’s failure to protect property from further damage
  • civil authority
  • increase in hazards without notifying the insurer
  • vacancy for a period of 60 consecutive days
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The SFP states that coverage begins and ends at…

A

-12:01 am in the geographic area where the property is located

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Maximum policy period for the SFP?

A

-7 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

The maximum an insured can receive is the specific value of the damaged/destroyed property up to the limits of liability

A

-Policy Limit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Cost to Repair or Replace

A

-company must notify the insured within 30 days after the proof of loss is submitted stating they want to repair, rebuild or replace

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Pro-Rata Liability

A
  • if there are 2 or more policies covering the same risk

- each policy will prorate payment of any claims based on the % of coverage carried n each policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Requirements in the Event of a Loss

A
  1. notify insurance carrier
  2. protect the property from further damage
  3. allow company to inspect the property
  4. supply company w/ complete list of inventory within 60 days
  5. cooperate w/ company investigating the loss and if requested, testify under oath
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

In the Event of a Loss, when does a complete list of inventory indicating which goods are damaged/destroyed must be supplied?

A

-within 60 days of the loss

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Settling a Claim

A

-insurer must settle the claim within 60 days after submission of the proof of loss

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Suit Against the Company

A

-insured has up to 3 years to bring a lawsuit against the company after meeting the requirements or filing the claim

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

If the insured cancels the SFP policy

A

-premiums paid in advance will be returned on a “short rate” basis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

If the insurer cancels the SFP policy

A
  • 5 days notice must be given to the insured

- 10 days notice must be given to any mortgagee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Loss Payee (Mortgagee) Rights SFP

A

-the right of a mortgage holder to collect on losses up to the mortgagee’s interest in the property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

DP-1

A

-Basic Perils Form

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

DP-2

A

-Broad Perils Form

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

DP-3

A
  • Special Form
  • Open Perils
  • All Risk of Perils
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Dwelling Policies are designed for properties that have no more than…

A
  • 4 apartment units

- 5 roomers/boarders per apartment unit

26
Q

Incidental occupancies are permitted for DPFs as long as…

A
  • they are operated by the insured (no more than 2 persons)

- provide a service, but NOT sales

27
Q

Coverage A

A
  • Dwellings

- Direct loss coverage

28
Q

Coverage B

A
  • Other Structures/Appurtenant

- Direct loss coverage

29
Q

Coverage C

A
  • Personal Property

- Direct loss coverage

30
Q

Coverage D

A
  • Fair Rental Value

- Indirect loss coverage

31
Q

Coverage E

A
  • Additional Living Expenses
  • Indirect loss coverage
  • designed for an owner occupied dwelling
  • pays insured for extra living expenses due to uninhabitable property due to a covered peril
32
Q

Coverage A: The following items are covered unless the loss is due to wind, hail, or the weight of ice, sleet or snow…

A
  • Outdoor Equipment
  • TV aerials
  • Awnings permanently attached to the dwelling
33
Q

Exclusions for Coverage A

A
  • buildings used for manufacturing
  • farm buildings
  • buildings rented to anyone except a tenant of the main dwelling
34
Q

Coverage B: The following items are covered

A
  • detached garage
  • detached storage shed
  • detached pump house
  • gazebos
35
Q

World-wide coverage of Coverage C for personal property taken from the premises

A

-10%

36
Q

Coverage C: Personal property moved to a new location that is intended to be a principal residence is covered automatically for up to how many days and is subject to policy expiration.

A

-30 days

37
Q

Coverage C: Personal Property Excluded on DPF

A
  • accounts, bills, coins, deeds, and currency
  • animals, birds or fish
  • boats (except rowboats or canoes)
  • credit or fund transfer cards
  • motor vehicles
  • paper records
  • outdoor lawns, plants, shrubs, and trees (DP-1)
  • aircraft
  • land
38
Q

Standard coverage D on DPF?

A

-will reimburse up to 20% of Coverage A for losses of rental income and payment for ongoing expenses

39
Q

If a civil authority prohibits use of the insured property because a covered peril damaged a neighboring property, payment will be made for a maximum of…

A

-2 weeks w/ Coverage D and E

40
Q

DP-1 standard perils covered

A
  • fire
  • lighting
  • internal explosion
41
Q

Extended Coverage Endorsement of DP-1

A

-Windstorm
-Civil Commotion
-Smoke Damage
-Hail
-Aircraft
-Vehicles
-Volcanic Eruption
-Explosion
-Riot
WCSHAVVER

42
Q

DP-2 standard perils covered

A
  • DP-1 + ECE +
  • damage by burglars
  • falling objects
  • freezing
  • weight of ice, sleet or snow
  • overflow of water from plumbing, heating or ac system
  • damage from artificially generated electricity
  • tearing apart, cracking, burning or building or a steam or hot water heating system
43
Q

DP-3 Coverage A & B vs C

A
  • A & B covers perils on an “all risk”

- C covers the broad form perils found in the DP-2

44
Q

Fire Department Service Charges with DPF

A

-$500

45
Q

Coverage for lawns, plants and trees

A

-5% of Coverage A on the DP-2 and DP-3

46
Q

DPF Deductible

A

-$250 per occurence

47
Q

If premium has not been paid, the insurer can cancel the DP by letting the insured know at least….

A

-10 days before the date of cancellation takes place

48
Q

The insurer may elect not to renew the Dwelling policy. The insurer may do so by delivering to the insured or mailing to the insured at the last known mailing address written notice at least _________ before the expiration date of this policy.

A

-30 days

49
Q

As long as the DP has been in effect for less than _____ days and is not a renewal, the insurer may cancel by letting the insured know in writing the cancellation takes effect at least _____ days before the cancellation takes effect.

A
  • 60 days

- 10 days

50
Q

When the DP policy has been in effect for ______ or more or at any time if it is a renewal with the insured, the policy may be cancelled if there has been a material misrepresentation of fact which if known to the insurer would have caused the insurer not to issue the policy or if the risk has changed substantially since the policy was issued. The insurer must give at least _______ notice before the date cancellation takes effect.

A
  • 60 days

- 30 days

51
Q

When the DP policy is written for a period of more than ______, the insurer may cancel for any reason at anniversary by letting the insured know at least ______ before the date cancellation takes effect.

A
  • 1 year

- 30 days

52
Q

Coverage L has a minimum Personal Liability benefit of…

A

-$100,000

53
Q

Coverage M claims must be made within ______ of the injury and minimum coverage is ______

A
  • 3 years

- $1,000

54
Q

DP-1, DP-2 and DP-3 Coverage A

A

-100% of insured value

55
Q

DP-1 Coverage B

A

-10% of Coverage A within policy limits

56
Q

DP-2 and DP-3 Coverage B

A

-10% of Coverage A outside policy limits

57
Q

DP-1, DP-2 and DP-3 Coverage C

A

-no minimum

58
Q

DP-1 Coverage D

A
  • 20% of Coverage A

- not an additional amount

59
Q

DP-2 and DP-3 Coverage D

A
  • 20% of Coverage A

- additional amount

60
Q

DP-1 Coverage E

A
  • 20% of Coverage A

- not an additional amount

61
Q

DP-2 and DP-3 Coverage E

A
  • 20% of Coverage A

- additional amount

Property (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions