4 - Dwelling Policy

Question 1

Real property

Answer 1

Building structure

Question 2

Personal property

Answer 2

Contents

Question 3

Endorsement

Answer 3

Form added to a policy that changes the policy’s provisions for better or worse.

Question 4

D.I.C.E

Answer 4

Declarations
Insuring agreement
Conditions
Exclusions

Question 5

Consideration clause

Answer 5

Applicants consideration of the amount of the premium paid and the company’s consideration to abide by the provisions.

Question 6

How many lines are on the SFP?

Answer 6

165

Question 7

Concealment

Answer 7

When the applicant intentionally omits a material fact

Question 8

Is money covered on a SFP?

Answer 8

No but HO sometimes covers up to $200

Question 9

Vacancy

Answer 9

Insured having moved out and took all of their stuff

Question 10

Unoccupied

Answer 10

Insured is temporarily gone but their furnishings are still on the premises

Question 11

If You Cancel the Policy

Answer 11

The refund is always short rate and the company keeps some of your money as penalty

Question 12

If The Company Cancels You

Answer 12

The refund is Pro Rata and you get back all of your unearned premium

Question 13

Cancellation for Nonpayment

Answer 13

Always considered pro rata

Question 14

Collateral Security Interest

Answer 14

The banks insurable interest position in the property

Question 15

Other Insurance or Pro Rata Liability

Answer 15

Takes multiple policies and splits them accordingly to add up to 100% times it hour going over the limit

Question 16

Abandonment

Answer 16

When the insured walks away from the property after a lost without assisting the insurance company in its settlement

Question 17

Negligence

Answer 17

Failure to act as a reasonable person

Question 18

Is there theft coverage or liability on a SFP?

Answer 18

No

Question 19

The SFP may be used to insure a…

Answer 19

Dwelling up to four units (four-pled) or a commercial structure.

Question 20

What are the 3 DP forms?

Answer 20

DP-1 Basic
DP-2 Broad
DP-3 Special

Question 21

DP-1 Basic Form

Answer 21

Named peril policy that mays ACV for structure and contents.

Question 22

DP-2 Broad

Answer 22

Named perils policy. Some extensions are in addition to coverage A, while others reduce it

Question 23

DP-3 Special

Answer 23

All Risk policy means anything NOT excluded IS covered.
Theft for items built into structure

Question 24

The Commercial Building and Personal Property Form describes…

Answer 24

Desks. Tables. Chairs. Office equipment. Machinery.

Don’t confuse with DP Form

Question 25

Coverage A

Answer 25

Dwelling

Question 26

Coverage B

Answer 26

Other structures

Question 27

Coverage C

Answer 27

Personal property

Question 28

Coverage D

Answer 28

Fair rental value (DP) or Loss of Use (HO)

Question 29

Extended coverage endorsement

Answer 29

To make the policy better by including additional perils

Question 30

WHARVVES

Answer 30

Wind - DD from windstorm
Hail - DD from hail
Aircraft - plane crashes on structure
Riot/Civil commotion - ppl tear down place
Vehicles - car hits place
Volcanic eruption - not earthquakes, shockwave or tremor
Explosion - in or out but NOT steam boilers or pipes
Smoke - from cooking unit, not fireplace

Question 31

The Dwelling Property Basic Form

Answer 31

Describes the property covered and gives extensions of coverage

Question 32

The Extended Coverage Endorsement

Answer 32

Adds additional named perils

Question 33

The Vandalism and Malicious Mischief Endorsement

Answer 33

Coverage for vandalism

Question 34

What’s a form of Professional Liability Insurance?

Answer 34

Errors and omissions insurance

Question 35

Coinsurance Penalty Equation

Based on $100k RC, $60k coverage

Answer 35

$60k DID carry
————————— X $10k loss = $7500
$80k SHOULD (80%)

$10k loss - $7500 company paid = $2500 out of pocket

Question 36

Coverage E

Answer 36

Additional Living Expense