Chapter 12. Flashcards
Property Insurance
Provides protection against most risks to property, such as fire, theft and some weather damage.
Liability Insurance
Policy that covers civil liabilities to third parties, arising from bodily injury, property damage, or other wrongs due to the action or inaction of the insured.
Package Policy
Insurance policy that combines coverage from two or more types of insurance (such as property and liability) into one policy.
Monoline Policy
A policy containing a single coverage part plus the common policy conditions and common declarations.
Actual Cash Value
A method of valuing insured property.
Replacement Cost
Normal cost of exact duplication of a property as of a certain date.
Deductible
The amount of expenses that must be paid out of pocket before an insurer will pay any expenses.
Umbrella Policy
Insurance policy that covers amounts above those covered under one or more other primary policies, and which does not pay until the losses exceed a certain sum. Also called excess insurance.
If the Dwelling Coverage on a property is equal to $500,000, what will the Other Structure’s Coverage amount to…?
50000
The Dwelling Coverage on a property is equal to $600,000. If the Personal Property Coverage is equal to 75% of the Dwelling Coverage, what is the amount of Personal Property Coverage on the property…?
450000
Which of the following coverage is the main coverage in any homeowner’s policy…?
Dwelling Coverage
Loss of Use coverage is also known as…?
Coverage D
Which of the following is an example of a standard insurance policy with single line coverage…?
HO-1
An HO-5 policy is also known as what…?
Comprehensive Form Policy
- The Market Value Policy is also referred to as…?
HO-8 (12.6)
This type of insurance policy covers bodily injury, property damage, physical injury, and advertising injury…?
Commercial Policy
Which of the following coverage is the main coverage in any homeowner’s policy…?
Dwelling Coverage
An HO-5 policy is also known as what…?
Comprehensive Form Policy
This type of insurance policy covers bodily injury, property damage, physical injury, and advertising injury…?
Commercial Policy
commercial policy covers bodily injury, personal injury, advertising injury, and…?
Property damage
This type of policy typically provides discounts on each line of the policy…?
Package Policy
This type of policy is recognized as the most widely used policy for a homeowner…?
HO-3
The normal cost of an exact duplication of a property as of a certain date is known as what…?
Replacement Cost
An HO-4 insurance policy typically covers which of the following…?
Cooperative owners
Other structure’s coverage’ is also known as…?
Coverage B
Personal Property Coverage is also known as…?
Coverage C
An HO-2 policy is also known as what type of policy
Broad Form Policy
Coverage B’ is also known as…?
Other Structure’s Coverage
This policy provides protection against most risks to property, such as fire, theft and some weather damage…?
Property Insurance
This type of policy is recognized as the most widely used policy for a homeowner…?
Special Form Policy
An umbrella policy is also referred to as what…?
Excess Insurance
This type of insurance policy is provided to tenants and cooperative owners…?
HO-4
An HO-6 insurance policy typically covers which of the following…?
Condominium owners
A commercial policy covers bodily injury, personal injury, property damage and…?
Advertising Injury
Other Structure’s Coverage is typically equal to what percentage of Dwelling Coverage…?
10 (Percent %)
If the Dwelling Coverage on a property is equal to $500,000, what will the Other Structure’s Coverage amount to…?
50000
If Coverage A on a property is equal to $325,000, what will be the amount of Coverage B…?
32500
What is the main coverage in any homeowner’s policy…?
Coverage A
Which of the following coverage is the main coverage in any homeowner’s policy…?
Dwelling Coverage
In this type of policy, the homeowner can select coverage for a single type of event, including fire, wind, or water damage…?
HO-1
In this type of policy, any event NOT specifically excluded by the owner is included in the policy…?
Special Form Policy
This type of insurance policy typically covers a tenant…?
HO-4
This type of insurance policy covers bodily injury, property damage, physical injury, and advertising injury…?
Commercial Policy
This policy provides protection against most risks to property, such as fire, theft and some weather damage…?
Property Insurance
Thomas recently purchased a new home. As a requirement by his mortgage lender, he obtained property insurance on the home. Thomas selected a policy in which he specifically excluded earthquake and wind damage from the policy. Every other event is covered in the policy. What type of policy did Thomas select…?
Special Form Policy
If the Dwelling Coverage on a property is equal to $500,000, what will the Other Structure’s Coverage amount to…?
50000
Coverage C typically amounts to what percentage of Coverage A…?
75 (Percent %)
Typically, Coverage B amounts to what percentage of Coverage A…?
10 (Percent %)
Coverage D is also known as…?
Loss of Use Coverage
Which of the following is an example of a standard insurance policy with single line coverage…?
HO-1
A Special Form Policy is also known as…?
HO-3
Personal Property Coverage typically amounts to what percentage of Dwelling Coverage…?
A policy containing a single coverage part plus the common policy conditions and common declarations is known as a…?
Monoline Policy
Personal Liability Coverage is also known as…?
Coverage E
