Chapter 23 Flashcards
The section 2 liability coverages in the homeowners policy provide the following two coverages:
Coverage E: Personal liability, $100,000 per occurrence
Coverage F: _________
medical payments to others, $1,000 per person
protects an insured when a claim or suit for damages is brought because of bodily injury or property damage allegedly caused by an insured’s negligence.
personal liability insurance
the minimum amount of liability insurance is ____ per occurrence. The insurance amount is a single limit that applies to both bodily injury and property damage liability on a per occurrence basis.
100,000
defined as an accident, including continuous or repeated exposure to substantially the same general harmful conditions, which results in bodily injury or property damage during the policy period. Can be a sudden accident, or it can be a gradual series of incidents that occur over time.
occurrence
under coverage E, the insurer also agrees to provide __ ___ even if the suit is groundless, false or fraudulent.
legal defense
as a practical matter, most personal liability suits are settled ____
out of court
defense coverage continues until _________
policy limits are exhausted by payment of a judgement or settlement.
personal liability insurance is based on legal liability. before the insurer will pya any sums for damages, you must be _______
legally liable
____ ____ to others is not based on legal liability. the insured is not required to be legally liable for coverage to apply.
medical payments
pays the reasonable medical expenses of another person who is accidentally injured while on an insured, resident employee, or animal owned by or in the car of an insured.
medical payments to others
the insurer will pay for necessary medical expenses incurred within __ years from the date of the accident. the medical expenses covered are the reasonable charges for medical and surgical procedures, x-rays, dental care, ambulances, hospital stays, etc.
3
medical payments coverage does not apply to _________
you or to regular residents of your household, other than a residence employee.
medical payments to others applies only to the following persons and situations:
- a person on the ___ ___ with the permission of an insured.
- a person off the insured location, if the bodily injury:
- arises out of a condition on the insured location or the ways immediately adjoining
- is caused by ___ of an insured
- is caused by a residence employee in the course of employment by an insured
- is caused by an ___ owned by or in the care of an insured.
insured location, activities, animal
Insured locations include the following:
- residence premises shown in the declarations
- any residence acquired during the policy period
- ____ ____ or __ ____
- nonowned premises where an insured is temporarily residing, such as a motel room
- vacant land other than farmland
- land owned or rented to an insured on which a residence is being built for an insured
- ___ ___ or ____ ___
- part of a premises occasionally rented to an insured for nonbusiness purposes
rented garage or storage unit, cemetery plots or burial plots
liability arising out of cars, trucks, mopeds, motorcycles, and motorbikes is ________
not covered in most cases.
vehicles that are covered in coverage E and F:
- vehicle in storage on an insured location
- vehicle used solely to ______
- vehicle designed to assist the handicapped
- vehicle designed for ___ ___ off public roads and is not owned by the insured
- liability arising out of the use of a ___ ___ ___ owned by an insured is also covered.
service a residence, recreational use, motorized golf cart
business activities that are covered by coverage E and F:
- activities for which no insured received more than ___ in total compensation for the 12 months prior to the policy period
- ___ ___ for which no money is received except for expenses
- providing home care services without compensation
- providing home daycare services to a relative
$2,000, volunteer activities
legal liability out of rentals covered by coverage E and F:
- if a house is occasionally rented and used only as a ____
- if part of residence is rented to others
- if part of insured residence is rented, and used as an office, ___, studio or ___ ___
- insured under age 21 who is involved in part-time or occasional self-employed business with no employees
residence, school, private garage
Section 2 additional coverages include:
- first aid expenses
- ___ expenses
- damage to property of others
- ___ ____ charges
claim, loss assessment
paid as an additional coverage, the insurer pays the court costs, attorney fees, and other legal expenses incurred in providing a legal defense.
claim expenses
paid by the insurer for expenses incurred by the insured for bodily injury covered under the policy.
first aid expenses
pays up to $1,000 per occurrence for property damage caused by an insured.
damage to property of others
damage to property of others also contains exclusions:
- property covered under section 1
- intentional property damage by an insured age __ or older
- property owned by an insured
- property owned by or rented to a tenant
- ___ liability
- act or omission in connection with the premises
- motor vehicles, aircraft, watercraft, or hovercraft.
13, business
the homeowners policy provides coverage of $1,000 for certain liability ___ ____
loss assessments
