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Property and casualty insurance > Chapter 3 > Flashcards

Chapter 3 Flashcards

1
Q

3 forms in dwelling program

A
  1. Basic
  2. Broad
  3. Special
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2
Q

Basic Coverage

A

9 forms of loss or perils..coverage the least amount of things

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3
Q

Dwelling

A

The home that the policy owner lives in

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4
Q

Basic dwelling coverage (covers 9 things/perils) DP 00 01

A
  • Fire/lightning and Internal explosion
  • Windstorm or hail
  • Explosion
  • Riot/Civil commotion
  • Aircraft
  • Vehicles
  • Smoke
  • Volcanic eruption
  • Vandalism
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5
Q

Broad dwelling coverage (7 additional perils) DP 00 02

A
  • Damage by burglers
  • Falling objects
  • Weight of ice/snow
  • discharge or water or stream
  • Sudden and accidental tearing apart, cracking, burning, or bulging of appliances
  • Freezing
  • sudden and accidental artificially generated electric current being damaged
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6
Q

Additional Broad dwelling coverage

A

Lawns, Trees, shrubs
Breakage of glass
Collapse `

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7
Q

A through E property coverages

A 
A - Dwelling 
B - Other structures 
C - personal property ($250 deductible)
D - fair rental value 
E - Additional living expense
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8
Q

Actual cash value =

A

replacement cost - depreciation

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9
Q

DP 01 Basic coverage

A

Fire, lightning, explosion

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10
Q

DP 01 Basic form option 1

A

In addition to fire, lightning and explosion, it will also cover Windstorm/hail, smoke, explosion, aircraft/vehicle and riots.

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11
Q

DP 01 Basic form option 2

A

Includes everything in option 1 - including vandalism and volcanic eruption. (Cannot buy 2 without getting 1)

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12
Q

DP 02 Broad form

A

Includes everything from DP 01 including extended coverage perils and Vandalism.

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13
Q

DP 02 Broad theft Coverage

A

Can only be gotten if the insured owns the house and lives in the house. If Owner is vacant for more than 60 days in a row, they are no longer covered

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14
Q

DP 03 Special Form

A

All perils are included in coverage EXCEPT those that are listed as exclusions

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15
Q

Coverage A B C D and E

A 
A - Dwelling
B - Other structures 
C - personal property
D - Fair rental value 
E - additional living expenses
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16
Q

Homeowners policy - forms (6) (a policy is the same as a form)

A 
Broad forms (HO-02)
Special forms (HO-03)
Renters/Tents forms (HO-04)
Comprehensive forms (HO-05) 
Condominium forms (H0-06) covers YOUR condo. Not common areas 
Modified forms (HO-08) Old, historic homes
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17
Q

HO - 02 covered perils (Broad)

A 
Fire
Lightning
Wind 
Airplane 
Car/vehicle 
Explosion 
Civil commotion 
Smoke
Vandalism 
Falling objects 
Ice/snow/sleet weight
Buldging of a building 
Volcanic activity 
Power surge that destroys computer/tv
a few more
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18
Q

HO -03 (special)

A

Everything that is covered in HO - 02 plus an open peril (whatever is excluded in the form wont be covered

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19
Q

H0 - 04 perils

A

Renters - Same thing as H0 -02 just for renters

20
Q

HO - 05

A

Comprehensive - building and contents an open peril..gives you most things

21
Q

HO - 06

A

Condominium - Same as HO - 02

22
Q

HO - 08

A

Old or historic homes - Same as HO - 02 I think

23
Q

Two sections in Home owners coverage

A

Section 1 - property

Section 2 - Liability

24
Q

Section 1 (Coverage A - D)

A

A - dwelling
B - Other Structures (detached garage, etc)
C - Personal Property
D - Loss of Use (if the house burned down you would have to get hotel. This will give you money to pay for hotel room)
All forms use a basic deductible of $250

25
Q

Section 2

A

E - Personal Liability (I am definitely in the wrong, I did something)
F - Medical Payments to others (Usually much smaller dollar amount) (friend slips down my stairs. I didn’t do it but they hurt they bum bum lets help them pay)

26
Q

Coverage A

A

Dwelling - the home. also covers attached garages or sheds or whatever

27
Q

Coverage B

A

Other structures - need to be detached from home. will cover up to 10% of however much A is. (If home is 1 milli then theyd coverage garage up to 100K)

28
Q

Coverage C

A

Personal property. Again, a percentage. You are covered worldwide.

29
Q

Coverage D

A

Loss of use. Paying for added expenses

30
Q

Additional HO Property coverages:

A
  • Debris removal
  • Lawns, plants, trees
  • Removal (If gma rock gets smashed we be covered)
  • Reasonable cost of repairs
  • Fire damage service charge (up to 500)
  • Loss assessment (up to 1000)
  • Collapse
  • Landlord furnishings
31
Q

actual cash value vs replacement Cost

A

ACV - What the product is worth at the time
Replacement Cost - Without any deduction (used when replacing dwellings usually)

ACV = replacement cost - depreciation

32
Q

Liability coverage - Coverage E

A

Personal Liability. Covers property damage and bodily injury

33
Q

Liability coverage - Coverage F

A

Medical payments to others - basic limit of 1000. (can be increased)

34
Q

Builders risk

A

This is insurance to a building that is being built.
Things that are included no extra charge:
-Debris removal
- fire truck service charge
-Preservation of property

35
Q

BPP coverage form

A

Business Building and personal property: It covers building and personal property in (OR WITHIN 100 FEET) of building

36
Q

Commercial Inland Marine available coverages:

A

Accounts receivable
Bailee’s Customer (Coverage for when you break something that is a customers) (popular at laundry mats)
Commercial articles (Commerical camera, musical instruments, etc.)
Contractors equipment (mobile equipment that is rented or borrowed)
Electronic data Processing

37
Q

Farm Coverage forms (this is apart of CPP)

A

Basic, Broad, Special
Coverage A - D (same as HO)
Coverage E F G (These are farm specific)

38
Q

Farm liability

A

Coverage H - J

H - Bodily injuries and property damage arising from farming operations

I - personal and advertising injury

J - reasonable medical expenses regardless of fault (for up to 3 years)

39
Q

Livestock Coverage

A

named peril coverage

40
Q

Mobile Agricultural and machinery equipment

A

open peril coverage

41
Q

BOP (Business owners Policy)

A

Prepackaged policy. It is for small - medium sized businesses.

42
Q

Who is eligible for a BOP?

A 
Office Buildings 
Fast food 
convinent stores 
mercandile and service establishments 
apartments and condos 
some contractors
43
Q

BOP section 1

A

Covers property. The physical building property OR could do business personal property. OR can cover both

44
Q

Combined Single

A

A specific amount of coverage (aka 500k) that covers bodily injury and property damage that happens from one specific event (someone ram ranches their car into your porch while you be smoking a stogie)

45
Q

Eligible causes of a flood (4)

A

overflow of tidal waters
Mudflow
unusual and rapid accumulation of runoff waters
abnormal erosion of shorelines caused by flooding

Property and casualty insurance (6 decks)

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