Chapter 3

Question 1

• property coverage for dwelling, contents, or both

- solely for properties used for residential purposes

Answer 1

Purpose an eligibility

Question 2

• agreement
• definitions
• deductible
• coverages, including other coverages
• perils insured against
• general exclusions
• conditions

Answer 2

Form structure

Question 3

Basic (DP1)
Broad (DP2)
Special (DP3)

Answer 3

Coverage forms

Question 4

• Named peril
• No minimum amount of insurance required
• basic perils

Answer 4

Basic (DP1)

Question 5

• named Peril

- basic perils+ extended coverage perils

Answer 5

Broad (DP2)

Question 6

• Open Peril

- basic perils +extended coverage perils+ V&MM

Answer 6

Special (DP3)

Question 7

Dwelling and premises, must be used principally for dwelling or residential purposes

Answer 7

Coverage A, dwelling

Question 8

Separate structures at the same location, such as detached garages and other outbuildings

Answer 8

Coverage B- other structures

Question 9

Can be purchased to cover personal property usual to a residence

Answer 9

Coverage C-personal property

Question 10

Applies of property under coverage a, B, or C becomes damaged or destroyed

Answer 10

Coverage D, fair rental value

Question 11

Only available if broad or special form dwelling coverage is written

Answer 11

Coverage E, additional living expenses

Question 12

• policy period
• insurable interest and limit of insurance
• concealment or fraud
• Los settlement
• duties after a loss
• appraisal
• subrogation
• Etc.

Answer 12

Conditions

Question 13

• ordinance or law
• Earth movement
• water damage
• Power failure
• neglect
• war

Answer 13

General exclusions

Question 14

Remains of anything broken down or destroyed

Answer 14

Debris

Question 15

Mine are uses that are accessory to or support the predominant occupancy (piano teacher giving lessons in her home)

Answer 15

Incidental occupancy

Question 16

An incident or event

Answer 16

Occurrence

Question 17

A law that must be complied with

Answer 17

Ordinance

Question 18

When a property’s insurance coverage exceeds it’s cash value

Answer 18

Over insurance

Question 19

W
H
A
R
V
E
S

Answer 19

Windstorm 
Hail 
Aircraft/vehicles
Riot/civil commotion 
Volcanic eruption 
Explosion 
Smoke

Question 20

W.C SHAVER

Answer 20

Windstorm
Civil commotion
Smoke
Hail
Aircraft
Vehicle and volcano
Explosion
Riots