Chapter 3 and 4 LIGHTNING

Question 1

what is a tort???

Answer 1

wrongful act!! other than a breach of contract or crime that violates a duty or the rights of another and for which compensation may be sought from the responsible party

Question 2

What characterizes an intentional tort?

Answer 2

deliverate act that harms another and for which injured party is permitted by law to sue the wrongdoer!

Question 3

What does liability insurance provide coverage for?

Answer 3

MOST unintentional torts and excludes intentional torts

Question 4

What is vicarious liability??

Answer 4

It is liability assigned to one party for the conduct of another, based solely on a relationship between the two

Question 5

Who gets compensatory damages?

Answer 5

Damages are awarded to an injured party for ACTUAL loss sustained

Question 6

WHat are special damages?

Answer 6

compensatory damages for tangible expenses such as bills, loss of earnings, costs to repair damaged property

Question 7

What are general damages?

Answer 7

Compesnatory damages for PAIN SUFFERING mental anguish and similar types of losses that CANNOT be objectively calculated

Question 8

What is bodily injury liability

Answer 8

legal liability arising from physical injury! including sickness disease and death caused by acts or omissions of an insured. INcludes medical bills, lost wages, mental anguish etc.

Question 9

What does property damage liability pay?

Answer 9

pays for the legal liability arising from physical damage to tangible property, including loss of use of that property caused by the acts of an insured. Costs include actual cost of repair or replacement as well as LOSS OF USE

Question 10

what does medical payments coverage pay for?

Answer 10

Pays for necessary medical, surgical, x-ray, dental, ambulance, funeral… incurred by third party on insured’s premises REGARDLESS OF FAULT

Question 11

what is PERSONAL INJURY LIABILITY

Answer 11

legal liability arising from wrongful conduct of the insured, resulting in injuries to one’s MENTAL OR EMOTIONAL wellbeing and NOT bodily injury or property damage

Question 12

what is an accident??

Answer 12

sudden, unforeseen event from which loss or damage results.

Question 13

What is negligence??

Answer 13

a TORT!!! the failure to use the same degree of care a reasonable and prudent person would use given the same knowledge and set of circumstances

Question 14

what is contributory negligence??

Answer 14

a defense for negligence in which the claimant was ALSO NEGLIGENT to any degree

Question 15

whats comparative negligence??

Answer 15

calls for reduction of damages in proportion to teh degree of the claimant’s negligence

Question 16

Absolute liability proof of fault???

Answer 16

claimant does not have to prove fault in order to collect damages

Question 17

Strcit liability????

Answer 17

legal principle that imposes legal liability based on conditions, activities or products that exhibit high hazards.

NOTE- the degree of care exercised by the insured isn’t considered when making determination of liability

Question 18

what does an excess policy pay?

Answer 18

pays a covered claim after the primary policies exhaust their limits or deny coverage

Question 19

what is a pro rata loss payment provision?

Answer 19

Provision that requires each insurer to pay its share of a loss in proportion to the coverage of that policy as it relates to the total of all insurance on the risk

Question 20

What is the limit of liability

Answer 20

dollar amount of coverage specified for a liability of loss

Question 21

what is the aggregate limit?

Answer 21

maximum amount payable for loss per location or per person from all occurrences within a policy period- REGARDLESS of number of separate accidents

Question 22

What is the split limit of liability?

Answer 22

amount of coverage divided between bodily injury and property damage

Question 23

what is combined single limit?

Answer 23

policy limit applied to either bodily injury or property damage as needed in any combination

Question 24

whats eligible for dwelling property program?

Answer 24

dwellings must be used principally for residential purposes! can’t contain more than 4 units and can have no more than 5 roomers or boarders

Question 25

What are the DP-1 Basic Form perils?

Answer 25

fire or lightening and internal explosion!

Question 26

DP-1 Basic Form Extended coverage also includes?

Answer 26

windstorm or hail, explosion, riot or civil common, smoke and volcanic eruptions. peril of vandalism or malicious mischeif separate

Question 27

How are losses to the DP-1 dwelling paid?

Answer 27

actual cash value basis to the insured

Question 28

What are the DP-2 Broad Form Perils?

Answer 28

DP-1 perils, EC (extended coverage), Vandalism or malicious mischief AND: damage by burglars, falling objects, weight of ice, snow sleet and accidental dischrage or overflow of water or steam

Question 29

Coverage A applies to what? used for what?

Answer 29

Applies to dwelling described in declarations, used mostly for residential pruposes including strcutures attached to dwelling (garage, carport, breezeway deck)

Question 30

What does the DP-3 special form cover?

Answer 30

dwelling and other structures on an open perils basis except for perils specifically excluded

Question 31

Whats the Coverage A limit of insurance///

Answer 31

It appears ont he declarations as a specific limit! It is chosen by the named insured at the time coverage is applied for and should represent dwelling’s repacement value

Question 32

What does Coverage B apply to??

Answer 32

other strucutres on the location if they are separate or detached from the dwelling by a clear space, fence, or utility line

Question 33

What is the coverage B limit of insurance?

Answer 33

up to 10% of coverage A limit and automatically provided under each of dwelling forms

Question 34

What does coverage C apply to?

Answer 34

household and personal property usual to the occupancy as a dwelling if it is owned by the insured or by members of the insured’s family who reside with the insured

Question 35

What does Coverage D provide insurance for?

Answer 35

indirect losses that occur as a result of direct losses to property under coverages A,B, or C that are covered by the policy

Question 36

What is the COverage D limit of insurance?

Answer 36

up to 20% of the coverage A limit! automatically provided under eacho f the dwelling forms

Question 37

Does the coverage B limit increase the amount of insurance?

Answer 37

Under the Dp-1, the coverage B limit does not increase the amount of insurance; under DP-2 and DP-3 forms, this limit is additional insurance

Question 38

What does Debris Removal cover?

Answer 38

pays insured’s reasonable expenses for removal of debris of covered property if property is damaged by insured peril

Question 39

what does Improvements Alterations and Additions cover?

Answer 39

pays a tenant up to 10% of coverage C limit for improvements made or acquired at the insured’s expense to that part of the described location he or she rents

Question 40

Reasonable REpair coverage???

Answer 40

pays reasonable costs incurred by insured for necessary measures taken to protect covered property from further damage

Question 41

Property Removed coverage

Answer 41

Covers property against direct loss for all perils while being removed from described location because the property at the described lcoation is endagnered by insured peril

Question 42

Trees, shrubs and other plants coverage covers?

Answer 42

Provides insurance at a limit of up to 5% of Coverage A limit with a max of $500 for any one tree, shrub, or plant

Question 43

When is damage to trees, shrubs, plants or lawns NOT COVERED?

Answer 43

wind, hail, weight of snow; ice or sleet; or loss by theft

Question 44

Pay for fire department charges??

Answer 44

Under each of the dwelling forms, insurer will pay up to $500 for fire department charges incurred when a fire department other than the one in jurisdiction in which described location is situated

Question 45

Coverage for peril of collapse

Answer 45

only provided under the DP-2 and DP-3 forms. Coverage is provided for DIRECT PHYSICAL LOSS to covered property involving collapse of a buldling or any part of a buildling

Question 46

Ordinance or law???

Answer 46

ordinance or law is exclusded and is the increased costs due to enforcement of any ordinance or law regulating use, construction, demolition, remodelig, renovation or repair of property

Question 47

Is earth movement included?

Answer 47

no!! its excuded!! including land shock waves or tremors before, during or after a volcanic eruption; same with MUD and earth sinking

Question 48

What about water damage i dwelling policy?

Answer 48

Water damage is EXCLUDED and included flood, surface water waves, tidal water, overflow that backs up through sewers or drains incluidng water that exerts pressure on or seeps or leaks thorugh a building, sidewalk, driveway ,foundation, swimming pool or other structure

Question 49

What about power failure coverage in dwelling policy?

Answer 49

excluded OFF the desired location, included ON the described location

Question 50

Neglect and dwelling policy??

Answer 50

Neglect is excluded and is defined as insured’s neglect to use all reasonable means to save and preserve property at and after the time of a loss

Question 51

war, nuclear hazard and intentional loss included?

Answer 51

NOOOOOOOO excluded under all of the DP policies

Question 52

What is the Automatic Increase in insurance endorsement used for??

Answer 52

Used to provide at the annual renewal date of the policy, an automatic increase in the Coverage A and B limits of insurance to help offset inflation

Question 53

Broad theft coverage endorsement???

Answer 53

Provides insurance for perils of theft, attempted theft, and vandalism or malicious mischief that results from theft or attempted theft. MAY ONLY BE ADDED to policies insuring owner occupied dwellings

Question 54

What does the Dwelling under COnstruction endorsement provide?

Answer 54

the insured an average amount of insurance for Coverage A during the course of a dwelling’s construction

Question 55

What does the Personal Liability endorsement provide coverage for?

Answer 55

personal liability and medical payments to others and may be added to any of the dwelling forms of coverage