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IA&B PC Insurance > Chapter 4: Dwelling ('14) Policy Concepts > Flashcards

Chapter 4: Dwelling ('14) Policy Concepts Flashcards

1
Q

3 Dwelling Forms

A

Basic DP 00 01
Broad DP 00 02
Special DP 00 03

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2
Q

Dwelling Eligibility

A

Owner/tenant occupied
Primarily residential
Incidental Business occupancies (studio, offices)
Mobile Homes
in course of construction
townhouses and rowhouses
no farms

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3
Q

DP-1 Basic Form

A

least amount of coverages and ACV; fire, lightening, explosions, WHARVVES (extended coverage)

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4
Q

Extended Additional Coverage (EC) Perils- WHARVVES

A

Windstorm
Hail
Aircraft
Riot/Civil Commotion
Vehicle Damage
Vandalism & Malicious Mischief *additional peril for additional premium
Explosion
Smoke

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5
Q

DP- 2 Broad Form

A

coverage on named peril basis at RC basis
Contains: Trees/shrubs/plants, collapse, glass, ordinance or law, weight of ice/snow, freezing

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6
Q

DP- 3 Special Form

A

most complete coverage; open perils approach; RC basis

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7
Q

COV A-E

A

A- Dwelling
B- Other Structure
C- Personal Property
D- Fair Rental Value
E- Additional Living Expense

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8
Q

Open perils

A

coverage unless excluded

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9
Q

DP -1 Basic: Coverage A-C (dwelling/other structure/personal property)
*named perils

A

Fire/lightning
Internal/explosion
Windstorm/hail
Riot/Civil commotion
Aircraft
Vehicles
Smoke
Volcanic Eruption

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10
Q

DP-2 Broad: Coverage A-C
*broad named perils

A

Fire/Lightning
Internal/explosion
Windstorm/hail
Riot/Civil commotion
Aircraft
Vehicles
Smoke
Volcanic Eruption
Vandalism
Damage by burgler
Falling objects
Weight of ice/snow
Accidental discharge of water/steam
Heating system/AC- cracking or burning
Freezing (limited)
Power Surge

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11
Q

DP- 3 Special: perils

A

Coverage A-B: open perils
Coverage C: broad named perils

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12
Q

Other Coverages

A

Other structures
Debris removal
Improvements, Alterations, Additions
World-Wide Coverage (only for COV C)
Rental Value & Additional Living Expense
Reasonable Repairs
Property Removed
Fire Dept. Service Charge
Collapse
Glass or Safety Glazing Material
Ordinance and Law

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13
Q

Broad and Special forms provide coverage for trees, shrubs, plants and lawns for what limited perils?

A

Fire
Lightning
Aircraft
Vehicles
Vandalism and Malicious Mischief
Explosion
Riot/Civil Commotion
*not including wind/heavy ice
*pays $500 limit for any one

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14
Q

General Exclusions

A

Ordinance or Law
Earth Movement
Water Damage
Off Premises Power Failure
Neglect
War Exclusions
Nuclear Hazard
Intentional Loss
Governmental Action
Concurrent Causation Exclusions in DP-3

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14
Q

Broad and Special forms provide coverage for building collapsing for what named perils?

A

perils insured against in COV C- Personal Property
Hidden decay
Hidden insect or vermin damage
Weight of contents, equipment, animals or people
Weight of rain collecting on roof
Use of defective material or methods in construction, remodeling or renovation if collapse occurs during such activity

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15
Q

3 Causes of Loss Excluded

A

Weather Conditions
Acts or Decisions
Faulty, Inadequate or Defective

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16
Q

Concurrent Causation- Exclusion in DP-3

A

Two causes of loss happen at the same time and result in a loss to covered property

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17
Q

Ordinance or Law- Exclusion

A

limited protection (10%) for costs resulting from the enforcement of building or zoning laws

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18
Q

Earth Movement- Exclusions

A

earthquake, land shock wave or tremor, landslide, mudflow, subsidence or sinkhole whether caused by an act of nature or otherwise

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19
Q

Water Damage- Exclusion

A

flood, surface water, waves, tides, tidal water, overflow of any body of water or spray from. Whether driven by wind, including storm surge
* damage from water which leaks from interior water systems is covered

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20
Q

Off Premise Power Failure- Exclusion

A

loss of power or other utility service which takes place off the Described Location

21
Q

Neglect- Exclusion

A

failure to use all reasonable steps to save and preserve property at and after the time of loss

22
Q

War Exclusion

A

damage from declared/undeclared war, civil war, rebellion, revolution, warlike act by military or destruction or seizure or use of property for military purposes

23
Q

Nuclear Hazard- Exclusion

A

nuclear reaction, radiation, or radioactive contamination of any consequence

24
Q

Intentional Loss- Exclusion

A

loss arising out of any act that is committed with the intent to cause the loss (arson)

25
Q

Governmental Action- Exclusion

A

destruction, confiscation, or seizure of property by order of a governmental authority

26
Q

Weather Conditions- Exclusion

A

losses in which weather conditions contribute in any way to another cause or event that is already excluded by the policy

27
Q

Acts or Decisions- Exclusions

A

acts or decisions or the failure, by any person may have contributed to the loss

28
Q

Faulty, Inadequate or Defective- Exclusion

A

planning, zoning, development, construction, maintenance or materials

29
Q

Conditions

A

rights and duties required of both insured and insurance company to carry out the policy provisions

30
Q

Policy Period- Condition

A

pay only for losses which occur during the policy period stated in dec pages

31
Q

Concealment or Fraud- Condition

A

entire policy is void if any insured intentionally concealed or misrepresented any material fact or engaged in fraudulent conduct

32
Q

Duties After loss- Condition

A

give prompt notice to insurance company and protect property from further damage

33
Q

Loss Settlement- Condition

A

what basis the policy will pay claims (ACV or RC)

34
Q

DP-2 and DP-3 pay ACV for what types of property

A

personal, awning, carpeting, household appliances, outdoor antennas and outdoor equipment, structures that are not buildings (fence)

35
Q

Loss of building under COV A&B can be paid RC w/o deduction/depreciation if…

A

the amount of insurance on the damaged building is at least 80% of the full replacement value of the building at the time of loss
*full replacement payment cannot exceed the policy limits
*did/should

36
Q

Loss to a pair/set- Condition

A

repair or replace, to get insured in same position prior to loss
pay difference between ACV of property before the loss and after the loss

37
Q

Appraisal- Condition

A

resolve dispute when insured and insurance company cannot agree on the amount to be paid on a covered loss.

38
Q

Other Insurance and Service Agreement- Condition

A

other insurance applies if property is covered by more than one policy and the insurance is similar, the DP will pay covered claims in proportion to its limits
*Pro Rata basis
*if also covered by service agreement, then coverage under this policy will be excess over amounts payable by the service agreement

39
Q

Our Option- Condition

A

if insurance company gives insured notice within 15 days from the day it received the insured’s proof of loss, it’s company’s option to repair or replace any damaged property with like property

40
Q

Loss Payment- Condition

A

losses will be adjusted with the named insured and payments will be made to named insured unless the policy dec pages shows another party entity name
*loss is payable within 60 days from the receipt of proof of loss and
1. an agreement was made
2. final judgement has been rendered
3. appraisal award has been filed

41
Q

Mortgage Clause- Condition

A

if company denies a claim to insured, the denial does not apply to the mortgagee, mortgagee may make a claim by submitting signed proof of loss within 60 days

42
Q

DP 02 03 (owner occupied) or no COV A&B- Cancellation

A

Less than 60 days in effect- for any reason
More than 60 days in effect- non payment of premium, material misrepresentation, substantial change in risk, other reason approved by the Commissioner
*insurer must give 30 days notice of cancellation

43
Q

DP 02 04 (non owner occupied)- Cancellation

A

Less than 60 days in effect- for any reason (insurer 15 days notice)
More than 60 days in effect- non payment of premium, material misrepresentation (15 days notice)
More than 60 days in effect- substantial change in risk, loss of reinsurance, failure to comply, other reasons (60 days notice by insurer)

44
Q

Nonrenewal for DP 02 03/04

A

03- notice 30 days prior to expiration date
04- notice 60 days prior to expiration date

45
Q

Automatic Increase in Insurance (DP 04 11)- Endorsement

A

policy increases the limits of COV A&B automatically for inflation

46
Q

Dwelling Under Construction (DP- 1143)- Endorsement

A

property protection for a dwelling structure while under construction
actual amount of insurance on any date is a % of the provisional amount
actual dwelling value on that date/dwelling value at the date of completion

47
Q

Broad Theft Coverage (DP 04 72)- Endorsement

A

same coverage as Homeowners, except no coverage for theft that occurs off premises

48
Q

Minimum coverage limits for COV L&M are…

A

L- 100,000
M- 1,000

49
Q

Personal Liability Supplement provides what two coverages

A

COV L&M

50
Q

Coverage L- Personal Liability

A

legal defense and pays up to the limit of liability for damages for which the insured is legally responsible
*defense costs are paid in addition to the policy’s liability limit

51
Q

Coverage M- Medical Payments to Others

A

pays medical payments to other regardless of fault up to the medical payments limit

IA&B PC Insurance (21 decks)

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