chapter 5 Anatomy of a Property Policy: Homeowners Forms Flashcards
An Exception is:
a. A favor from an underwrite
b. A case where a rule doesn’t apply
c. A modifier of an exclusion
d. A qualifier
A case where a rule doesn’t apply
Loss due to birds, vermin, raccoon, rodents, or insects is excluded except for:
a. damage to electrical system
b. damage to roof
c. damage to contents
d. damage to building glass
d. damage to building glass
The first steps to reading a policy is:
a. review the perils
b. review the definitions
c. review the exclusions
d. review the extensions
b. review the definitions
The insured has the option of what percentage of the limit for the dwelling to be applied to building fixtures and fittings temporarily removed for repair or seasonal storage.
a. 0%
b. 5%
c.25%
d.10%
d.10%
Which of the following causes of loss is excluded because it isn’t considered insurable
a. water
b. earthquake
c. insurrection
d. tornado
c. insurrection
For personal property losses, which of the following is an alternative basis of settlement specified by the homeowner’s forms?
a. The insurer will pay the cost of reproduction of electronic media from duplicates or from originals of the previous generation of the media.
b. The insurer will settle a loss of fine art and paintings at replacement cost.
c. The insurer will settle a loss of memorabilia at replacement cost.
d. For electronic media, the insurer will pay for the cost of gathering or assembling information or data for reproduction.
a. The insurer will pay the cost of reproduction of electronic media from duplicates or from originals of the previous generation of the media.
For which of the following losses is the insured required to provide notice to authorities?
a. All losses
b. Fire losses
c. Losses caused by a malicious act
d. All losses that are made under the comprehensive homeowner’s form
c. Losses caused by a malicious act
Most often, the policy language comes from the insurer and so will be interpreted in favour of the insured if terms are unclear or their meaning is uncertain. What is this legal doctrine called?
a. Uberrimae fidei
b. Contra proferentem
c. Ab initio
d. Caveat emptor
b. Contra proferentem
Outdoor trees, plants, and shrubs are optional coverages under which of the following types of policies?
a. Basic
b. Broad
c. Comprehensive
d. Basic, broad, and comprehensive
d. Basic, broad, and comprehensive
The extension of credit or debit cards, forgery and counterfeit money offers some protection against such loss, subject to which of the following limitations?
a. The coverage applies to cards issued to or registered in the name of the insured or the insured’s spouse.
b. The insured must have complied with all the conditions of the card agreement.
c. There is coverage if the card is used by a household member or any person entrusted with the card.
d. There is coverage for the insured’s liability arising from cards issued to the insured’s employer or to the insured’s business, unless they are in the insured’s name and the insured is personally responsible for all indebtedness under such cards.
b. The insured must have complied with all the conditions of the card agreement.
When does the lock replacement coverage apply?
a. When locks are damaged
b. If locks are replaced after a theft loss
c. Pays for lock replacement if keys are stolen
d. Only if the lock replacement claim is below $100
c. Pays for lock replacement if keys are stolen
Which clause requires the insured to submit to examination under oath, produce relevant documents, and allow the insurer to make copies of them?
a. Indemnity
b. Duty after loss
c. Deductible
d. Subrogation
b. Duty after loss
Which of the following persons would be included in the definition of an insured?
a. Insured’s mother, who is visiting from out of town.
b. Insured’s father, who lives with the insured.
c. An unrelated boarder who lives in the insured’s dwelling.
d. Insured’s boyfriend, with whom she has had a relationship for two months.
b. Insured’s father, who lives with the insured.
Which of the following provisions transfers the insured’s right of recovery against other to the insurer and entitles the insurer to sue in the insured’s name when the insurer has made payment or assumed liability?
a. Indemnity
b. Duty after loss
c. Reinstatement
d. Subrogation
d. Subrogation
Which of the following terms applies to a building with no people in it but to which people intend to return?
a. Occupancy
b. Absence
c. Vacancy
d. Unoccupancy
d. Unoccupancy
