Chapter 5 Homeowners Flashcards

Question

All of the following special limits of Coverage C are correct, except:

Answer 1

$2,500 for business property away from premises

Answer 2

Property not covered under Coverage C includes: Property specifically described and insured elsewhere, such as on another policy or by endorsement to the homeowners policy Animals, birds, or fish Motor vehicles, including equipment, parts, and electronic equipment and accessories that can only be operated by the motor vehicle. An exception exists (meaning coverage is provided) for motor vehicles not required to be registered for use on public roads, used solely to service an insured’s residence, or designed to assist the handicapped Aircraft, including its parts, except model or hobby aircraft is covered if it’s not used or designed to carry people or cargo Hovercraft, including its parts Property of roomers, boarders, and other tenants—except those related to an insured Property in an apartment regularly rented, or held for rental, to others by an insured—except for property covered under the additional coverage, Landlord’s Furnishings Property rented or held for rental to others off the residence premises Business data, credit cards, and electronic fund transfer cards—including data stored in books of account, on paper records, or on computers Water or steam This insurance limit is 50% of the Coverage A limit of liability, does not reduce the Coverage A limit of liability, and may be increased by endorsement.

Answer 3

50% | The Coverage C limit is 50% of Coverage A in the standard Homeowner policy, and may be increased.

Answer 4

Three types of coverage are provided under Coverage D and all are for indirect, or consequential, loss. The limit of insurance appearing on the declarations for Coverage D is the total limit payable for all three types of coverage provided. For example, a wildfire burns near the insured’s home. If direct damage from the wildfire occurs to the residence premises, Additional Living Expense and Fair Rental Value coverages are triggered. If direct damage from wildfire occurs to the named insured’s neighbors, and a civil authority evacuates the named insured, Civil Authority Prohibits Use coverage is triggered. Additional Living Expense If a property loss covered by Section I of the policy makes the residence premises unfit to live in, the policy pays for any necessary increase in living expenses incurred by the named insured to maintain the household’s normal standard of living. Payment is made for the shortest time necessary to repair or replace the damage. If the insured must relocate permanently, payment will be made for the shortest time it takes the insured to settle at the new location. Fair Rental Value If a property loss covered by Section I of the policy makes that part of the residence premises rented to others unfit to live in, the policy pays for the fair rental value of such premises—less any continuing expenses—while it’s unfit to live in. Payment is for the shortest time required to repair or replace the rented portion of the premises. Civil Authority Prohibits Use If a civil authority prohibits the named insured from using the residence premises as a result of direct damage to neighboring premises by a peril insured against under the homeowners policy, the policy pays losses under Additional Living Expense and/or Fair Rental Value for no more than two weeks.

Answer 5

Loss and expenses due to the cancellation of a lease or agreement are NOT covered. Limits of Coverage – The automatic limits of insurance for Coverage D vary by the homeowners form of coverage: 30% of Coverage A for forms HO–2, HO–3, and HO–5 30% of Coverage C for form HO–4 50% of Coverage C for form HO–6 10% of Coverage A for form HO–8 Click here for a printable PDF of HO Coverages.

Answer 6

30% of Coverage A HO–2, HO–3, and HO–5 10% of Coverage A HO–8 50% of Coverage C HO–6 30% of Coverage C HO–4

Answer 7

Coverage A Installed carpeting Fireplace Tile floors Coverage B Fence Swimming Pool Detached garage Coverage C Home computer Money Furniture

Answer 8

Debris Removal The policy will pay the named insured’s reasonable expenses for the removal of debris of covered property if a covered loss occurs. Payment is included in the limit of insurance for covered property that is damaged. If debris removal expenses and expenses for damaged property exceed the applicable limit of insurance, this coverage will provide additional insurance equal to 5% of the limit available for such expense. For example, the insured’s shed burns to the ground. The Coverage B limit of liability is $10,000. This coverage will pay a total of $10,000 plus $500 ($10,000 times 5%) for the replacement value of the shed plus debris removal expenses. A limit of $1,000 applies for reasonable expenses to remove from the residence premises debris of the insured’s trees felled by windstorm, hail, or the weight of ice, snow, or sleet. Reasonable Repairs When the insured’s property has been damaged by a covered peril, this coverage pays the reasonable costs incurred by the named insured to take necessary measures to protect covered property damaged by a covered peril against further damage. For example, a tree falls on the dwelling’s roof. The insured’s expenses to place a tarp over the hole in the roof would be covered. This coverage does not increase the limit of insurance that applies to the covered property. Trees, Shrubs, and Plants Coverage is provided for trees, shrubs, plants, or lawns on the residence premises for the following perils: fire or lightning, explosion, riot or civil commotion, aircraft, vehicles not owned or operated by a resident of the residence premises, vandalism or malicious mischief, and theft. Coverage is NOT provided for any other peril, including windstorm or hail. The limit of insurance is up to 5% of the Coverage A limit of liability and applies to all trees, shrubs, plants, or lawns. The most paid for loss to any one tree, shrub, or plant is $500. This limit is additional insurance. No coverage is provided for property grown for “business” purposes.

Answer 9

This coverage pays up to $500 for the named insured’s contractual liability to pay fire department charges incurred by a fire department that is called to save or protect covered property by a peril insured against. Covered charges must be incurred by a fire department other than that of the jurisdiction in which the covered property is located. For example, a neighboring fire department is called to assist the fire department of the jurisdiction in which the insured property is located. This coverage is additional insurance, and the policy deductible does not apply.

Answer 10

Coverage is provided for loss to covered property by any cause while being removed from a premises endangered by a peril insured against. Coverage applies for no more than 30 days while removed. For example, if a wildfire threatens the insured’s home and property is removed, loss to the removed property that is caused by flood or earthquake would be covered during the first 30 days the property is removed. However, if flood threatened the insured’s home, coverage wouldn’t apply because the endangering peril is not a peril insured against.

Answer 11

Coverage up to $500 is provided for the insured’s legal responsibility because of theft or unauthorized use of credit cards, electronic fund transfer cards or access devices issued to an insured. Loss to an insured caused by forgery, alteration of a check or negotiable instrument, or counterfeit money is also covered. Exclusions exist for use of a covered card or device by a resident of the named insured’s household, by a person entrusted with a card or access device, the insured’s failure to comply with credit card requirements, business use of a card, or the insured’s dishonesty. This coverage also includes defense.

Answer 12

Coverage up to $1,000 is provided for the named insured’s share of loss assessment charged during the policy period by a corporation or association of property owners. The assessment must be made because of direct loss to property owned collectively by all members AND that was caused by a Peril Insured Against under this policy. This coverage is additional insurance.

Answer 13

Coverage is provided for the abrupt falling down or caving in of a building, or a portion of a building, if the building cannot be occupied for its intended purpose after the collapse. Direct physical loss from collapse must be caused by a Coverage C named peril, hidden decay, hidden insect or vermin damage, weight of contents, equipment, animals, people, the weight of rain collecting on a roof, or the use of defective materials or construction methods. The policy does not cover collapse of awnings, fences, patios, swimming pools, underground pipes, cesspools, etc., unless damage is the direct result of the collapse. This coverage does not increase the limit of insurance that applies to the damaged property.

Answer 14

Coverage is provided for: The breakage of glass or safety glazing material that is part of a covered building, storm door, or storm window, including loss caused by earth movement. Direct physical loss to covered property caused solely by the pieces, fragments, or splinters of broken glass or safety glazing material. NO coverage is provided for loss occurring on the residence premises if the dwelling was vacant for more than 60 consecutive days before the loss, except coverage is provided for loss caused by earthquake. This coverage does not increase the limit of insurance that applies to the damaged property.

Answer 15

Up to $2,500 coverage is provided for appliances, carpeting, and household furnishings owned by the named insured and located in each apartment on the residence premises that is rented to others. Coverage is provided for the 15 named perils (the Coverage C perils, with the exception of theft). This coverage does not increase the limit of insurance applying to the damaged property.

Answer 16

The insured may use up to 10% of the Coverage A limit of insurance for increased costs the insured incurs due to the enforcement of any ordinance or law that requires or regulates: Construction, demolition, remodeling, renovation, or repair of that part of a covered building damaged by an insured peril. The demolition or reconstruction of the undamaged part of a covered building, when that building must be totally demolished because of damage by an insured peril to another part of that covered building. The remodeling, removal, or replacement of the portion of the undamaged part of a covered building to complete the remodeling, repair, or replacement to that part of the covered building damaged by an insured peril. This coverage is additional insurance.

Answer 17

The policy will pay up to $5,000 for grave markers, on or away from the residence premises, for loss caused by a peril insured under Coverage C. This coverage does not increase the limits of insurance that apply to the damaged, covered property.

Answer 18

2,500 This endorsement provides up to $2,500 coverage for appliances, carpeting and household furnishings in a rental apartment located in the residence premises.

Answer 19

Ordinance or Law Losses resulting from the enforcement of an ordinance or law regulating the construction, repair, remodeling, renovation or demolition of a building are excluded except what is provided in the additional coverage, Ordinance or Law. Earth Movement Losses resulting from: earthquake, including land shock waves or tremors before and after volcanic eruptions, landslides, mudslides, mudflow, subsidence, or sinkhole, and any earth sinking, rising, or shifting. Direct loss by fire or explosion that ensues is covered. Loss by theft resulting from earth movement is also covered. Water Damage Water damage means flood, surface water, tidal water, overflow of a body of water, water or water-borne material that backs up through sewers or drains or that overflows from a sump pump, and water that exerts pressure on or seeps or leaks through a building, foundation, swimming pool, or other structure. Direct loss by fire, explosion, or theft resulting from water damage is covered. Water damage is excluded whether caused by human, animal, or natural forces.

Answer 20

If the failure of power or utility services takes place off the residence premises, this exclusion applies. However, if the failure of power or utility services takes place on the residence premises and is caused by a Peril Insured Against, it doesn’t apply.

Answer 21

There is no coverage for losses if the insured fails to use all reasonable means to save and preserve covered property at and after the time of a loss.

Answer 22

War includes the following, including any consequences of: undeclared war, civil war, insurrection, rebellion or revolution, warlike act by a military force or personnel, destruction, seizure or use for a military purpose. Discharge of a nuclear weapon is deemed warlike even if it occurs accidentally.

Answer 23

Damage is excluded by any nuclear reaction, radiation or radioactive contamination, or a consequence of any of these.

Answer 24

No coverage applies to any loss that arises out of any act an insured commits or conspires to commit with the intent to cause loss. In the event of intentional loss, no insured is entitled to coverage, including innocent insureds (those who did not cause the loss, but are covered on the same policy as the person who caused the loss).

Answer 25

The destruction, confiscation, or seizure of covered property by order of any governmental or public authority is excluded. The exclusion doesn’t apply to such acts taken at the time of a fire to prevent its spread, if the fire loss would be covered under the policy.

Answer 26

Governmental action Governmental action is the destruction, confiscation, or seizure of covered property by order of the government and is excluded in the Homeowners policy.

Answer 27

Additional Coverages Loss to covered property by any cause while being removed from a premises endangered by a peril insured against Reasonable costs incurred by the named insured to protect covered property damaged by a covered peril against further damage Reasonable expenses for the removal of debris of covered property if a covered loss occurs Coverage for the abrupt falling down or caving in of a building that cannot be occupied for its intended purpose after the collapse Exclusions Water damage resulting from a flood, surface water, overflow of a body of water, or sewer back-up Power failure taking place off the residence premises Losses resulting from earthquake, landslides, or mudslides Coverage for a loss that arises out of any act committed by the insured with the intent to cause a loss

Answer 28

Depending upon the insurer, insurance for mobile homes may be insured on a homeowners policy by adding a Mobile Home endorsement. If the insurer doesn’t allow the addition of such an endorsement to its homeowners policy, a separate Mobile Homeowners policy must be written. Under ISO (Insurance Services Office) rules, an owner occupied mobile home may be covered under an HO–2 or HO–3 by endorsement. The endorsement amends the definition of Coverage A (Dwelling) to include a mobile home. Tenants of a mobile home may insure their personal property under an HO–4 if the insurer’s underwriting guidelines permit.

Answer 29

If the Coverage B limit of insurance is inadequate to insure all other structures on the residence premises (10% of Coverage A), this endorsement allows the insured to purchase increased limits for other structures listed in the endorsement. The increased limits generate an additional premium charge.

Answer 30

This endorsement allows the insured to buy back some coverage that is excluded under the Water Damage exclusion. It provides up to $5,000 of coverage for direct physical loss to property insured under Section I (Coverages A, B, and C) caused by water or waterborne material that: Backs up through sewers or drains, or Overflows from a sump, sump pump, or related equipment. Coverage is provided even if the sump overflow is caused by equipment breakdown. A special deductible of $250 applies and replaces any other deductible that may otherwise apply. Coverage doesn’t apply if damage is caused by the negligence of an insured.

Answer 31

5,000 This endorsement provides up to $5,000 of coverage for property directly damaged by water that backs up through sewers or drains or overflows from a sump pump.

Answer 32

This endorsement changes the valuation method for most property insured under Coverage C from actual cash value (ACV) to replacement cost. It also applies to awnings, outdoor antennas and equipment, carpeting, and household appliances. If the following classes of property are separately described and specifically insured in this policy and NOT subject to agreed value loss settlement, the endorsement also applies to jewelry, furs and fur garments, cameras and related equipment, musical instruments and related equipment, silverware, goldware, pewterware, and golfer’s equipment. Other classes of property separately described and specifically insured are NOT subject to this endorsement. Property NOT eligible for coverage under this endorsement—and that is subject to actual cash value loss settlement—includes antiques, fine arts, paintings and similar articles of rarity or antiquity that cannot be replaced, memorabilia, souvenirs, collectors’ items, articles whose ages and histories contribute to their value, articles not maintained in good or workable condition, and articles that are outdated or obsolete and are stored or not being used. This endorsement only changes loss valuation—it doesn’t change other policy provisions, including perils insured against or exclusions.

Answer 33

This endorsement is used to increase limits of liability for certain categories of personal property and to broaden the perils insured against that apply to that property. Coverage is provided on an open-perils basis and contains very few exclusions; including wear and tear, insects or vermin, war, and nuclear hazard. Some additional exclusions and restrictions apply for fine arts, postage stamps, coins, and the breakage of art glass windows, glassware, statuary, marble, bric-a-brac, porcelains, and similar fragile articles. This endorsement is also referred to as a Personal Article Floater. Newly acquired property of a class already insured on the endorsement is automatically covered. The insurer must be notified within 30 days (90 days for fine arts) if new property is acquired. Scheduled property is insured worldwide and the Section I deductible does not apply to this endorsement.

Answer 34

Coverage for a loss caused by earthquake, including land shock waves or tremors before, during, or after a volcanic eruption, is provided to property insured under Coverage A (Dwelling), B (Other Structures), and C (Personal Property). A single earthquake is defined as 1 or more earthquake shocks that occur within a 72-hour period. The coverage does not cover loss resulting from flood of any nature, or the cost of filling land. A deductible that is a percentage of Coverage A (Dwelling) or Coverage C (Personal Property), whichever is greater, is included.

Answer 35

This endorsement provides a basic property limit option of $10,000 on an annual aggregate basis during the policy period for: Loss caused by fungi, wet or dry rot, or bacteria. Cost of: Testing the air or property to confirm the existence of fungi, wet or dry rot, or bacteria. Removal of fungi, wet or dry rot, or bacteria. Tearing out and replacing any part of the building or other covered property to gain access to fungi, wet or dry rot, or bacteria. Insurers also can offer higher optional coverage limits of $25,000 and $50,000.

Answer 36

With respect to Section I, Coverage B (Other Structures), this endorsement covers a structure of the residence premises, specifically described, for direct physical loss by an insured peril for a specified limit of insurance when used to conduct a business. The endorsement also allows the Coverage C (Personal Property) special limit of $2,500 to apply to the described business.

Answer 37

This endorsement will pay up to $15,000 for expenses resulting from an instance of identity fraud discovered during the policy period. The endorsement does not cover losses arising out of business activity. It carries a $500 deductible and the insured must notify the insurer within 60 days of the loss.

Answer 38

``` Additional Coverages Grave Markers Landlord's Furnishings Loss Assessment Credit Cards, Electronic Fund Transfer Card or Access Device, Forgery, and Counterfeit Money Property Removed Reasonable Repairs ``` Endorsements Water Back-Up and Sump Discharge or Overflow Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Scheduled Personal Property Earthquake Identity Theft Expense Mobile Home Insurance

Answer 39

The language contained in Section II – Liability Coverages is identical in each of the homeowners forms. It provides the same coverages contained in a standalone Comprehensive Personal Liability (CPL) policy. Section II coverages are not subject to a deductible.

Answer 40

Insurance is provided for claims made and suits brought against an insured because of bodily injury or property damage caused by an occurrence for which the insurance applies. The policy pays up to the limit of liability for the damages for which an insured is legally liable, including prejudgment interest awarded against an insured. The policy provides a defense, at the insurer’s expense, even if the suit is groundless, false, or fraudulent. The insurer may investigate and settle any claim or suit it decides is appropriate. The duty to defend ends when the policy limits have been exhausted by payment of a judgment or settlement. Payments for defense costs are made in addition to the limit of liability appearing on the declarations.

Answer 41

The policy will pay necessary medical expenses that are incurred or medically ascertained within 3 years from the date of an accident causing bodily injury. Legal liability, negligence, and fault do not trigger this coverage. Medical payments to others is a goodwill coverage and designed to discourage the submission of liability claims. Medical expenses are the reasonable charges for medical, surgical, X-ray, dental, ambulance, hospital, professional nursing, prosthetic devices, and funeral services. Coverage does not apply to the insured or regular residents of the insured’s household (except residence employees). However, coverage does apply to: A person on the insured location with the permission of an insured. A person off the insured location if the bodily injury: Arises out of a condition on the insured location or the immediate surroundings. Is caused by the activities of an insured. Is caused by a residence employee in the course of employment by the insured. Is caused by an animal owned by or in the care of an insured.

Answer 42

An injury to the insured while mowing the lawn | Coverage under this section does not apply to the insured and regular residents in the insured dwelling.

Answer 43

``` Claim Expenses (Supplementary Payments) Includes the insurer’s expenses for defending a claim, along with reasonable expenses incurred by an insured at the insurer’s request. Also covered as claim expenses are premiums on bonds required in a suit defended by the insurer, the insured’s actual loss of earnings up to $250 a day for assistance in the investigation or defense of a claim or suit, and post-judgment interest. ``` First Aid Expenses Includes expenses incurred by an insured for rendering first aid to others who sustain bodily injury covered under the policy. No coverage is provided for first aid to an insured.

Answer 44

Pays up to $1,000, at replacement cost, for property damage to property of others caused by an insured. Payment is made regardless of negligence. For example, damage caused by an insured to a borrowed lawn mower. Coverage does not apply to property damage: Covered under Section I of the policy. Caused intentionally by an insured who is 13 years of age or older. To any property owned by an insured. To property owned by or rented to a tenant of an insured or a resident of the named insured’s household. Arising out of a business engaged in by an insured; acts or omissions in connection with premises owned, rented, or controlled by an insured that is not the insured location; the ownership, maintenance, occupancy, operation, use, loading or unloading of aircraft, hovercraft, watercraft, or motor vehicles.

Answer 45

Provides up to $1,000 of coverage for the insured’s share of loss assessments charged by a corporation or association of property owners during the policy period. The loss assessment must be the result of bodily injury or property damage not otherwise excluded by the policy or liability for an elected director, officer, or trustee who serves on the board of the association or corporation without being compensated.

Answer 46

$1,000. Up to $1,000 will be paid under this coverage for property damage by the insured to another person’s property, regardless of fault.

Answer 47

Section I Loss to an insured caused by forgery or alteration of a check A deductible applies to all losses unless otherwise specified Fair rental value if property loss makes part of a residence that is rented to others unfit to live in Additional living expenses incurred by a named insured due to a loss by a covered peril Section II Damage to property of others caused by an insured Expenses for defending a claim Coverages are not subject to a deductible Bodily injury claims made against the insured who is legally liable

Answer 48

1. Exclusions that apply to Section II – Coverages E and F and the Additional Coverages 2. Exclusions that only apply to Coverage E – Personal Liability and Coverage F – Medical Payments to Others 3. Exclusions that only apply to Coverage E – Personal Liability 4. Exclusions that apply only to Coverage F – Medical Payments to Others

Answer 49

Motor Vehicle Liability – The Motor Vehicle Liability exclusion applies to all coverages in Section II. No coverage is provided for “motor vehicle” liability if at the time of an occurrence, the “motor vehicle” involved in the loss was registered for use on public roads or wasn’t registered but was required to be registered. In addition, no coverage is provided for vehicles that are being operated in or practicing for racing, rented to others, used to carry people or cargo for a fee, or used for any business purpose. Exceptions to the exclusion, meaning coverage is given back, exist for the following: Vehicles in dead storage on an insured location, meaning they are physically unable to be driven, because their batteries have been removed and they’re up on blocks. Vehicles used solely to service an insured’s residence. Vehicles designed to assist the handicapped, so long as the vehicle is being used to assist a handicapped person, or it is parked on an insured location. A motorized golf cart used on a golfing facility for purposes approved by the facility or within a private residential community and used as approved by the community. Vehicles designed for recreational use off public roads IF they are not owned by an insured OR are owned by an insured and used on an insured location.

Answer 50

– No coverage is provided for “aircraft liability” as defined in the policy.

Answer 51

No coverage is provided for “hovercraft liability” as defined in the policy.

Answer 52

Vehicle used to assist the handicapped and parked in a public lot

Answer 53

Expected or intended injury is excluded and applies even if the insured intended a different outcome. For example, the insured intended to hit Bob, but hit Joan instead. An exception exists for the use of reasonable force to protect persons or property. Previous editions of the homeowners policy only gave back coverage for the protection of persons. Coverage is excluded for bodily injury or property damage arising out of, or in connection with, a business conducted from an insured location OR engaged in by any insured, regardless of where the occurrence takes place. The exclusion applies if the insured owns a business or is employed by a business; no distinction is made between the two. Coverage is excluded for bodily injury or property damage arising out of the rendering of or failure to render, professional services. No coverage is provided for bodily injury or property damage arising out of a premises owned, rented by, or rented to others by an insured if the premises isn’t an “insured location.” No coverage is provided for bodily injury or property damage arising from any type of war, warlike act, or destruction, seizure, or use for a military purpose—including accidental discharge of a nuclear weapon. Bodily injury or property damage arising out of the transmission of a communicable disease by an insured is excluded. Bodily injury and property damage arising out of sexual molestation, corporal punishment, or physical or mental abuse is excluded. Bodily injury or property damage arising out of the use, sale, manufacture, delivery, transfer, or possession of a controlled substance is excluded. An exception to the exclusion exists for the legitimate use of prescription drugs by a person following the orders of a licensed physician. Coverages E and F don’t apply to bodily injury sustained while using a watercraft that is: An inboard motorboat owned by an insured, except while in storage An inboard motorboat with more than 50 horsepower, rented by an insured An outboard motorboat with more than 25 horsepower, owned by an insured Sailing vessels 26 feet or more in length, owned or rented by an insured

Answer 54

For any loss assessment, except as provided under the Additional Coverage, Loss Assessment. Under any contract entered into by an insured. Exceptions exist if the contract is a written contract that relates directly to the ownership, maintenance, or use of an insured location or the liability of others is assumed by the named insured prior to an occurrence. Property damage to property owned by an insured. Property damage to property rented to, occupied by, used by, or in the care of an insured. This is the care, custody, or control exclusion and an exception exists for property damage caused by the perils of fire, smoke, or explosion. Keep in mind that the Additional Coverage, Damage to Property of Others, provides $1,000 of coverage on a replacement cost basis to minimize this exclusion. Bodily injury to anyone eligible to receive benefits from any workers’ compensation, occupational disease law, or non-occupational disability law. Bodily injury or property damage for which an insured is covered under any nuclear energy liability policy. Bodily injury to the named insured or any insured.

Answer 55

To a residence employee if the bodily injury occurs off an insured location AND NOT in the course of the residence employee’s employment by the insured. To any person who is eligible to receive benefits voluntarily provided or required by law under any workers’ compensation, occupational disease law, or non-occupational disability law. From any nuclear reaction, nuclear radiation, or radioactive contamination—regardless of how caused. To any person other than a residence employee of an insured who regularly resides on any part of the insured location. This includes roommates and tenants as well as any insured.

Answer 56

A per occurrence limit applies to losses covered under Coverage E – Personal Liability and a per person limit applies to losses covered under Coverage F – Medical Payments to Others.

Answer 57

Insurance applies separately to each insured; however, this condition doesn’t increase the limit of liability per any one occurrence.

Answer 58

The named insured or another insured is responsible for performing the following duties. The insurance company has no duty to provide coverage if the named insured’s failure to comply with the following duties is prejudicial to the insurance company. Give the following information in written notice to the insurer or its agent as soon as is practical: The policy number The identity of the named insured Reasonably available information about the time, place, and circumstances of the occurrence Names and addresses of any claimants and witnesses Cooperate with the insurer in the investigation, settlement, or defense of any claims Promptly forward any notice, demand, summons, or other process to the insurer At the insurer’s request, aid the insurer in making a settlement, pursuing subrogation attempts, taking the case to court, and procuring evidence With respect to Damage to Property of Others, submit to the insurer, within 60 days after a loss, a sworn statement of loss and show the damaged property No insured shall, except at his/her own expense, voluntarily make payment, assume obligation, or incur expense other than for first aid at the time of bodily injury

Answer 59

This condition applies to third party claimants who are pursuing coverage under the policy. The injured person, or someone acting on his or her behalf, must: Give the insurer written proof of the claim as soon as practical—and under oath, if required. Authorize the insurer to obtain copies of medical records and reports. Submit to a physical exam by a doctor of the insurer’s choice when and as often as the insurer reasonably requires.

Answer 60

This condition states that payment under Coverage F is not an admission of liability.

Answer 61

All parties must comply with policy provisions before any suit may be brought against the insurer. Also, no one has the right to enjoin the insurance company as a party to any action against an insured.

Answer 62

Bankruptcy or insolvency of an insured does not relieve the insurer of its obligations under the policy.

Answer 63

insurance is excess over any other collectible insurance, except insurance written specifically as excess insurance over this policy.

Answer 64

The policy only applies to bodily injury or property damage that occurs during the policy period.

Answer 65

The policy does not provide coverage to an insured who, whether before or after a loss, has intentionally concealed or misrepresented any material fact or circumstance, engaged in fraudulent conduct, or made false statements relating to this insurance.

Answer 66

Help the insurer in settling the claim

Answer 67

The endorsement extends Section I and II coverages to the home day care “business” described in the schedule provided it is conducted by an insured on the residence premises. The endorsement typically imposes a policy year aggregate limit for the sum of personal liability and medical payments to others losses. The limit corresponds to the Coverage E limit shown in the Declarations, with a per person per accident sublimit for day care-related medical expenses equal to Coverage F. The endorsement does not cover injury to any employee arising out of the “business,” as described.

Answer 68

The endorsement adds liability coverage for “personal injury,” which is defined to include the following offenses: False arrest, detention, or imprisonment. Malicious prosecution. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling, or premises that a person occupies, committed by or on behalf of its owner, landlord, or lessor. Oral or written publication of material that violates a person’s right of privacy, slanders or libels a person or organization, or disparages a person’s or organization’s goods, products, or services. Insurance provided by the endorsement does not apply to “personal injury” that is: Caused by or at the direction of an insured with the knowledge the act would violate another’s rights and inflict personal injury. Arising out of oral or written publication of material: With the knowledge of its falsity. That took place before the inception date of the policy. Arising out of a criminal act committed by, or at the direction of, an insured. Arising out of contractual liability assumed by an insured other than an indemnity agreement that relates directly to the ownership, maintenance, or use of the premises. An offense related directly or indirectly to the employment of an injured party by an insured. Arising out of or in connection with a business conducted from an insured location or engaged in by an insured. Arising out of civic or public activities performed by an insured for pay. Sustained by the named insured or an insured. Actual, alleged, or threatened: Discharge, dispersal, seepage, migration, etc., of pollution. Ingestion of, inhalation of, contact with, exposure to, existence of, or presence of any “fungi,” wet or dry rot, or bacteria.

Answer 69

The endorsement provides for both business property and liability coverages for a variety of home businesses. The business must be owned by the named insured, or by a partnership, joint venture, or organization comprised solely of the named insured and resident relatives. It also includes coverage for premises operations, advertising injury, and personal injury. However, there is no coverage for professional services.

Answer 70

The endorsement amends the liability exclusion pertaining to certain types of watercraft liability. The exclusion is deleted and replaced with a revised exclusion, which states that Coverage E and F don’t apply to “watercraft liability” if the involved watercraft is being: Operated in or practicing for any prearranged or organized race, speed contest, or competition. Sailing vessels and predicted log cruises are not excluded. Rented to others Used to carry people or cargo for a charge Used for any “business” purpose If the watercraft is a sailing vessel or one powered by an inboard or inboard-outdrive engine or motor, Coverages E and F don’t apply to bodily injury sustained by any employee in the course of employment. Such exclusion applies if the employee’s principal duties are in connection with the maintenance, operation, or use of a watercraft designated in the endorsement.

Answer 71

A 20-foot sail boat This endorsement covers sail boats with or without power, and property damage or bodily injury arising out of the ownership, maintenance, use, loading, or unloading of the described watercraft.

Answer 72

The endorsement covers the insured’s liability exposure in the event that a third party claims illness as a result of exposure to mold and the insured is deemed liable for the illness. The basic liability limit is currently $50,000 on an annual aggregate basis during the policy period for all fungi, wet or dry rot, or bacteria related damages. Insurers can also offer a higher optional liability coverage limit of $100,000.

Answer 73

The endorsement modifies the Section II exclusions of liability and medical payments in connection with business pursuits of the insured to allow the necessary and incidental use of the premises for the business described on the endorsement. The premises must be occupied principally as the insured’s residence; the business must be conducted by an insured; and there can be no other business conducted on the premises. The endorsement is commonly used for a studio, office, or private school type of occupancy. It does not cover bodily injury to any employee of the insured, except residence employees in the course of their employment.

Answer 74

The endorsement extends liability coverage for the insured’s involvement in a business that the insured does not own, have financial control over, or have a partnership interest in. The pursuit must be named in the endorsement, and is commonly added for those in the teaching, sales, and clerical professions.

Answer 75

Watercraft Liability The insured is concerned about any injuries that could occur taking people tubing on their boat. Permitted Incidental Occupancies The insured’s property is mainly used for residence, and they occasionally teach piano lessons out of their home. Business Pursuits A salesperson has several business products in their home. The salesperson does not have any financial responsibility in this company, but wants liability coverage for the sales products. Home Day Care An insured wants liability coverage for the children they watch with their at-home business. However, this would not cover any employees. Limited Fungi, Wet or Dry Rot, or Bacteria Coverage While visiting the insured’s home, the visitor gets sick due to the mold in the insured’s property. Personal Injury An insured is concerned about accidentally slandering someone. Home Business The insured owns a business they run out of their home. They want coverage for premises operations, advertising injury, and personal injury.

Answer 76

They are used to insure the personal property and personal liability of the insured, but do not include the structure itself

Answer 77

The HO-2 provides open perils coverage on the dwelling | The HO-2 covers the dwelling and contents against the Broad Form Perils.

Answer 78

Premises rented occasionally to the named insured for nonbusiness purposes A location rented occasionally to the named insured for nonbusiness purposes is an insured location.

Answer 79

Under Coverage F, payments apply to necessary medical expenses incurred within a maximum of 1 year Coverage F will pay for expenses incurred up to three years after the accident.

Answer 80

The HO-4 covers the dwelling against the Broad Form Perils | There is no coverage for the dwelling under an HO-4, only contents coverage.

Answer 81

Dune buggy used on a public beach An owned vehicle designed for recreational use off public roads must be used on the insured premises for coverage to apply.

Answer 82

Functional Replacement Value The loss valuation method for HO-8 is typically Actual Cash Value (ACV). However, if exact materials are not available, they may be replaced with materials that will perform the same function and have the same efficiency, even if they aren’t of like kind and quality.

Answer 83

Residence premises .The residence premises is either a 1, 2, 3, or 4 family dwelling in which the named insured resides. The residence premises also includes other structures and the grounds at that location, such as the 5 acres upon which the insured sits, including the barn, detached garage, and swimming pool.

Answer 84

Theft of furs and jewelry up to $1,500 The limit for loss by theft of jewelry and furs is $1,500. Money is covered up to $200, theft of firearms and related equipment is covered up to $2,500, and watercraft are covered up to $1,500.

Answer 85

The HO-2 pays for losses on an open perils basis | The HO-2 insures the dwelling and contents against the broad form perils.

Answer 86

0% | The most paid for a covered tree is $500 but coverage is not provided for windstorm or hail losses.

Answer 87

A guest of the insured

Answer 88

Damage caused intentionally by the insured's 10-year-old son | Intentional damage by a child under age 13 is covered.

Answer 89

A residence employee | The residence employee is eligible, if injured in the course of employment.