Chapter 6 Anatomy of a Property Policy : Exclusions Flashcards
What 5 conditions must be met to receive the replacement cost of a damaged or destroyed building?
Must be in the same location with a dwelling or detached private
structure of the same occupancy
with materials of similar quality
a reasonable time after the damage
will pay the cost to replace the item without depreciation.
What is an example of data?
a. email message
b. printer
c. laptop
c. a card that came in the mail
a. email message
The definition clause “We, us, and our” refers to the
a. company providing insurance
b. mortgagee or leaseholder
c. named insured
d. Additional insured
a. company providing insurance
The terms defined in the definitions clause are presented in what order?
a. in order of importance
b. numerically
c. alphabetically
d. from most to least amount of coverage
c. alphabetically
Under the basic and broad forms, animals, birds or fish are covered for every maned peril except impact by aircraft or land vehicle and
a. theft
b. tornado
c. lightning
d. flood
a. theft
Which of the following is coverage not provided for under Coverage A- Dwelling buildings:
a. swing set
b. fence
c. outdoor pool
d. garden shed
d. garden shed
What is the definition of terrorism in the definition clause
An ideologically motivated unlawful act or acts including the use of violence, or force that threats committed by any group or organization of government for the purpose of influencing or instilling fear in the public, It does not embrace legal protestor demonstration or self-expressing
What is the difference between vacancy and occupancy?
Vacant is where all occupants have moved out with no intent to return
Unoccupied is when no people are in the building, but they intend to return, they are temporarily away from the home or building.
A contractor incorrectly installs a subfloor before installing new tiles throughout the main floor of a home. The error isn’t discovered until the tile flooring is complete and, as a result, additional costs will now be incurred to rip up and replace both the subfloor and the tile. Which exclusion would an insurer rely on to deny a claim for these additional costs?
a. Intentional or criminal acts
b. Property being worked on
c. Faulty design, material, or workmanship
d. Trickery or fraud
c. Faulty design, material, or workmanship
Exclusions remove exposure to losses that are considered to be
a. insurable.
b. fortuitous.
c. uninsurable.
d. named perils.
c. uninsurable.
If a property is excluded under a comprehensive form, it is also likely excluded under the
a. basic form only.
b. basic and broad forms.
c. comprehensive form only.
d. broad form only.
b. basic and broad forms.
In the case study, if the loss had occurred while the home was still undergoing renovations, would the Scalas have been covered for the loss?
:
a. Yes, because loss or damage while under construction is not excluded.
b. No, because water damage is excluded even with permission for the construction.
c. Yes, because the insured obtained permission for the construction from the insurer.
d. No, because the loss was caused by one of the contractors.
b. No, because water damage is excluded even with permission for the construction.
In the case study, if the Scalas had come home and found their basement full of water because of a sewer backup, would there still be covered under the policy?
a. No, because sewer backup is specifically excluded from the policy.
b. No, because the insureds were away at the time of the loss and didn’t have anyone checking the premises.
c. Yes, because the base policy provides coverage for sewer backup losses.
d. No, because sewer backup falls under the flood exclusion.
a. No, because sewer backup is specifically excluded from the policy.
There are three instances where loss or damage caused by marring, scratching, abrasion, or chipping are still covered as they are exceptions to the exclusion. Which of the following is not an exception?
:
a. An accident to a land vehicle, watercraft, or aircraft
b. A specified peril
c. A theft or attempted theft
d. An accidental dropping of the item
d. An accidental dropping of the item
Under which of the following circumstances would property lawfully seized by a government agency be covered?
a. When it’s done to prevent vandalism.
b. When it’s done to prevent the spread of fire.
c. When it’s done to prevent a riot.
d. When it’s done because the insured stopped making payments on it.
b. When it’s done to prevent the spread of fire.
