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FL 220 License Exam > Chapter 7 - Misc Personal Lines > Flashcards

Chapter 7 - Misc Personal Lines Flashcards

1
Q

What exclusions apply to a Personal Articles Floater?

A

Wear and Tear, vermin, intentional loss, war.

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2
Q

Personal Articles Floater claims are normally settled on what basis?

A

ACV

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3
Q

Personal Jewelry Floater claims are normally settled on what basis?

A

ACV or Valued Basis

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4
Q

Describe the “Pair and Sets Clause”

A

When each item is worth more when in a set.

Value of the set - the value of the individual item = total loss

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5
Q

Describe the Personal Effects Floater

A

Provides open-peril, worldwide coverage for items worn on tourists.
No insurance is provided at home.

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6
Q

Describe the Fine Arts Floater

A

Provides auto coverage up to 90 days for newly acquired items.
Written on Valued or Agree basis
Exclusions - breakage due to restoration, mysterious disappearance, breakage not caused by “basic, basic” perils.

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7
Q

Describe the Cameras Floater

A

Auto coverage provided to newly acquired items for 30 days. 25% of the limit is applied.
Blanket coverage for shades and filters.

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8
Q

Describe the Musical Instrument Floater

A

No coverage for instruments used for hire.

Must report newly acquired items within 30 days

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9
Q

Describe the Personal Jewelry floater

A

Auto coverage for new items is provided for 30 days (as long as it is similar to the items already scheduled.)
Appraisal required before or at issuance.
Pair and Sets clause applies
Written on ACV or Valued

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10
Q

Describe the Boatowners Policy

A

Used to Insure Boats that can be towed by a car.

Section I - Open perils coverage for Property Damage to Hull, motor, trailer, equipment, and accessories for marine use. ACV

Section II - Liability, Med Payments, Uninsured Boaters,. No PIP (personal Injury).

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11
Q

Describe the Yacht Policy

A

Provides Hull Insurance, Protection and Indemnity and Medical Payments, personal property, coverage for fuel spills, commercial towing, and dinghies.
Has a “Lay Up Warranty” - when vessel is not in used, premium is returned. If used during “Lay Up,” no coverage is provided.
Contains a navigation territory (lakes or waterway). If Insured needs to use the vessel outside of territory, an endorsement is needed.

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12
Q

Describe Difference in Conditions?

A

Designed to fill gaps in insurance (earthquake, flood, collapse, and subsidence)
Often written with high deductible

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13
Q

Describe the Earthquake Endorsement?

A

Includes coverage for earthquake, land shock, landslide, mudslide, mudflow, sinkhole, and the rising, sinking, shifting of earth.
All earth movements within 72 hours are considered a single occurrence

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14
Q

Who pays or subsidizes flood losses?

A

FEMA

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15
Q

How can you obtain Flood Policies?

A

Through WYO or NFIP.

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16
Q

Do Agent have authority to bind coverage with the NFIP?

A

No, but they may write with NFIP.

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17
Q

With regard to NFIP, describe a participating community?

A

A community that has established an approved flood control program.
Property owners in participating communities are the only ones that can purchase flood insurance.

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18
Q

What are the characteristics of a covered flood loss?

A
  • Land must be normally dry
  • Flood must cover 2 or more acres OR cover the entire property and adjacent land.
  • must be result of tidal waves, mud-flow from accumulation of water, collapse or destabilization from erosion
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19
Q

Regarding NFIP, describe the characteristics of an eligible dwelling

A
  • 2 or more rigid outside walls
  • affixed on a permanent foundation
  • fully secured roof
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20
Q

Does the NFIP provide coverage for Personal Property?

A

Yes but not personal property in basements

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21
Q

Describe the NFIP exclusions

A
  • loss of profits
  • loss of access to property
  • business interruption
  • additional living expenses
  • ordinance or law
  • earth movement
    -theft
    -fire
    damage to plants
    -money
  • livestock
    -any structure on or entirely over water
22
Q

True or False - To obtain or renew a federal loan, a property owner must purchase flood insurance if located in a special flood hazard area?

A

True

23
Q

What form covers buildings owned by residential condo associations from Flood losses?

A

Residential Condominium Building Association Form

24
Q

What are the two programs available under the NFIP?

A

Emergency Program

Regular Program

25
Q

Describe the NFIP Emergency Program

A
  • Designated for communities in the earliest stage of pariticipation in NFIP
  • $35,000 Max for 1 to 4 family dwellings and $100,000 for other residential and non-residential buildings
  • $10,000 for personal property in a single family home
  • $100,000 for personal property on other residential and no-residential buildings
26
Q

Describe the NFIP Regular Program

A
  • For participating communities
  • $250,000 Max for residential buildings
  • $100,000 for personal property in residential buildings
  • $500,000 for non-residential buildings
  • $500,000 for personal property in non-residential buildings
27
Q

When does NFIP become effective?

A

The 30th calendar day after the applicant completes the application and pays the premium

28
Q

With regards to the NFIP, property is insured on a ________ basis, except 1 to 4 family dwellings and residential condos can be insured on a _______ basis.

A

With regards to the NFIP, property is insured on an ACV basis, except 1 to 4 family dwellings and residential condos can be insured on a RC basis.

29
Q

Is there a deductible for NFIP?

A

Yes, it applies separately for the building and personal property

30
Q

Property removed to protect it from flood is protected for how many days?

A

45 days

31
Q

With regard to NFIP, how much is provided for increased cost of compliance with flood plain ordinances or laws?

A

Up to $30,000

32
Q

What does FAIR stand for?

A

Fair Access to Insurance Requirements

33
Q

Describe the FAIR Plan

A

Provides homeowner or dwelling property coverage when standard market insurers choose to non-renew due to losses or will not write coverage

34
Q

Are farm properties eligible for FAIR Plan?

A

No

35
Q

Are incidental businesses eligible for FAIR Plan?

A

Some - book does not have examples .

36
Q

Do Agents having binding authority when writing FAIR Plans?

A

No

37
Q

What are the three reasons to have a personal umbrella policy?

A
  1. Provides additional layer of liability insurance after underlying limits have been exhausted
  2. Provides coverage on a broader basis
  3. Drops down to provide coverage when the underlying primary policy does not provide coverage
38
Q

When must the Insured pay a self-insured retention?

A

Only when the Umbrella drops down. Not when it acts solely as excess insurance.

39
Q

True or False - To be eligible for an Umbrella policy you must have Personal Auto and Personal Liability

A

Yes

40
Q

Umbrella policies provide excess insurance for what three types of claims?

A

Property damage, bodily injury, personal injury

41
Q

Are Umbrella policies designed to provide first party or third party coverage?

A

Third Party

42
Q

Describe the parts of Mobile Home Insurance

A

Similar to HomeOwners
Section I - Property
Coverage A - Dwelling
Coverage B - Other Structures 10% of Cov A
Coverage C - Personal Property - 50% of Cov A
Coverage D - Loss of Use 30%

Provides additional $500 for Property Removed to move mobile home
Section II - Liability

43
Q

If the Insured does not desire to insure the mobile home to 80%,what endorsement can be used?

A

Mobile Home Actual Cash Value Settlement Endorsement

44
Q

Describe the Transportation/Permission to Move Endorsement

A

Provides coverage for collision, upset, stranding, or sinking for up to 30 days while the mobile home is being moved to a new location.

45
Q

Who develops the rates for crop hail insurance?

A

Crop Hail Insurance Actuarial Association

46
Q

Crop - hail insurance is rated based on what?

A

Acres

47
Q

When does crop-hail insurance cease coverage?

A

When the crop is harvested (1 growing season)

48
Q

Describe Multi-Peril Crop Insurance

A

Provides coverage for 200 different types of crops and covers against adverse weather conditions, fire, insects, plant disease, wildlife, earthquake, and volcanic eruption.

49
Q

What perils are covered under Crop/Hail Insurance?

A

Named Perils
Additional Perils could be:
fire, lightning, wind, freezing drought, insects and disease

50
Q

Describe Windstorm Insurance Coverage

A

Provides coverage again wind/windstorms. Some states are excluded (coastal states - mainly eastern coastal, Texas, and Louisiana).

FL 220 License Exam (14 decks)

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