Cram

Question 1

The insuring clause (agreement) section of a policy describes:

Answer 1

Perils that are covered

Question 2

Which of the following best describes an assignment in the Conditions of a property policy?

Answer 2

Ownership of the policy may not be transferred without the insurer’s written permission

Question 3

The Conditions part of the policy

Answer 3

contains the general rules and duties under the policy.

Question 4

The insuring clause (agreement) section of a policy describes:

Answer 4

Perils that are covered

and the insurer’s promises to the insured.

Question 5

A hostile fire

Answer 5

one that leaves the area in which it was intended to be kept.

Question 6

a consequential loss

Answer 6

same as indirect (loss of rent)

Question 7

A ___________ construction material has a fire-resistance rating between one and two hours for walls, floors and roofs.

Answer 7

Modified fire-resistive

Question 8

Off-premises utility failure

Answer 8

is a common exclusion in property policies.

Question 9

Which of the following is provided by the Additional Coverages part of a property insurance policy?

Answer 9

The Additional and Supplementary coverages are coverages for incidental expenses that often accompany the losses insured against by the policy.

Question 10

Punitive damages

Answer 10

are awarded to punish a negligent party for extremely objectionable conduct.

Question 11

Special damages

Answer 11

are paid for tangible loss or damage, and general damages are paid when losses cannot be calculated objectively.

Question 12

Bodily injury

Answer 12

does not include personal injury

Question 13

Most no-fault laws restrict the rights of the injured party to sue unless

Answer 13

the injuries are severe, such as paralysis or death, and meet a threshold.

Question 14

Typical of No-Fault Liability

Answer 14

Negligence is not determined;
Typically applies to auto insurance;
Injured party collects from own insurance.

Question 15

Statute of Limitations

Answer 15

statutory defense, not a common law defense.

Question 16

An accident

Answer 16

sudden, unforeseen, unintended, and unplanned.

Question 17

Dwelling Fire Department Service Charge

Answer 17

policy deductible does not apply
is additional insurance
coverage does not apply if property locating in city furnishing the fire department response.

Question 18

Dwelling Policy “Personal Liability Supplement”

Answer 18

It provides coverage for claim expenses

Question 19

Dwelling policy limit on coverage for imporvements and betterments by insured tenant

Answer 19

10% cover C

Question 20

Dwelling form - Material on premises intended for repair or alterations included A, B, C

Answer 20

coverage A

Question 21

Dwelling form is Vandalism included in Dwelling basic form with or without EC

Answer 21

No it must be endorsed with added premium after 60 days no good.

Question 22

Dwelling Form Perils (WC SHAVER)

Answer 22

Fire, Lightning, interal explosion (with EC) WC Shaver
W - Windstorm
C - Civil Comotion

S - Smoke (excluded fireplace, agricultural smuding industrial opps
H- hail
A - Aircarft including space craft falling objects
V - Vehicles (excludes owners or tenants, also Valcanic action
E - Explosion, except steam pipes
R - Riot (glass breaking from any covered peril)

*VMM added by endoresment supends 60 days vacant

Question 23

Dwelling Coverages listed

Answer 23

A - dwelling
B - Other Structures — 10% of A in “other coverage”
C - Personal Property
D Fair Rental Value — 20% of A in “other coverage”

Question 24

Dwelling Other Coverage DP1 RIOT ROD

Answer 24

***Not additional amount of insurance (RIOT ROD)
R- Rental Value 30% A
I - Imporvemnts 10% of C
O - Other Structures - 10% of A
T Tempry moving of stuff to saftey 5 DAYS

R - Repairs to prevent damage
O - Off premises 10% of C - World Wide - no boats
D - Debris Removal

Question 25

General Exclusions DP1, DP2, DP3 (POWER)

Answer 25

POWER
P - Power Failure from utility service occuring outside premises
O- Ordincane or Law 
W - Water Rising, backing of sewers
E - Earth Movement
R - Rebellion, war, nuclear

Question 26

Dwelling - Broad Theft Endorsement

Answer 26

• can add to any dwelling forms
• only to owner -occupied structers
• it also includes vandalism reulting from theft
• ***ON AND OFF premises coverage

Question 27

Dwelling - trees and shrubs

Answer 27

$500 hundo 1 item or 5% of Coverage A

Question 28

HO Debris removal

Answer 28

policy allows additional 5% of debris removal

Question 29

HO Damage to Property of Others additional Coverage

Answer 29

intentional damage by child under age 13 is covered

Question 30

HO Random coverages

Answer 30

direct loss by fire, explosions, or theft from water damage

Question 31

HO what is excluded from all

Answer 31

EQ

Question 32

HO Section II deductible

Answer 32

They are not subject to deductible

Question 33

HO8 settles losses how

Answer 33

Functional replacement for A or B

Question 34

HO BI from normal drugs

Answer 34

A OK

Question 35

HO - Property is removed to avoid peril

Answer 35

30 days covered open perils