Dwelling Definitions

Question 1

Policy Period

Answer 1

The time the policy is in effect for. Starts at 12:01 am.

Question 2

Mortgage Clause

Answer 2

Protects the interests of the mortgagee by adding them as a payee.

Question 3

Liberalization Clause

Answer 3

A change that broadens coverage without an additional premium charge, the coverage will be extend to the policy.

Question 4

Concealment or Fraud

Answer 4

Entire policy will be void if the insured

a. intentionally concealed or misrepresented any material fact or circumstance
b. engaged in fraudulent conduct
c. made false statements.

Question 5

Recovered Property

Answer 5

if property is recovered, the insured chooses to retain the property. If so the property value will be deducted from the loss.

Question 6

Duties after Loss

Answer 6

1. give the insurer prompt notice
2. protect the property from further loss
3. keep accurate records when making reasonable repairs
4. cooperate with the insurer
5. show damaged property
6. send proof of loss within 60 days

Question 7

Loss Settlement

Answer 7

DP policies settle Personal Property on an Actual Cash Value Basis
Buildings are at replacement cost with no deduction for depreciation only if the loss is less than 5% of the dwelling limit and less than $2500.
Building insurance must equal 80% or more of the full replacement cost of the building
DP1 only pays on an ACV Basis

Question 8

Other Insurance Agreement

Answer 8

Coverage will be done on a percentage basis.
EX: Co A Has $40,000 of coverage
Co B has $60,000
Add the two Limits=100k
Each company then pays the percentage of the total limit. In this case, 40% and 60%.

Question 9

Loss Payable Clause

Answer 9

Protects a loss payee listed in the declarations if there is a loss for personal property. They are considered an insured with respect to that property.

Question 10

Legal Action Against an Insurer

Answer 10

no action can be brought against the insurer unless there has been full compliance with all terms of the policy and the action is started within two years after the date of loss.

Question 11

Theft Coverage Endorsement

Answer 11

Broad Theft Coverage-coverage for theft on and off the premises
Limited theft coverage coverage only for on the premises

Question 12

Personal Liability Endorsement

Answer 12

Personal & Business coverage

Question 13

Automatic Increase in Insurance for Inflation

Answer 13

Increased the limit of coverage a annually