FUNDAMENTALS, REGULATIONS, DWELLING INS

Question 1

cubic feet in a cubic yard

Answer 1

27

Question 2

Insurance law recognizes two types of waivers. They are.

Answer 2

Express” and “Implied” waivers

Question 3

Consideration:

Answer 3

is something of value exchanged between the parties.

Question 4

Aleatory contract

Answer 4

mutual obligations dependent on uncertain events

Question 5

Contract of adhesion

Answer 5

A contract that is written by one party and merely accepted by the other party “as is” is known as a “contract of adhesion”

Question 6

Executory

Answer 6

duties of insured and the insurance company, before contract be fully “executed”

Question 7

Pro-rata share method

Answer 7

Where we divide Indemnify Insurance’s share of the loss by the total limit of both policies, multiplied by the loss, leaves Indemnify paying 60% of the loss. 60% of the $40,000 loss, is $24,000

Question 8

Equal shares method

Answer 8

All insurers pay an equal amount until the loss is paid or one of the policy limits is exhausted. Because Insurer 3 has the lowest policy limit of $100,000, all three insurers will each pay equal shares of $100,000. This takes care of $300,000 of the $500,000 loss and exhausts the policy limit of Insurer 3. This leaves Insurers 1 & 2 left to pay $200,000. If they each pay an equal share of the $200,000, they will each pay $100,000 on the remainder of the loss. This means Insurers 1 and 2 pay a total of $200,000 each and Insurer 3 paying $100,000 for a total of $500,000.

Question 9

Fiduciary

Answer 9

A person who is entrusted with the assets of another.

Question 10

The law of agency (IMPORTANT)

Answer 10

someone is authorized by contract to represent another party.

Question 11

Binders

Answer 11

A coverage binder provides temporary coverage while the insurer underwrites and issues the actual policy.

Question 12

Ambiguous language

Answer 12

A rule that protects the insured from obscurity and inexactness that might be contained in an insurance policy or contract.

Question 13

Unearned premium (UEP)

Answer 13

UEP must be returned on a short-rate basis.

Question 14

Pro-rata share method

Answer 14

When the insurer pays the proportion that its policy limit bears to the limits of all policies, this is known as:
Formula: divide limit of coverage by full coverage amount then multiply the loss times the percentage.

Question 15

THE FRAME THAT HOLDS THE GLASS IN A WINDOW

Answer 15

sash

Question 16

Which section of the 1943 New York Standard Fire Policy contains the information regarding the policy term?

Answer 16

The Insuring Agreement.

Question 17

The four main sections of a Standard Fire Policy are:

Answer 17

Declarations, Insuring Agreement, Conditions, and Exclusions.

Question 18

Which sections of the Standard Fire policy are found on the first page of the policy?

Answer 18

The Declarations page and the Insuring Agreement.

Question 19

The Standard Fire policy provides coverage for

Answer 19

fire, lightning and removal.

Question 20

removal coverage Standard fire policy

Question 21

Under the 1943 New York Standard Fire Policy, how many days of coverage applies to the removal coverage when the insured property is endangered by the perils insured against?

Answer 21

5

Question 22

Which of the following is the best definition of “fire

Answer 22

Combustion, accompanied by visible light

Question 23

A “hostile fire” is defined by the Standard Fire policy as:

Answer 23

One that burns beyond its intended boundaries

Question 24

Under the Standard Fire Policy, how many days advance notice does the insurer have to give before cancelling a policy?

Answer 24

5

Question 25

What is NOT a loss settlement option under the 1943 New York Standard Fire policy?

Answer 25

Paying the replacement cost value of the loss

Question 26

Payment for a covered loss under the 1943 New York Standard Fire policy must be made within ______ days after a satisfactory proof of loss has been received by the insurer.

Answer 26

60

Question 27

Payment for a covered loss under the 1943 New York Standard Fire policy must be made within ______ days after a satisfactory proof of loss has been received by the insurer.

Question 28

Under the 1943 New York Standard Fire policy, the appraisal clause indicates that each party in a dispute must select an impartial appraiser within:

Answer 28

20 days

Question 29

Insurance of binder

Answer 29

60 days or less

Question 30

The DP-1 form

Answer 30

basic or named perils (the Basic Form);

Question 31

The DP-2 form

Answer 31

covers the broad form perils

Question 32

The DP-3 form

Answer 32

covers the special form perils.

Question 33

Coverage Sections DP 1,2,3
NAME COVERAGE A, B, C, D, E

Answer 33

• Coverage A: Dwelling
• Coverage B: Other Structures
• Coverage C: Personal Property
• Coverage D: Fair Rental Value
  Coverage E: Additional living expenses

Question 34

Dwelling Fire” form?

Answer 34

DP-1

Question 35

The standardized Dwelling forms consider all eruptions of a volcano within a __________ period to be a single “occurrence”.

Answer 35

72

Question 36

only loss that would be covered by the peril of “internal explosion” under a DP-1 form is

Answer 36

the explosion of the furnace

Question 37

The DP-3 only provides damage to covered property caused by the burglars.

Answer 37

yes

Question 38

It provides open peril coverage on the structure and named peril coverage on the personal property

Answer 38

DP-3 special form

Question 39

“open peril” coverage for dwellings and other structures?

Answer 39

The DP-3 special form.

Question 40

unendorsed DP-3 dwelling policy

Answer 40

theft no. damage by theft yes

Question 41

“Sudden and Accidental Tearing Apart, Cracking, Burning or Bulging” broad form peril

Answer 41

structural wall of the covered dwelling or other structure

Question 42

The DP-2 form, automatically includes

Answer 42

EC perils, V&MM coverage, and the broad form perils.

Question 43

DP 1,2,3 other coverages all included except:

Answer 43

DP1 tress collapse, glass, ordinance

Question 44

Payments to A, B, C all ACV except:

Answer 44

A, B - DP2 - Dp3 RCV

Question 45

Under a standardized Dwelling form, a loss by a covered peril for Improvements, Alterations and Additions is covered for up to:

Answer 45

10% of the Coverage C limit.

Question 46

Excluded peril under all the dwelling forms

Answer 46

Flood

Question 47

A standardized Homeowners policy is best described as:

Answer 47

A package policy that provides both property and liability insurance.