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P/C Insurance > HO - Dwelling Study deck > Flashcards

HO - Dwelling Study deck Flashcards

1
Q

Property excluded on the standard fire policy that are mostly indirect value

A
  1. Money
  2. Accounts (including bookkeeping records)
  3. Valuable papers
    a. securities certs
    b. legal docs
    c. Manuscripts (such as blueprints)
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2
Q

Perils excluded on standard fire policy

A
  1. War
  2. Theft
  3. Neglect to save and protect from loss
  4. loss caused by an order of a civil authority
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3
Q

Two types of property and casualty insurance policies

A
  1. Personal lines property/casualty insurance.
  2. Commercial lines property/casualty insurance
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4
Q

Includes Homeowners insurance, Dwelling insurance, and personal auto

A

personal lines property/casualty insurance

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5
Q

Includes commercial property insurance, commercial package policies, commercial general liability insurance, commercial crime insurance, and business auto insurance

A

Commercial lines property/casualty insurance

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6
Q

WC Shaver

A

W - Windstorm
C - Civil Commotion
S - Smoke damage
H - Hail
A - aircraft
V - vehicle and volcanic action
E - Explosion
R - Riot

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7
Q

Extended Coverage (E.C.) endorsement covers what perils?

A

WC SHAVER

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8
Q

Extended Coverage perils exclusions

A
  1. Nuclear reaction
  2. Earth movement
  3. Flood, sewer backup and water below surface
  4. power interruption away from the premises
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9
Q

Vandalism and malicious mischief (V.M.M.) endorsement perils covered are:

A

Damage caused by vandalism and malicious mischief.

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10
Q

Vandalism and malicious mischief (V.M.M.) endorsement perils excluded:

A

any vandalism and malicious mischief coverage is excluded after the building has been left vacant 30 consecutive days.

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11
Q

Dwelling building and contents basic (DP-1) form policy requirements:

A
  1. The property must be occupied by four or less families.
  2. The property does not have to be owner occupied
  3. Dwelling policies are often used to insure rental properties that the insured owns and rents to others to live in.
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12
Q

DP-1 (BASIC) perils covered

A
  1. Three standard fire policy perils.
  2. WC Shaver (E.C.)
  3. V.M.M.
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13
Q

DP-1 perils excluded

A
  1. the 4 Standard fire policy exclusions
  2. The 4 E.C. perils
  3. V.M.M. is the premise is vacant for 30 consecutive days.
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14
Q

DP-1 coverages

A
  • Coverage A - Dwelling - ACV (automatically extended)
    -Coverage B - Other Structures, 10% of coverage A, (automatically extended)
    Coverage C - Personal Property - (OPTIONAL, ADDITIONAL)
    Coverage D - Rental Value - 10% of Coverage A (automatically extended)
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15
Q

Who’s personal property is covered by DP-1 Coverage C personal property?

A

The property owner, not the tenants.

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16
Q

Provides that if within the policy period the insurance company changes its policies so as to provide more coverage without additional premium charges, the policy will automatically have the broadened coverage added without any forms or endorsements added to the policy

A

Liberalization Clause

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17
Q

DP-2 = ?

A

Dwelling Building and Contents Broad (DP-2) form

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18
Q

What does DP-2 cover?

A

It covers dwelling buildings and, optionally, personal property owned by the insured.

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19
Q

What are the DP-2 BROAD form perils covered?

A

1-3. Standard Fire Policy perils (hostile fire, lightning, removal)
4-11. WC Shaver (E.C.)
12. V.M.M.
13. Broader explosion and broader smoke coverage
14. Glass Breakage
15. Damage caused by burglars
16. falling objects (tree limb)
17. Weight of ice, snow and sleet
18. Collapse
19. Artificially generated currents (freezer motor breaks/power surge) (electricity)
20. Freezing of or discharge from a plumbing, heating or cooling system.

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20
Q

DP-2 perils excluded

A
  1. the 4 perils excluded under the standard fire policy
  2. The perils excluded under the E.C. endorsement
  3. V.M.M. excluded if premises is vacant for 30 consecutive days.
  4. Damage caused by agricultural or industrial smudging.
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21
Q

DP-2 Broad Coverages

A

Coverage A - Dwelling - Replacement value (coinsured)

Coverage B - Other Structures - Optional, Additional

Coverage C - Personal Property - Optional, Additional

Coverage D - Rental Value - Optional, Additional

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22
Q

All coverages under DP-2 Broad are both ________ & _________

A

Optional ; Additional

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23
Q

The dwelling (under Coverage A, as well as B and D, if added) is protected against loss up to its _________. Personal property, if added under Coverage C, is protected against loss up to it’s _____________.

A

Replacement Cost ; Actual Cash Value (ACV)

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24
Q

Does DP-1 basic and DP-2 broad include the Liberalization Clause? (Y/N)

A

Yes

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25
Q

What does DP-3 Stand for?

A

Dwelling Building and Contents Special (DP-3) form

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26
Q

DP-3 Special form (all-risk) perils cover for buildings vs personal property?

A
  1. Buildings (under Coverage A, as well as B and D, if added) are protected against damage caused by all risks (except those perils specifically excluded).
  2. Personal Property (under Coverage C, if added) is protected against damage caused by the broad form named perils)
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27
Q

DP-3 Perils excluded

A
  1. the 4 Standard Fire policy perils
  2. The 4 E.C. endorsements perils
  3. V.M.M. is excluded if premises is vacant 30 consecutive days
  4. Damage caused by agricultural or industrial smudging.
  5. Damage caused by wear, tear, rot, deterioration, settling, cracking, mold, rust, inherent vice, discharge of pollutants.
  6. The cost of repairing mechanical breakdown.
  7. Damage caused by birds, vermin, rodents, insects or domestic animals
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28
Q

DP - 3 Coverages

A

Coverage A - Dwelling - replacement value (coinsured)

Coverage B - Other Structures ( outbuilding or appurtenant structures) - OPTIONAL & ADDITIONAL coverage

Coverage C - Personal Property - OPTIONAL & ADDITIONAL coverage

Coverage D - Rental Value - OPTIONAL AND ADDITIONAL coverage

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29
Q

For DP-3, the dwelling (under Coverage A, as well as B and D, if added) is protected against loss up to its ____________. Personal property, if added under Coverage C, is protected against loss up to its ______________.

A

Replacement Cost ; Actual Cash Value (ACV)

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30
Q

Does the DP-3 include a Liberalization clause? (Y/N)

A

Yes

31
Q

This Policy is used to cover commercial (business) buildings

A

Building and Personal Property form

32
Q

Other than covering commercial (business) buildings, what else can the building and personal property form be used for?

A
  1. It can be used for rental properties with more than 4 families
  2. It can be used for office buildings, store buildings, malls, warehouses, or industrial buildings
33
Q

What can Building and Personal Property form be written to cover?

(Which cause of loss forms)

A
  1. Basic Cause of Loss form
  2. Broad Cause of Loss form
  3. Special (all risk) cause of loss form
34
Q

What do all three forms (basic, broad, special) cover for building and personal property?

That would be privy to business buildings

A

sinkholes, sprinkler leakage damage, and debris removal

35
Q

Building and Personal Property excluded perils

A
  1. 4 Standard fire policy perils
  2. 4 E.C. coverage perils
  3. V.M.M. coverage is vacant for 30 consecutive days
  4. Damage caused by agricultural or industrial smudging
  5. Damage caused by wear, tear, rot, deterioration, settling, cracking, mold, rust, inherent vice, discharge of pollutants
  6. The cost of repairing mechanical breakdown
  7. Damage caused by birds, vermin, rodents, insects, or domestic animals (including watchdogs)
  8. Vacancy or UnOccupancy clause
36
Q

Building and Personal Property form Coverages (Optional & Additional)

A

Coverage A - Building (including signs and objects attached to the building)

Coverage B - Personal property of the insured (either the insured premises or within 100 feet of it).

Coverage C - Personal property of others (Bailee Coverage)

37
Q

Building and Personal Property form Coverage (Automatic Extensions)

A
  1. Personal Property of others and personal effects
  2. Off-premises
  3. Newly acquired property
  4. Valuable papers and records (but not bookkeeping records).
  5. Outdoor trees, shrubs, plants, fences, antennas, signs, not attached to the building, but within 100 feet of it.
38
Q

The building and personal property policy covers both buildings and personal property for it’s _____________ only.

A

ACV (and endorsement can be added for an extra premium charge to protect buildings and/or personal property against loss up to replacement cost)

39
Q

Does the building and personal property policy include Liberalization Clause?

A

Y

40
Q

For the building and personal property form, the Indirect Loss-Time Element Coverages are?

A
  1. Business Income Coverage.
  2. Extra Expense coverage
41
Q

It covers the loss of earnings of a business while it is shutdown to remodel and restock because of a covered peril

A

Business income coverage

42
Q

This endorsement is used when a business must continue operations while the insured premises are being remodeled and/or restocked as a result of a covered peril

A

Extra Expense Coverage

43
Q

Dwelling does/does not need to be owner occupied?

A

does not

44
Q

Homeowners does/does not need to be owner occupied?

A

Does

45
Q

These policies package together property insurance and casualty insurance coverages to cover dwellings that people live in.

A

Homeowners Policy

46
Q

Homeowners packages must be occupied by ______ families or less.

A

four

47
Q

Homeowners Coverage A

A

Coverage A - Dwelling - The dwelling is protected against loss up to limits of liability stated in the policy. Except for H.O. 8, the limits of liability are determined by the replacement cost. The H.O. 8 modified form is the only homeowner policy that protects the dwelling and all types of property for ACTUAL CASH VALUE (ACV)

48
Q

Except for the H.O. 8 Modified form, for an extra premium charge personal property can be covered for ______________

A

replacement cost

49
Q

When personal property is covered for replacement cost, the Homeowner’s Coverage C - Personal Property limit of liability is usually ____% of coverage

A

70

50
Q

H.O. Coverage B - Other Structures (Appurtenant Structures or Outbuildings)

A

Coverage B - Other Structures (Appurtenant Structures or Outbuildings) - AUTOMATIC ADDITIONAL 10% of coverage A, or specified amount.

51
Q

H.O. Coverage C - Personal Property

A

Coverage C - Personal Property - AUTOMATIC ADDITIONAL 50% of Coverage A for ACV. With the extra premium, personal property is protected against loss up to its replacement cost.

52
Q

H.O. Coverage D - Loss of Use (Additional Living Expense and Rental Value)

A

Coverage D - Loss of Use (Additional Living Expense and Rental Value) - AUTOMATIC ADDITONAL 10% of Coverage A on H.O. 1 and H.O. 8. It is 30% of Coverage A on all others. “Rental Value Coverage”

53
Q

H.O. Coverage E - Personal Liability Coverage

A

Coverage E - Personal Liability coverage -

  1. Pays all sums for which an insured person becomes legally liable for bodily injuries and/or property damage caused to other people other than the insured which are referred to as 3rd parties. It covers liability on or away from the insured premises not to exceed the policy limits of liability. Minimum is $25K
  2. Doesn’t cover personal injury liability such as libel, slander, defamation of character, wrongful entry or eviction, or false arrest or illegal detention.
  3. An insured is any member of the insured household who is relative or who is under 21.
54
Q

H.O. Coverage F - Medical Payments

A

Coverage F - Medical Payments

  1. It covers only medical expenses incurred by somebody other than the insured or a member of his/her household.
  2. It pays all medical expenses incurred within 3 years of an accident on the insured premises or caused by the activities of the insured, his animal, or a resident employee away form the insured premises including ambulance and funeral expenses.
  3. It pays whether the insured was legally responsible for the injuries or not.
  4. There is usually a per person limit (such as $5,000) and an aggregate (total) limit in a higher amount (such as $25,000) per occurance.
  5. Having medical payments coverage will usually avoid having a liability claim made against the insured.
55
Q

What are the seven policies in the Homeowner series?

A

HO 1, HO 2, HO 3, HO 4, HO 5, HO 6, HO 8

56
Q

It protects both the dwelling and personal property against the 12 basic perils which include the 3 Standard Fire policy perils, the 8 E.C. perils and loss due to V.M.M.

A

H.O. 1 homeowners basic form

57
Q

What is an automatic additional 10% of Coverage A under the HO 1 and HO 8, but 30% of coverage A for all others?

A

Coverage D - Loss of Use (Additional Living Expense)

58
Q

With all other homeowners policies other than HO 1 and HO 8, Coverage D - Loss of Use coverage is _____ of Coverage A

A

30%

59
Q

HO 8 Modified form - is the same as the HO 1 basic form except:

A

a. The Homeowner HO 8 modified form is the only HO policy that protects both the dwelling and personal property against loss up to limits of liability that are determined by ACV

b. All of the other HO policies protect dwellings and other structures for replacement costs.

c. Like the HO 1, Coverage D - Loss of Use coverage is an AUTOMATIC ADDITIONAL 10% of coverage A

60
Q

Homeowners Broad Form - Protects both the dwelling and personal property against the approximate 20 broad form named perils.

A

HO 2 Broad FOrm

61
Q

Homeowners Special form - Protects the dwelling against all risks (except those excluded). It protects personal property (under coverage C) against the approximate 20 broad form named perils.

A

HO 3 Homeowners special form

62
Q

Homeowners Contents Broad form (Tenants Coverage) - Protects personal property (no building or outbuilding coverage) against the approximate 20 broad form named perils.

A

HO 4 Homeowners Contents Broad Form (Tenants Coverage)

63
Q

Protects personal property against loss up to limits of liability determined by ACV unless an extra endorsement is added for an extra premium charge to protect personal property up to its replacement cost.

A

HO 4 Homeowners Contents Broad form (Tenants Coverage) Coverage C

64
Q

HO 4 Homeowners Contents Broad form (Tenants Coverage) - Coverage D - Loss of Use (additional living expense) is an automatic ____% of coverage C.

A

30%

65
Q

Homeowners Comprehensive form - Protects both the dwelling and personal property against all-risks (except those excluded)

A

HO 5 Homeowners Comprehensive form

66
Q

A separate policy must be purchased by the condominium owners’ association to cover the exterior of the buildings, outbuildings, and common properties owned by the condominium owners collectively.

A

HO 6 Homeowners Condominium Unit - Owner’s form

67
Q

HO 6 Section 1 Coverage A

A

Building coverage is Replacement cost coverage to protect interior walls, ceilings, floors, and/or other structures that the condominium owner individually owns.

68
Q

HO 6 Section 1 Coverage B

A

Other Structures are usually covered by the condominium owners’ association policy. If the condominium owner is responsible for insuring outbuildings, Coverage B - Other Structures coverage is OPTIONALLY AVAILABLE.

69
Q

HO 6 Section 1 Coverage C

A

Protects personal property against loss up to limits of liability determined by ACV unless an extra endorsement is added for an extra premium charge to protect personal property up to its replacement cost.

70
Q

HO 6 Section 1 Coverage D

A

Loss of use (Additional Living Expense) coverage is an additional 30% of Coverage C

71
Q

HO 6 Section 2 Coverage E & F

A

Coverage E - Personal Liability coverage

Coverage F - Medical Payments coverage

72
Q

Without additional premium, the HO 6 protects both buildings and personal property against the broad form perils. For an additional premium, buildings can be protected against the special (all risk) perils and personal property against the broad form perils

A

NOTE*

73
Q

If an insured incurs loss of one of a pair, the insurance company has the option of paying the loss in actual cash value or restoring the pair

A

Loss of pairs

74
Q

Perils included in standard fire policy

A
  1. Hostile Fire
  2. Lightning
  3. Removal

P/C Insurance (4 decks)

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