home owners

Question 1

HO-2

Answer 1

basic perils + additional perils associated with falling objects, weight of ice, snow, sleet, accidental discharge or overflow of water, bursting of steam appliances or hot water systems, freezing an accidental damage caused by artificially generated electrical current

Question 2

HO-3

Answer 2

Uses an “open perils” or “all risks” definition instead of listing the specific perils

Question 3

HO-4

Answer 3

renters insurance

does not cover the dwelling

Question 4

HO-5

Answer 4

comprehensive home owners insurance

provides personal property protection on an open perils, instead of a broad perils basis

Question 5

HO-6

Answer 5

Condo Home owners insurance

covers the same perils as HO-2, but does not cover building coverage other than from additions or alterations.

Question 6

HO-8

Answer 6

• latest form of homeowners insurance
• instead of providing replacement cost, it provides repair cost
• typically used for those that live in expensive homes

Question 7

Section I of home owners coverage

Answer 7

Property Coverage
A- Dwelling
B- Other structures
C- Personal Property
D- Loss of use and additional living expenses

Question 8

Section II of home owners coverage

Answer 8

Liability Coverage
E- Personal liability
F- Medical Payments

Question 9

Section III of home owners coverage

Answer 9

Additional coverage options

• Flood insurance
• earthquake insurance
• additional coverages

Question 10

All-risk policy

Answer 10

insurance company must provide evidence that the loss is not covered under the policy before it can be denied.
Burden of proof is on the insurer

Question 11

Risks with a partial loss scenario

Answer 11

an insured could be paid less than the full loss amount due to coinsurance requirements.

Question 12

basic coverage

Answer 12

protects the home ownder from losses associated with specifically named perils

Question 13

broad coverage

Answer 13

provides protection for all of the named perils covered in basic coverage plus additional protection for names perils not covered.

Question 14

open perils

Answer 14

cover any risk to the home that is not specifically excluded in the policy.

Question 15

General Home Owner Exclusions

Answer 15

movement of ground
ordinance or law-regulating construction, repair or demolition
damage from rising water
nuclear hazards
war 
intentional acts
neglect

Question 16

Common Home Owner Perils

Answer 16

fire, theft, smoke, vandalism, explosions, hail, wind, damage from aircraft, volcanic eruption, riots and civil commotion, damage from vehicles

Question 17

Components of Automobile insurance

Answer 17

A- liability
B- Medical coverage
C- uninsured and under-insured motorist coverage
D- coverage for damage to the insureds automobile
E- duties after an accident or loss
F- general provisions

Question 18

PLUP

Answer 18

-Personal Liability Umbrella Plan
-an excess liability policy that covers liability in excess of the underlying liability coverage for home and auto policies
must have certain mins on coverage
-usually 1Mill coverage or more
-purpose if to protect the assets and earning power from levy and seizure in which the insured is held liable for damages to property or to persons
-if insured fails to maintain coverage as required by the umbrella policy, they will need to pay the difference out of pocket if a claim arises
-

Question 19

Product Liability examples

Answer 19

• manufacturing a harmful product
• selling a defective product
• packaging the product inappropriately
• providing insufficient directions or warnings for use

Question 20

Scheduled Personal Property Endorsement

Answer 20

additional insurance protection.
when an endorsement is purchased, the additional amounts of insurance are listed in a schedule that specifies the dollar amounts of insurance for specified personal items attached to the homeowners policy