Insurance

Question 1

Section 1 coverages (A-D)

Answer 1

A: dwelling
B: Other structures
C: personal property
D: loss of use

Question 2

Section 2 coverage (E-F)

Answer 2

E: personal liability
F: medical payments to others

Question 3

Basic Perils

Answer 3

1. Fire 2. Vehicles 3. Lightning 4. Smoke 5. Windstorm 6. Vandalism 7. Hail 8. Explosion 9. Riot 10. Theft 11. Aircraft 12. Volcano

Question 4

Broad perils

Answer 4

13. Falling objects 14. Weight of ice, snow sleet 15. Accidental overflow of water 16. Bursting appliances 17. Freezing of appliances 18. Damage from electrical current

Question 5

Open peril

Answer 5

Protects against all perils except those specifically excluded
Exclusions: neglect, flood and earthquake

Question 6

Exclusions from all HO policies

Answer 6

Movement of ground
Ordinance of law
Damage from water
War or Nuclear hazard
Power failure
Intentional act
Neglect

Question 7

Coverage A

Answer 7

Dwelling
Covers repair or replacement cost of house and attached structures
Must carry 80% of replacement cost

Question 8

Coverage B

Answer 8

Other structures
10% of amount of coverage A
Not covered if used for business

Question 9

Coverage C

Answer 9

Personal property
50% of the amount of coverage A
Limited places on personal property losses

Question 10

Coverage D

Answer 10

Loss of use
Additional living expenses incurred while home is damaged and
Rental income lost

Question 11

Coverage E

Answer 11

Personal Liability
Protects against claims of bodily injury and property damage

Question 12

Coverage F

Answer 12

Medical payments to others regardless of fault

Question 13

HO -1

Answer 13

Basic coverage

Question 14

HO-2

Answer 14

Broad coverage

Question 15

HO-3

Answer 15

Open perils coverage

Question 16

HO-4

Answer 16

Renters insurance
Broad form

Question 17

HO-6

Answer 17

Condo
Broad coverage

Question 18

HO-8

Answer 18

Basic perils
Covers repairs vs replacement

Question 19

HO-15

Answer 19

Endorsements

Question 20

The Principal of Indemnity

Answer 20

• insured only entitled to compensation to the extent of the insured financial loss
• cannot make a profit from an insurance contract

Question 21

Auto Insurance limits

Answer 21

Shown as 3 numbers ex: 50k/ 100k/ 30k
1) max amount for bodily injuries per person
2) total amount of bodily injuries per accident
3) max amount for property damage per accident

Question 22

Aleatory contract

Answer 22

Agreement effected by chance occurring when the involved parties pay an unequal $

Question 23

Unilateral contract

Answer 23

One sided contract

Question 24

Contract of adhesion

Answer 24

Terms of contract set by one party and agreed to and accepted by the other