Insurance Chapter 3

Question 1

Declarations Page (what is on it)

Answer 1

representations of the applicant (name, address etc, agent name, policy period, premiums paid etc)

Question 2

List Section 1 Coverages

Answer 2

a - dwelling
b- other structures (listed as x% of a)
c- personal property (listed as x% of a)
d- loss of use (listed as x% of a)

Question 3

List Section 2 Coverages

Answer 3

e - personal liability
f - medical payments

Question 4

Coverage A Description

Answer 4

section 1
dwelling and attached structure
LAND NOT INCLUDED
materials and supplies used for construction of dwelling/structures on or next to residence

Question 5

Coverage B Description

Answer 5

section 1
other structures - detached garage, pool, fence, patios (detached), detached living spaces

Question 6

Coverage C Description

Answer 6

section 1
personal property - not just for inside home. usually has specific limits
$1000 watercraft (26 feet max sailing boat)
1000 jewelry and fur
2500 silverware
200 money

Question 7

Coverage C Exclusions

Answer 7

animals
cars/aircraft
property of boarders
property in an apartment rented to others

Question 8

Coverage D Description

Answer 8

section 1
Loss of Use
-additional living expenses incurred as a result of damage to insured property.

Question 9

Coverage E Description

Answer 9

section 2
- personal liability
-damages for which an insured is legally liable arising out of bodily injury or property damange BI/PD
- note, the property damage does not have to

Question 10

Coverage E Exclusions

Answer 10

liabilities from business activities, motorized land vehicles, watercraft over 26 feet/50 horsepower, aircraft, workers comp
in all policy types except for renters

Question 11

Coverage F Description

Answer 11

Medical Payments - section 2
- very limited amounts per person for expenses other than insured while on insureds location
NOT liability coverage
-in all policy types including renters

Question 12

Basic Form Perils

Answer 12

WHARVES FLT
wind
hail
aircraft
riot
vandalism
vehicles
explosion
smoke
fire
lightning
theft

Question 13

Broad Form Perils

Answer 13

basic +
RAF
rupture of system
artificially generated electricity
falling objects
frozen plumbing

Question 14

Open Perils

Answer 14

everything except items specifically excluded
USUALLY THE CORRECT ANSWER ON EXAM

Question 15

HO1 Covered Perils

Answer 15

a-d: basic

Question 16

HO2 Covered Perils

Answer 16

a-d: broad

Question 17

HO3 Covered Perils

Answer 17

a-open
b: open 10% of A
c: broad 50% A
d: open 30% A

Question 18

HO4

Answer 18

RENTERS
c: broad
d: broad 30%

Question 19

HO5 / HO3-15

Answer 19

a: open
b: open 10% A
c: open 50% A
d: open 30% A

Question 20

HO-6

Answer 20

CONDO
- a &b: coverage for interior, condo association covers the structure outside, named perils like cabinets and carpets
c: open
d: broad 50% C

Question 21

HO8

Answer 21

a-d: basic, mobile homes

Question 22

HO7

Answer 22

mobile home

Question 23

8 General Exclusions

Answer 23

OPEN WIF
ordinance of law
power failure
earthquake
neglect, nuclear hazard
war
intentional loss
flood

Question 24

Personal Property Floater

Answer 24

items are appraised and insured at specific value/agreed-value

Question 25

Replacement Cost vs. ACV

Answer 25

ACV: actual cash value = replacement cost - depreciation

Question 26

Dwelling Coverage Type

Answer 26

replacement cost

Question 27

Personal Property Coverage Type

Answer 27

ACV