Insurance Chapter 9 (Property & Liability)

Question 1

Section 1:
Coverage A - Dwelling
Coverage B - Other Structures Coverage C - Personal Property Coverage D - Loss of Use
Section 2:
Coverage E - Personal Liability Coverage F - Medical Payments

Answer 1

Homeowner’s Insurance Policy

Question 2

1. Fire
2. Smoke
3. Explosions
4. Lighting
5. Hail
6. Windstorm
7. Theft
8. Vandalism
9. Damage from vehicles
10. Damage from aircraft
11. Riots and civil commotion
12. Volcanic eruption

Answer 2

Basic Coverage

Question 3

13. Falling objects
14. Weight of ice, snow, or sleet
15. Sudden and accidental tearing apart, cracking, burning, or bulging of a steam, hot water, air conditioning, or automatic fire protective sprinkler system, or from within a household appliance
16. Freezing of a household system, such as plumbing, heating, air conditioning, or automatic fire sprinkler system, or of a household appliance
17. Accidental discharge or overflow of water or steam 18. Sudden and accidental damage from artificially-generated electrical current

Answer 3

Broad Coverage - provides protection for all of the named perils covered in basic coverage, plus additional protection for named perils not covered under basic coverage.

Question 4

This means the insurance covers any risk that is not specifically excluded in the policy.

Answer 4

Open Perils Coverage

Question 5

What is an excess liability policy that provides a layer of personal liability protection above the liability coverages provided in the underlying homeowners, automobile and other policies when the liability coverage provided in those policies is insufficient to cover a claim.

Answer 5

Personal Liability Umbrella

Question 6

What is a supplement to a policy that provides additional coverage.

Answer 6

Endorsement

Question 7

Coverage A

Answer 7

Dwelling Coverage

Question 8

Coverage B

Answer 8

Other Structures

Question 9

Coverage C

Answer 9

Personal Property

Question 10

Coverage D

Answer 10

Loss of Use

Question 11

Coverage E

Answer 11

Personal Liability (Insured is liable)

Question 12

Coverage F

Answer 12

Medical Payments to Others (No Fault)

Question 13

Part A - liability coverage
Part B - medical payments coverage
Part C - uninsured and under-insured motorist coverage
Part D - coverage for damage to the insured’s automobile
Part E - duties after an accident or loss
Part F - general provisions

Answer 13

Personal Automobile Policy

Question 14

Provides for basic perils plus the additional perils

Answer 14

HO-2

Question 15

Provides greater protection for the dwelling by using an “open perils”, or “all-risks” definition instead of specifically listing the perils that are covered

Answer 15

HO-3

Question 16

Provides personal liability coverage plus coverage for personal contents on a broad perils basis and loss of use of the premises.

Answer 16

HO-4 (Renters/Tenants)

Question 17

Similar to HO-3, this provides personal property protection on an open perils, instead of a broad perils basis.

Answer 17

HO-5

Question 18

This covers the same perils provided in the HO-2 and HO4 forms, but does not provide building coverage other than for additions and alterations.

Answer 18

HO-6 (Condominium)

Question 19

Modified Form Policy. Instead of providing replacement cost coverage (using materials of like kind and quality) for damage to property by a covered peril, an (answer) policy provides repair cost (materials that are functionally equivalent to those used prior to the loss) coverage.

Answer 19

HO-8

Question 20

The first two numbers are for liability coverage for bodily injury for persons. In the 100/300 example, the policy pays $100,000 per person up to $300,000 in total for all persons injured in an accident. The last number is the liability coverage limit for property damage.

Answer 20

100/300/100

Question 21

The two terms are used interchangeably and mean liability without regard to negligence or fault. It applies to damage resulting from some extraordinarily dangerous activity or other statutorily defined activity

Answer 21

Strict (Absolute) Liability

Question 22

The act itself constitutes negligence, thereby relieving the burden to prove negligence (e.g., drunk driving). Burden of proof is initially borne by the injured party

Answer 22

Negligence Per Se

Question 23

This is a doctrine of the law of negligence that permits the use of reasonable evidence when a specific explanation of negligence is not available. For example, if a plane crashes, there is negligence. It does not have to be proven. There mere fact that a plane crashes implies negligence. Planes do not just fall out of the sky

Answer 23

Res ispa loquitur