Lesson 2 - Fire Flashcards

1
Q

Four major sections in fire insurance policies

A

1) Declarations
2) Insuring Agreement
3) Conditions
4) Exclusions

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2
Q

How to get Actual Cash Value?

A

Building Year x Depreciation % – Replacement Cost

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3
Q

Basic level fire policy perils include what?

A

1) Fire
2) Lightning
3) Removal

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4
Q

Assignment/ Transfer of Rights & Duties

A

Transfer of legal right/interest in an insurance contract to another person

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5
Q

Conditions

A

Obligations of insured and insurance company

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6
Q

Standard Mortgagee Clause

A

No voidance act on the part of the insured will prevent a mortgagee from collecting a loss payment

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7
Q

Pro-Rata Liability

A

Company will not be liable for greater portion of loss than amount insured shall bear to the whole sum of insurance

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8
Q

Three conditions contained in most fire insurance policies that suspend coverage

A

1) Insured increases hazard intentionally
2) Coverage suspended while building vacant for period beyond 60 days
3) Coverage restricted if loss is result of explosion, unless fire ensues

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9
Q

Five categories of forms with fire insurance contracts

A

1) Floater Form
2) Automatic/Reporting Form
3) Blanket Form
4) Specific Form
5) Schedule Form

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10
Q

Three basic dwelling fire policies

A

1) Dwelling Property Basic Form (DP- 00 01)
2) Dwelling Property Broad Form (DP- 00 02)
3) Dwelling Property Special Form (DP- 00 03)

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11
Q

DP- 00 01 policy facts

A

Named peril contract, building must be used as a dwelling that contains no more than 4 families, included against fire, lightning, removal & internal explosion

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12
Q

4 coverage sections in DP- 00 01 policy

A

1) Coverage A/ Dwelling
2) Coverage B/ Other Structures
3) Coverage C/ Personal Property
4) Coverage D/ Fair Rental Value

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13
Q

Added as an endorsement to DP- 00 01, IF there is an owner occupant

A

Additional Living Expense

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14
Q

Coverage for additional premium against perils under DP-00 01 policy

A

1) Extended Coverage Perils

2) Vandalism and Malicious Mischief (V & MM)

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15
Q

Extended coverage provides protection against what perils

A

1) Windstorm & Hail
2) Aircraft Damage
3) Riot & Civil Commotion
4) Vehicle Damage
5) Explosion
6) Volcanic Eruption
7) Smoke Damage

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16
Q

Conditions to V & MM

A

Damage/loss to property is NOT covered if dwelling has been vacant for more than 30 days

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17
Q

DP- 00 02 policy facts

A

Named peril contract with 5 sections of coverage, including Coverage E/ Additional Living Expense

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18
Q

What does Coverage E do

A

Pays excess beyond normal monthly living expenses

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19
Q

DP- 00 03 policy facts

A

Open peril dwelling fire contract

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20
Q

DP- 04 11

A

Automatic increase in insurance provides automatic pro-rata increase in coverage (inflation guard endorsement)

21
Q

DP- 11 43

A

Dwelling under construction is attached when intended occupant of dwelling is name insured

22
Q

DP- 04 41

A

Additional Insured is a contractor that can be added to DP- 11 43

23
Q

DP- 04 73

A

Theft Coverage Limited Form endorsement

24
Q

DP- 04 72

A

Theft Coverage Broad Form endorsement

25
Theft Coverage Broad Form endorsement
Covers owner occupied dwelling
26
Theft Coverage Limited Form endorsement
Used for non-owner occupied properties
27
DP- 04-71
Law Coverage provides coverage for loss caused by a covered peril to property
28
DP- 02-03
Cancellation and Non-Renewal modifications
29
DL- 24 01
Personal Liability Supplement that provides coverage similar to coverage appearing in liability section of Homeowners forms
30
Commercial Package Policy (CPP) includes what coverage parts
Commercial 1) Property 2) Liability 3) Inland Marine 4) Crime 5) Boiler & Machinery 6) Farm Property
31
Policy that provides protection for only one coverage area
Monoline Policy
32
Policy that contains coverage for more than one line
Package/Multi-line Policy
33
Only the named insured will benefit from coverage provided in commercial property conditions
No Benefit to Bailee
34
Commercial Property Coverage Forms
Coverage for property used for business purposes and more than four dwelling units
35
CP- 00 10
Building & Personal property form that provides coverage for physical loss/damage to property resulting from covered perils
36
Builder's Risk
Covers direct physical loss or damage to buildings under construction
37
Business Income Form
Covers actual loss of business income including net income and continuing normal expenses
38
Applies to personal property of the named insured in transit in or on a motor vehicle owned by the named insured
Transit extension
39
Specifies that in the event of a water damage loss, open peril coverage will also apply to repair
Water damage extension
40
Peak season endorsement
(CP–12 30) increases limit of insurance for business personal property which experience seasonal cycles in value
41
Value reporting form
(CP– 13 10) Used when covering property with fluctuating values or business inventory
42
Form to ensure against direct physical loss of scheduled perishable stock owned by the insured
Spoilage coverage
43
Specific form
Provides coverage for one kind of property and one definite location
44
Blanket form
Covers same kind of property in different locations or different types of property at a single location
45
Floater form
Coverage is used to cover goods in different locations
46
Automatic/reporting form
Used when it is difficult to provide accurate values because of fluctuations
47
Schedule form
Coverage often used by large risks (e.g. specific coverage)
48
DP 05 30
Functional replacement cost loss settlement