Module 3 Flashcards
Standard fire policy
The SFP is the basis for all non-marine property insurance contracts in North Carolina.
The SFP covers 3 named perils:
Fire
Lightning
Removal
Proximate Cause
The SFP extends coverage to unnamed perils if the peril resulted from a named perils and the named peril was the proximate cause (aka concurrent causation) of the damage to covered property.
Extended Coverage Endorsement (EC) consist of: (WCSHAVER)
Wind
Civil commotion
Smoke
Hail
Aircraft
Vehicle
Explosion
Riot
Additional SFP endorsements:
Vandalism and Malicious mischief
Sprinkler leakage
SFP inception and expiration:
12:01 AM in the geographic area where the property is located. Maximum policy period of 7 years.
Pro Rata liability
If there are two or more insurance policies covering the same risk, the pro Rata liability clause obligated each insurance company to pay claims based on the percentage of coverage carried in each policy.
How long does the insured have to file a lawsuit against their insurer after meeting requirements of filing a claim?
3 years
Dwelling Policy (DP)
Typically used to insure residences that are not owner-occupied, but instead are used as rental properties.
The SFP, when originally written has how many lines?
165
The insurance company must settle the claim within how many days after receiving proof of loss from the insured?
60 days
What is the maximum policy period for a SFP?
7 years
Dwelling policies are designed for properties that have no more than how many apartment units?
4
How many roomers/boarders are allowed per apartment units under a dwelling Policy?
5
In the Dwelling Forms Medical Payments, what is the minimum coverage?
$1000
