Other Personal Insurance Policies

Question 1

MH policy are settled on a ______ basis

Answer 1

Actual Cash Value

Question 2

Coverage D Loss of Use MH (F)

Answer 2

premises uninhabitable, this coverage will cover any necessary increase in living expenses incurred

Question 3

Coverage D Loss of Use MH (C)

Answer 3

$10 per day up to a maximum of sixty (60) days

Question 4

Additional Coverage in the Mobile Homeowners Insurance Policy

Answer 4

coverage while moving the mobile home.

Question 5

Covered Perils under Mobile Homeowners Insurance Policies (8)

Answer 5

a. Fire or lightning (not scorching);

b. Windstorm or hail;

c. Explosion, smoke or smudge;

d. Aircraft and vehicles;

e. Flood and rising water;

f. Theft including vandalism and malicious mischief (VMM);

g. Falling objects;

h. Breaking glass or safety glazing material.

Question 6

Additional Perils in the MH (C) (4)

Answer 6

a. Sinking
b. Burning
c. Collision
d. Derailment of any conveyance transporting the mobile home.

Question 7

Additional Perils in the MH (F) (6)

Answer 7

a. Collapse of a building;

b. Sudden and accidental tearing apart of a steam or hot water heating system, air conditioning system or an appliance for heating water;

c. Sudden and accidental damage from artificially generated electrical current;

d. Freezing from plumbing, heating or air conditioning system or household appliance;

e. Weight of ice, snow or sleet;

f. Accidental discharge or overflow of water from a plumbing, heating or air-conditioning system or within a household appliance.

Question 8

COMPREHENSIVE PERSONAL LIABILITY (CPL)

Answer 8

Provides protection for an insured and his or her family members against liability exposures of bodily injury or property damage caused by risks such as pets, bicycles, children, participation in sports activity, operating some watercraft and other non-business activities.

Question 9

CPL limit

Answer 9

$100,000

Question 10

CPL Excludes (6)

Answer 10

a. Property owned by the insured;

b. Losses due to war or any act of war;

c. Losses as a result of liability assumed from a contract;

d. Bodily injury covered under Workers’ Compensation;

e. Personal injury damages from libel and slander;

f. Losses that are covered under another policy such as an auto policy.

Question 11

NATIONAL FLOOD INSURANCE PROGRAM (NFIP)

Answer 11

provide coverage against flooding (by direct loss) for all owners of insurable property (a building and/or its contents) in a community participating in the National Flood Insurance Program (NFIP).

Question 12

Nearly 25% of all floods occur in….

Answer 12

moderate to low-risk areas.

Question 13

Flood Peril Definition (4)

Answer 13

a. Overflow of inland or tidal waters;

b. Unusual and rapid accumulation or runoff of surface waters from any source;

c. Mudflow, as defined in the Homeowners Insurance Policy, is “A river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water”;

d. Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.

Question 14

Perils Not Covered by Flood Insurance (4)

Answer 14

1. earthquakes
2. landslides
3. sewer backup
4. earth movement.

Question 15

NFIP Emergency Flood Insurance Program

Answer 15

a. Agreed but not completed the process to adopt flood control measures (including zone ordinances that prohibit new construction in the flood plain);

b. Requested federal assistance and participation in the National Flood Insurance Program (NFIP).

Question 16

NFIP EMERGENCY Single Family Coverage

Answer 16

Building= 35,000
Contents= 10,000

Question 17

NFIP EMERGENCY Other Residential Structures

Answer 17

Building= 100,000
Contents= 100,000

Question 18

NFIP EMERGENCY Nonresidential Structures

Answer 18

Building= 100,000
Contents= 100,000

Question 19

NFIP Regular Flood Insurance Program

Answer 19

community must implement the requirements that they submitted when the community became eligible for the Emergency Flood Insurance Program.

Question 20

NFIP REG Single-family home

Answer 20

Building= 250,000
Contents= 100,000

Question 21

NFIP REG Other Residential Structures

Answer 21

Building= 250,000
Contents= 100,000

Question 22

NFIP REG Nonresidential Structures

Answer 22

Building= 500,000
Contents= 500,000

Question 23

Flood insurance policy becomes effective on the ________ after the applicant completes the application and pays the premium.

Answer 23

30th calendar day

Question 24

FIRM

Answer 24

Flood Insurance Rate Maps

Question 25

Flood Zones

Answer 25

geographic areas that the Federal Emergency Management Agency (FEMA) has defined according to varying levels of flood risk.

Question 26

The Standard Risk Flood Policy (SRP)

Answer 26

used to insure higher risk properties

Question 27

The Standard Risk Policy DOES NOT COVER

Answer 27

Contents *Unless added

Question 28

Preferred Risk Policy (PRP)

Answer 28

for moderate to low risk properties.

Question 29

Eligibility for the Preferred Risk Policy (PRP) (5)

Answer 29

a. Two (2) flood insurance claim payments, each more than $1,000;

b. Three (3) or more flood insurance claim payments, regardless of amount;

c. Two (2) federal flood disaster relief payments, each more than $1,000;

d. Three (3) federal flood disaster relief payments (including loans and grants), regardless of amount;

e. One (1) flood insurance claim payment and one (1) federal flood disaster relief payment (including loans and grants), each more than $1,000

Question 30

Deductibles in the Flood Insurance Policies

Answer 30

$500 for each building and $500 for the contents (personal property).

Question 31

Replacement Cost (RC) for Flood Ins.

Answer 31

Only single family dwellings as long as the coverage is at least 80%

Question 32

Actual Cash Value (ACV) for Flood Ins.

Answer 32

Contents

Question 33

The National Flood Insurance Program does not cover (5)

Answer 33

a. Money;

b. Lawns, trees, shrubs, plants, growing crops and livestock;

c. Fences, retaining walls, outdoor swimming pools, bridges and docks;

d. Buildings that are in, on or over water;

e. Underground structures such as wells and septic tanks.

Question 34

The Watercraft/Yacht Policy is a form of Ocean Marine insurance designed to cover vessels used solely as

Answer 34

personal pleasure craft

Question 35

Watercraft/Yacht Policy Section I Property Damage

Answer 35

open perils basis for physical damage, theft, sinking of the vessel, its tackle, passenger fittings, equipment, stores, and ordinances.

Question 36

Hull Coverage

Answer 36

damage to the hull of a ship and its machinery, and equipment

Question 37

Exclusions to Watercraft Property Damage

Answer 37

loss of personal effects not used in the normal operation of the boat and not permanently attached.

Question 38

Watercraft/Yacht Policy Section II Liability Coverage

Answer 38

pay for bodily injury (BI) and property damage (PD) caused by an insured and for which the insured becomes liable to pay.

Question 39

Expenses for third parties due to a boating accident filed within ____ years of the accident.

Answer 39

3

Question 40

Watercraft/Yacht Policy Section II Liability Coverage are covered on an _____ Basis

Answer 40

Actual Cash Value

Question 41

Personal Umbrella Liability Policy

Answer 41

provide high dollar amounts of liability coverage (typically $1 million or more)

Question 42

Personal Umbrella Liability Policy Drop Down

Answer 42

picks up where the underlying policy provides no coverage.

Question 43

Personal Umbrella Liability Policy as Excess Coverage

Answer 43

pay after the underlying coverage pays the full amount available

Question 44

Personal Umbrella Liability Policy Self-Insured Retention (SIR)

Answer 44

paid first by the insured before the Personal Umbrella Liability Policy pays any part of the claim.

Question 45

Follow Form

Answer 45

Personal Umbrella Liability Policy may be referred to as a follow form policy