PC Chapter 5

Question 1

Additional Coverages

Answer 1

additional coverages are provided without additional cost in property contracts. examples would include payment for debris removal and for fire department servies charges. the coverage may pay an amount to the stated limits of the policy

Question 2

additional living expsenses

Answer 2

an indirect loss coverage designed to offset the additional cost of living temporary quarters while a dwelling is being rebuilt or repaired. foun in the homewoners and dwelling policies

Question 3

all risks

Answer 3

all risks are mean to convey the company is providing special or open perisl coverage on propery policy. all risk is an antiquated term that is legally indefensible because it implies everything is covered when actually there are exclusions even with special or open perils coverage

Question 4

appurtenant structure

Answer 4

in a homeowners policy an appurenant structure is a builidng or structure other than a dwelling. for example a detached garage or a tool shed

Question 5

basic peril

Answer 5

a peril or cause of loss form in which 11 named perils can be covered in a commercial lines property poliyc and 9 named perils in a personal lines policie

Question 6

betterments and improvements

Answer 6

protection gennerally provided tentants against loss to additions or changes made at their own ex[ses that enhance the value of the property they occupy

Question 7

broad form homeowners

Answer 7

H02

Question 8

Broad Perils

Answer 8

a peril or cause of loss form in which 14 names perils plus collapse can be covered in a commercial lines properrty police or 12 named perils pluc collapse in a personal lines policie

Question 9

Builidng Ordinance

Answer 9

builidng codes ( ordincance or law) dictate how builidngs must be constructed to ensure safety and other converns are met. financial losses suffered by an insured that result from the imposition of a bulidng ordinace are either not covered or limited in coverage. adequate coverage can be purchses with an endorsement

Question 10

Comprehensive Form Homeowners

Answer 10

HO 5

Question 11

Concurrent Causation

Answer 11

the concept in insurance that stae that when two perils ( one covered and one excluded) damdage covered property at the same time the insurance compay will only pay for the damage covered by the covered peril

Question 12

condominium form homeworners

Answer 12

HO 6

Question 13

Consequential Loss

Answer 13

generally an inderect loss. specifically an endoresement that can be purchased within an equipment breakdown policy that would cover losses that occur adfter and as a result of riedct loss. example spoilage that occurs after a power loss

Question 14

Debris Removal

Answer 14

debris removal is an additional coverage of a peroperty policy whihc stipultes to what extent the polikcy will pay for the removal or debris after a covered los to property has occured

Question 15

declatrations sheet/ page

Answer 15

the first page of the insurance contract that contains information conceringing who, what, when , amount and where is covered

Question 16

deductible

Answer 16

the amount of risk that the insured has retained

Question 17

dwelling

Answer 17

a home and more. for insurance purposes a dwelling is considered a house as well as itmes built in to the home and items attached to the home

Question 18

dwelling policy

Answer 18

a policy to cover a dwelling in which the owner does not reside or for some other reason does not qualify for homeowners coverage

Question 19

earthquake endorsement

Answer 19

coverage for extra cost in property contract to cover losses due to earthquake and volcanic eruption

Question 20

exclusiosn

Answer 20

losses not covered in apolicy

Question 21

fair rental value

Answer 21

an inderect loss tcoverage designed to offset the losses sustained by a landlord following the damage or destruction of property

Question 22

fire department service charge

Answer 22

an adiditional coverage automaticall provided in both homeowenrs and commercial property it is the payment made to the fire depeartment to put out a fire. in home owners $500 and in commerical $1000

Question 23

Floater

Answer 23

coverage avalialbe under in land marine insurance to cover personal property from more perls and with ametter method of valualtion that offered in property insurance

Question 24

forgery

Answer 24

a criminam act of fraudently making or altering a codument with the intent of depricinv others of their right, interestt or property