property and liability insurance

Question 1

what are the three basic forms of coverage offered by homeowners policies?

Answer 1

basic coverage
broad coverage
open coverage

Question 2

what is basic coverage?

Answer 2

protects the homeowner from losses associated with 12 named perils:
- fire
- vehicles (damage caused by vehicles)
- lightning
- smoke
- windstorm
- vandalism or malicious mischief
- hail
- explosions
- riots or civil commotion
- theft
- aircraft
- volcanic eruptions

Question 3

what is broad coverage?

Answer 3

provides protection from losses associated with 18 named perils
- 12 basic perils
PLUS
- falling objects
- the weight of ice, snow, or sleet
- accidental discharge or overflow of water or steam
- sudden and accidental cracking, burning and bulging of appliances
- freezing of plumbing, heating, air conditioning, fire sprinkler system or appliance
- sudden and accidental damage from artificially generated electrical currents

Question 4

what is open perils coverage?

Answer 4

provides protection from losses associated with all perils, except those that are specifically excluded

Question 5

what are some perils that are generally excluded from most homeowners policies?

Answer 5

• earthquake/mudslide/sink hole
• ordinance or law regulating the construction, repair or demolition of a building or structure
• damage from rising water
• war
• nuclear hazards
• power failure caused by an uninsured peril
  -intentional acts
  -neglect

Question 6

What is covered in Section 1, Coverage A?

Answer 6

dwelling

Question 7

What is covered in Section 1, Coverage B?

Answer 7

other structures

Question 8

What is covered in Section 1, Coverage C?

Answer 8

personal property

Question 9

What is covered in Section 1, Coverage D?

Answer 9

loss of use

Question 10

What is covered in Section 2, Coverage E?

Answer 10

Personal Liability

Question 11

What is covered in Section 2, Coverage F?

Answer 11

medical payments to others

Question 12

What is HO-2 Broad Form?

Answer 12

provides coverage on a broad perils basis aka 18 named perils

Question 13

What is HO-3 Special Form?

Answer 13

provides coverage on an “open perils” basis
(personal property is still provided on a named perils basis)

Question 14

What is HO-4 Renters Policy?

Answer 14

provides coverage for renters and tenants
-does not cover dwellings or other structures
-provides personal liability coverage
-provides coverage for personal contents on a broad perils basis
-provides for loss of use of the premise

Question 15

What is HO-5 Comprehensive Form?

Answer 15

provides coverage on an “open perils” basis
- very similar to HO-3 with one major change - HO-5 provides personal property protection on an open perils basis

Question 16

What is HO-6 Condominium Owners Form?

Answer 16

provides coverage for condos
- coverage for inside structure of their unit and all of its contents
- broad perils coverage
- does not provide building coverage other than for additions and alterations

Question 17

What is HO-8 Modified Coverage form?

Answer 17

provides repair cost coverage for damage to property
- provides functional replacement cost coverage
- typically insures older homes that may be quite expensive to repair if the insurance is required to use original construction materials and workmanship

Question 18

What is covered in automobile insurance, part A?

Answer 18

liability coverage

Question 19

What is covered in automobile insurance, part B?

Answer 19

medical payments coverage

Question 20

What is covered in automobile insurance, part C?

Answer 20

uninsured motorist coverage

Question 21

What is covered in automobile insurance, part D?

Answer 21

coverage for damage to the insured’s automobile

Question 22

What is covered in automobile insurance, part E?

Answer 22

duties after an accident or loss

Question 23

What is covered in automobile insurance, part F?

Answer 23

general provisions

Question 24

a split limit policy (50/100/50)

Answer 24

a policy where the liability for bodily injury per person, bodily injury per accident and property damage are all separately stated

50k of bodily injury coverage per person
100k of bodily injury coverage per accident
50k of property damage coverage

Question 25

Liability insurance covers ______ but not __________ or __________

Answer 25

covers torts (civil wrongs) but not breaches of contract or criminal offenses

Question 26

what 3 torts are generally covered in liability insurance?

Answer 26

intentional interference
strict and absolute liability
negligence

Question 27

what is intentional interference?

Answer 27

an intentional act committed against another that causes injury

Question 28

what is strict and absolute liability?

Answer 28

occurs as a result of legislation in which one party is held legally liable regardless of who is responsible for the injury (think workers compensation)

Question 29

what is negligence?

Answer 29

an act or failure to act with appropriate care and bodily injury or property damage results from such action or inaction

Question 30

what does “res ispa loquitur” mean?

Answer 30

the act speaks for itself

Question 31

what is a PLUP?

Answer 31

coverage that gives additional levels of liability insurance after a personal auto or homeowners policy