Property, Casualty, and Liability Insurance

Question 1

Coverage A: Dwelling

Answer 1

Insures dwelling and structures attached to it
- land is excluded

Question 2

Coverage B: Other Structures

Answer 2

set apart from dwelling by clear space

Question 3

Coverage C: Personal Property

Answer 3

covered anywhere in the world
- sublimits
- exclusions: animals, birds, fish, motor vehicle, aircraft, property of roomers and boarders, rented to others

Question 4

Coverage D: Loss of Use

Answer 4

additional living expenses arising from damage of property

Question 5

Coverage E: Personal Liability

Answer 5

insured is legally liable arising out of BI/PD
company agrees to defend insured and has right to settle any suit

Question 6

Personal Liability Exclusions

Answer 6

• business/ professional services
• motorized land vehicles (besides rec or gold carts)
• watercraft (besides less than 50 horsepower or 26 feet)
• aircraft
• BI for someone eligible for workers comp

Question 7

Coverage F: Medical payments

Answer 7

limited amounts per person for medial expenses for people other than insured

Question 8

Basic perils

Answer 8

WHARVVES/FLT
- windstorm
- hail
- aircraft
- riot
- vandalism
- vehicles
- explosion
- smoke
- fire
- lightning
- theft

Question 9

Broad perils

Answer 9

basic plus RAFF
- rupture of system
- artificially generated electricity
- falling objects
- freezing plumbing

Question 10

Open perils

Answer 10

• any perils except those excluded

Question 11

Homeowner exclusions

Answer 11

OPENN WIF
- ordinance of law
- power failure
- earthquake
- negligent
- nuclear hazard
- war
- intentional loss
- flood

Question 12

HO -1 / HO -8

Answer 12

• Basic (A,B,C,D)
• same for HO8 but for older home

Question 13

HO - 2

Answer 13

• Broad (A,B,C,D)

Question 14

HO - 3

Answer 14

• Open (A, B (10%), D (30%))
• Broad (C (50%) )

Question 15

HO - 5 (HO3 + HO15)

Answer 15

Open (A, B (10%) , C (50%) , D (30%))

Question 16

HO - 4

Answer 16

renters
- Broad (C, D (30%))

Question 17

HO- 6

Answer 17

Condo
- Open (C)
- Broad (D (50%)
- maybe A and B for carpet and cabinets

Question 18

Scheduled personal property endorsement (floater)

Answer 18

normally limitations on personal property that is easily stolen
cover valuables with floater - open peril

Question 19

Actual Cash Value (ACV)

Answer 19

replacement - depreciation
- original cost is immaterial
- dwelling typically replacement cost basis
- contents typically ACV

Question 20

Property loss calculation

Answer 20

[(insurance carried / insurance required) * Loss ] - deductible = amount paid by insurance

replacement cost * coinsurance percentage (80% or 90%) = insurance required

Question 21

PAP coverage

Answer 21

• Part A: liability
• Part B: medical
• Part C: uninsured motorist
• Part D: damage to auto (collision and other than collision)

Question 22

PAP eligibility

Answer 22

• can be written on eligible vechicles owned or leased by individual or spouse living in same household
• business not insured

Question 23

Covered auto

Answer 23

• any vehicle listed in policy declaration
• also newly acquired, trailers, temporary substitute vehicles

Question 24

Newly acquired auto

Answer 24

• if replaced only auto, covered A, B, C
• no automatic coverage for D unless company is notified within 14 days of acquisition of new car

Question 25

Temporary substitute vehicle

Answer 25

• covers any auto being used while covered auto is out for repairs, etc

Question 26

Covered Drivers

Answer 26

• named insured
  -family member living in same household
• person using auto with permission
• spouse of named insured living in house

Question 27

Spouse not resident of household

Answer 27

still covered until earliest of
- end of 90 days following change of residency
-effective date for spouses own policy
- end of policy period

Question 28

Auto - Part A - Liability

Answer 28

BI/PD
Single Limit
- one amount applies to all BI/PD from one accident
Split Limits
- separate limits to each accident
- first limit: BI to one person
- second limit: BI for all claims
- third limit: aggregate PD
100/300/500

Question 29

Auto - Part B - Medical Pay

Answer 29

• medical expenses of insured rendered within 3 yrs of date of accident

Question 30

Individuals covered for med pay

Answer 30

• insured, spouse, family while in a car or walking
• anyone using covered auto

Question 31

Auto Part D other than collision

Answer 31

• breakage of glass
• loss caused by missiles
• falling objects
• fire, theft, larceny
• flood
• earthquake
• windstorm, hail
• vandalism, riot
• contact with bird or animal
• explosion

Question 32

Auto - Part D - Damage

Answer 32

• collision : impact with another car
• other than collision : open perils (with exclusions)

Question 33

Claims Adjustment Procedure for Property Insurance

Answer 33

1. Furnish notice to insurer
2. Investigate claim
3. file proof of loss
4. pay or deny claim

Question 34

Individuals covered under auto part C

Answer 34

• insured, spouse, family
• anyone in covered auto
• any insured previously mentioned

Question 35

Options to Insurer to Settle

Answer 35

1. Replacement Option: may repair or replace damaged property with like kind ot quality instead of cash
2. Abandonment or salvage: must surrender ownership of lost/damaged property so total loss can be claimed
3. Pair or set: may repair or replace any part to restore a pair or set to its value before loss or pay difference

Question 36

Auto - Part C - Uninsured

Answer 36

• covers medical expenses, lost wages, pain and suffering, does not include punitive or exemplary damages

Question 37

Business Owners Policy (BOP)

Answer 37

small to medium businesses
provides real property, contents, liability
professional liability is excluded

Question 38

Personal Property Floater

Answer 38

provide open perils for personal property