Section 6 Flashcards
Which of the following may be covered under the physical damage insuring agreement of a personal auto policy?
- Loss of a cd played installed in the vehicle dashboard
- Damage to the vehicle caused by an engine failure
- Theft of a CB radio
- All are covered
Loss of a cd played installed in the vehicle dashboard
Equipment installed become part of the audio
The collision coverage of a personal auto policy does not cover the following loss situations, Except:
- Large limb and branches of a tree that have fallen into the street as a result of a windstorm. The insured collides with them
- Flood water that damage the insured vehicle
- A dog belong to the neighbor is insured when the insured unintentionally strikes the dog when it runs into the street in front of the insured while he is driving the insured vehicle
- These are all included under the collision coverage section of PAP
Large limb and branches of a tree that have fallen into the street as a result of a windstorm. The insured collides with them
Pg 53
Pg 57
Which of the following coverages may you buy with a named-operator policy? @
- Liability only
- Liability, uninsured motorist, medical payments, collision, and other than collision
- Liability and uninsured motorist
- Liability, uninsured motorist, and medical payments
Liability, uninsured motorist, medical payments, collision, and other than collision
Named operator or named insured, may purchase a,b,c & d
To be covered for a hit and run accident under the uninsured motorist property damage coverage of a PAP, what is required to be provided to the insurer?
- License number of the hit and run vehicle
- Photographs identifying the hit and run vehicle
- Testimony of an eyewitness to the accident
- Legal affidavit describing the accident
License number of the hit and run vehicle
Pg 53
The PAP collision deductible is $1000, and the other-than-collision deductible is $550. How much would the insurer pay for an accident involving the overturn of one vehicle, resulting in $2000 of damages?
- $1000
- $0
- $3000
- $1,500
$1000
Overturn is part of collision and upset coverage
Car “a” is in an accident with car “b”. “A” suffers $10,000 of damage but it is determined that “a” is 25% responsible for the accident. How much would “a”
Receive under comparative negligence rules?
- $7500
- $10000
- $0
- $2,500
$7500
Pg54
Under California financial responsibility for each accident that involve serval people injured in one accident:
- $10000
- $15000
- $5000
- $30000
$30000
minimum requirement is $30000 per occurrence. Minimum bodily injury per person is $15000
When an automobile insurance policy is canceled at the request of the insured, and the insurance company keeps all earned premiums, in addition to an amount to pay for overhead expense incurred by the insurer, it is referred to as what type of cancelation?
- The flat rate type of cancelation
- The short rate type of cancelation
- The pro-rata type of cancelation
- It is none of these
The short rate type of cancelation
Definition. Pro-rata requires a refund of all unearned premium upon cancellation. Flat rate is rescission or cancellation of policy and required 100% of the premium returned
Which of the following coverages may you buy with a named non-owner liability policy? @
- Liability, uninsured motorist, medical payments, collision, and other-than-collision
- Liability, medical payments, and uninsured motorist
- Liability and uninsured motorist
- Liability only
Liability, medical payments, and uninsured motorist
If you only drive or borrowed or rented autos, physical damage (collision) is not usually available
What coverage is available under the extended non-owned liability coverage?
- Liability only
- Liability and medical payment
- Liability and physical damage
- Liability, medical payments, and uninsured motorist
Liability and medical payment
Extended non-owned liability coverage- company car is provided for personal or regular use
An insured has a personal auto policy and did not pay the initial insurance premium when it was due. Insurer cancels the policy for non-payment. How many days notice must the insurer give?
- 20 days
- 10 days
- 15 days
- 5 days
10 days
Cancellation for non payment of premium is 10 days notice
What coverages is available under the miscellaneous type vehicle endorsement?
- All coverage under the personal auto policy
- Physical damage only
- Liability and Physical damage only
- Liability only
All coverage under the personal auto policy
Pg 55
If an insured purchase an all-terrain vehicle (ATV), what endorsement can be added to the personal auto policy to insure the vehicle?
- Miscellaneous type vehicle endorsement
- ATV endorsement
- Recreational vehicle endorsement
- There is no endorsement available for this exposure
Miscellaneous type vehicle endorsement
The endorsement can cover recreational vehicle like ATVs
In the event of recovery of stolen property, which of the following is an insurer’a option when making a settlement with the insured under a personal auto policy?
- Have the insured purchaser place the auto at an auto auction
- Demand that the insured first attempted to settle with the responsible party
- Instruct the insured to repair the vehicle at a designated shop
- Return stolen property to the address shown in the policy
Return stolen property to the address shown in the policy
Insurer, after payment, may give insured a choice of money or property
The personal auto policy towing and labor endorsement pay for
- Towing and labor charges up to $1000 per year
- The cost of towing the disable car to the garage, and up two hours of labor expenses at the garage
- The cost of labor only if the labor is performed at the place of disablement
The cost of labor only if the labor is performed at the place of disablement
Pg 56
Which of the following losses would be covered under dicks personal auto policy other-than-collision coverage? @
- Someone shoots dicks car rear window while the car is parked on the street overnight
- Dicks suitcase is stolen from his car while the car is parked at the airport
- The sides and top of dicks car are damaged when it rolls over on an icy curve
- Dick locks his keys in the car, and then breaks a window to gain quick access
Someone shoots dicks car rear window while the car is parked on the street overnight
Other-than-collision covers any damage to the vehicle that is not considered a collision loss and that is not excluded by the policy
In the business of insurance, the act if concealment is defined by all the following statements, except:
- Concealment can be intentional
- Concealment can be unintentional
- Concealment is grounds for declination by the insurer
- Concealment does not occur if no inquiry is made
Concealment does not occur if no inquiry is made
Concealment is the intention to withhold or secrete material information-whether an inquiry is made or not
Where would an insured, that is in the business of importing exotic animals from Africa, most likely go to obtain insurance coverage?
- Alien insurer
- Excess and surplus lines insurer
- Foreign insurer
- State competition fund
Excess and surplus lines insurer
Imports and exports are a type of risk a surplus lines broker would handle
What else must an applicant for a fire and casualty license, life agent license, or personal lines agent license complete, in addition to pre-licensing classroom study?
- A sales training course provided by the insurance department
- A contract law course at any approved college location
- A diversity awareness course provided by the states of CA
- A 12-hour course on ethics and the CA code
A 12-hour course on ethics and the CA code
This 12 hour course is added to the 40-hour course for life or fire & casualty, or 20-hour course for personal lines, accident & health or limited automobile agents license needed
P
When is a Property and casualty agent required to inform an insured of any conditions which may be precedent to coverage regarding a personal auto policy?
- At the time of application
- At renewal
- At proposal
- At policy delivery
At the time of application
Pg 38
The state law that regulates insurer practices regarding underwriting, sales, rate-marking, and claims handling are called:
- Market conduct regulation
- Insurer policing
- Ethical standards surveillance
- Standard regulation
Market conduct regulation
The market conduct bureau conducts
Examinations of California licensed insurers claims-practices
It is a violation of the CA insurance code to act as a producer for a non-admitted carrier unless:
- It is always a violation, no matter what type of producer
- The producer is a surplus lines
Broker - The producer is an insurance solicitor
- The producer is duality licensed in at least two states
The producer is a surplus lines
Broker
Unless a person is licensed as a surplus lines broker, they may not transact any insurance on property located, or operation conducted, or on the lives of residents within the state of California with non-admitted insurers
Where do most states require insurers to file policy forms?
- The federal government insurance regulatory committee
- The independent insurance association of America
- The insurance department
- The insurance services office
The insurance department
Pg 39
What must an insurer do who accepts an application from an agent who is not specifically appointed by the insurer, and then issues a policy from that application?
- Forward to the commissioner a notice of appointment within 14 days of receipt of application
- Send the agent the appointment approval within 30 days of policy issuance
- The agent must become an employee of the company within 30 days of receiving application
- Name the agent to the list of company’s approval agents
Forward to the commissioner a notice of appointment within 14 days of receipt of application
Facts
In the state of CA, no rate will remain in effect if it is considered to be any of the following, except:
- Inadequate
- Unfairly discriminatory
- Impartial
- Excessive
Impartial
Ca. Department if insurance regulates policy rates to ensure fair, reasonable, and not discriminatory rates
A representation in an insurance contract qualifies as which of the following?
- An implied warranty
- An amendment
- An express warranty
- A policy provision
An implied warranty
Pg 49
What is required of a broker-agent before appointing an insurance solicitor?
- Must hold a notice of appointment
- Must hold a permanent license
- Must hold a certificate of insurance
- Must be a domestic insurer
Must hold a permanent license
Insurance solicitor is hired by either agents or brokers, and they must have a license before they can appoint anyone
Company that negotiates and binds ceding reinsurance on behalf of an insurer is considered:
- An insurance specialist
- A third-party administrator
- A managing general agent
- An insurance solicitor
A managing general agent
Pg 40
Insurers may purchase reinsurance for a variety of reasons. Which of the following is not a good example of the use of reinsurance? Insurer purchases reinsurance:
- For the protection from catastrophic exposures, such as hurricanes or earthquakes
- To more safety insure an exceptionally large account
- To avoid capacity problems by reducing the amount of unearned premium
- Only on the below average business submitted to them, keeping the good business for themselves
Only on the below average business submitted to them, keeping the good business for themselves
The purpose of reinsurance is to prevent insolvency, not to provide business advantages
Any person who makes a loan of money using real property as security:
- There are no current laws regarding lenders disclosing borrower’s information in California
- Shall not make available the information contained in a borrower’s fire or casualty policy if the borrower has filed a statement with the lender that they do not want the lender to disclose this information
- Shall be allowed to make available the information contained in a fire or casualty insurance policy for the purpose of soliciting either fire or casualty insurance only
- Can give out any borrowers information to a solicitor if the lender discloses its practices to the borrower at the time the loan is made
Shall not make available the information contained in a borrower’s fire or casualty policy if the borrower has filed a statement with the lender that they do not want the lender to disclose this information
Pg 41
If an insurer pays an insurer $25000 in lost wages, $45000 for physicians visits and hospital costs, and $15000 for physical therapy treatments, and later finds out that the claim was fraudulent, the insured may be fined as much as:
- $170000
- $60000
- $85000
- $150000
$170000
Punishable by up to $150000 or double the value of the fraud whichever is greater
Which of the following insurance professionals would be employed to aid an insurance broker?
- Insurance adjustor
- Managing general agent
- Underwriter
- Insurance solicitor
Insurance solicitor
A solicitor is an insurance salesperson who contacts potential customers and handles clerical responsibilities, but has no authority to execute insurance contracts
The types of transactions and insurers that a surplus lines broker is involved with is/are:
- Admitted insurers, liability insurances only
- Admitted insurers, property insurance only
- Non-admitted insurers, life and disability insurers
- Non-admitted insurers, property and casualty insurance
Non-admitted insurers, property and casualty insurance
Fact
How is an admitted insurer defined according to the California DOI?
- It is incorporated under the laws of any other jurisdiction other than state of California
- It is organized and chartered according to and under the laws of the state of California
- It transacts insurance business in all states
- It transacts insurance according to the laws of the state of California
It transacts insurance according to the laws of the state of California
Pg 42
All licensees must be appointed by the insurance companies they represent in order to sell the lines of insurance that a particular insurer may offer. Assuming that a licensed fire and casualty broker/agent has received the proper appointments, what type or types of insurance, from the following list, may this individual sell?
- Property and disability insurance
- Auto insurance only
- Auto and disability insurance only
- Auto, property insurance
Auto, property insurance
Fact
The insurance code definition of an “insurance broker” is:
- Any agent that writes more difficult to place business with the specialty insurers who have appointed him/her
- Someone employed by a fire and casualty broker-agent, receiving commissions from the employer transacting insurance with the insurers employer represents, and acting on behalf of clients
- Someone paid to transact insurance on behalf of another person, but not on behalf of the insurer
- Someone appointed to transact insurance with admitted insurers, and receiving commissions from them, but acts on behalf of the clients
Someone paid to transact insurance on behalf of another person, but not on behalf of the insurer
Test question
Under which of the following circumstances can the insurance commissioner deny the applicants on for an agents license without a hearing?
- The applicant has previously been engaged in a fraudulent activity involving insurance sales
- The applicant has had a license application denied for cause within past five year
- The applicant has failed to pass the licensing exam three times in the last two years
- The applicant has no previous experience in the insurance business
The applicant has had a license application denied for cause within past five year
Pg 43
It is vital that an insurance agent/broker fully assess, analyze, and review a particular risk in order to determine the proper insurance coverage needed. The least likely way to do this is to:
- Examine published risk date associated with the type of business I question
- Tour the business facility to watch operational procedures and processes, as well as talk to key people within organization about the company and how it operates
- Review all coverages in their current insurance contracts as well as the premiums paid
- Complete a questionnaire for the risk classification & then meet with key people in organization
Review all coverages in their current insurance contracts as well as the premiums paid
Pg 43
If an insured signs a claim form for a claim which is fraudulent, the insured may be guilty of:
- Misrepresentation
- Perjury
- Nothing, if the claim is never paid
- Obstruction of justice
Perjury
Means lying under oath
Which of the following best defines binder?
- A contract that is temporary, only oral, between the insurer and the insured
- A contract of insurance that is temporary, either oral or in writing, between insured and soliciting agent
- A contract of insurance that is temporary only in writing between the insured and insurer
- A contract of insurance, that is temporary either oral or in writing between the insured or insurer
A contract of insurance that is temporary only in writing between the insured and insurer
A binder must be in writing and considered a temporary contract
Max’s personal auto Policy (pap) has liability and collision coverage. His neighbors car has liability coverage only. Max borrows his neighbors car to go to the store and has an accident that is his fault. He damages his neighbors car and another car. Maxs pap provides:
- Liability coverage that is excess if his neighbors liability coverage. His collision coverage also applies, but on a primary basis
- Collision coverage because neighbor does not have this coverage. Liability coverage does not apply
- Collision and liability coverages on a primary basis
- Liability coverage that is excess his neighbors liability coverage. The collision coverage does not apply
Liability coverage that is excess if his neighbors liability coverage. His collision coverage also applies, but on a primary basis
Pg 57
A Personal auto policy (pap) insured’s car was a total loss when the car was stolen and wrecked. The insured has the following coverages: liability, medial payments, and “other-than-collision.” Her pap:
- Liability coverage will pay for the loss
- Medical payments will pay for hy loss
- Will not pay for this loss-no coverage
- “Other-than-collision” will pay for the loss
“Other-than-collision” will pay for the loss
Pg 57
The collision coverage of a personal auto policy covers:
- A desert sand storm pitting the car windshield
- A vandal making a deep scratch on the car with a screwdriver
- Collision coverage does not cover any of these losses
- Damage caused by the insured, driving into a fallen trees, that fell during a storm
Damage caused by the insured, driving into a fallen trees, that fell during a storm
Pg 58
Which of the following losses is not covered by either the personal auto policy collision other-than-collision coverage?
- Davids car is washed away during a flood
- Davids car is severely damaged by a storm when a sign is blown off the roof of a building, hitting his car
- David leaves his personal (non business) laptop computer in his car overnight. Car is parked in the driveway outside of his home. Computer is stolen in his car.
- Davids car is stolen when he leaves the keys in the ignition, and the doors and windows are unlocked while he runs into the grocery store
David leaves his personal (non business) laptop computer in his car overnight. Car is parked in the driveway outside of his home. Computer is stolen in his car.
This would be as homeowners loss
If an insured rents an auto while on vacation, what coverages, if any, will be available for physical damages coverage under a personal auto policy?
- The broadest coverage on any auto shown in the declaration
- The coverage of the last auto shown in the declarations
- The least coverage on any auto shown on the declarations
- No coverage available
The broadest coverage on any auto shown in the declaration
As Long as physical damage is included in the insured’s pap, it is available for rental ace
If an insured with a personal auto policy has an accident in a state with personal injury protection (pip) how does the policy respond?
- Coverage automatically is broadened to provide PIP
- PIP coverage is provided only for medical providers in that state
- Coverage remains as written
- The insured may apply for the additional PIP coverage within 10 days of the accident
Coverage automatically is broadened to provide PIP
Where available, personal injury protection includes first party benefits for the insured, including funeral costs, essential services, etc.
Newly acquired motorcycles are not automatically covered under a personal auto policy (pap) because:
- Motorcycles are too dangerous to insure
- Motorcycles cannot be insured under the PA
- Motorcycles are insured under a Homeonwers policy
- The unendorsed policy does not cover two-wheeled vehicles
The unendorsed policy does not cover two-wheeled vehicles
Pg 59
Under a personal auto policy, if a newly acquired auto is to replace the covered auto that has only liability coverage, how long does the insured have to request collision coverage? @
- 30 days
- 14 days
- 4 days
- Immediately
4 days
4 days if physical damage coverage did not apply to the original vehicle otherwise 14 days
Livery conveyance is best described as:
- Share the expense carpool
- Vehicle for hire to transport property
- Vehicle for hire to transport people
- Commercial vehicle with more than 4 wheels
Vehicle for hire to transport people
If an insured borrows a neighbors vehicle to run a personal errands, how do the policies respond in the event of an auto accident?
- The drivers policy is primary and the neighbors policy is excess
- Both policies respond on a pro-rate basis
- The neighbors policy is primary and the drivers policy is excess
- Only the neighbors policy provides coverage, there is no coverage by the drivers policy
he neighbors policy is primary and the drivers policy is excess
Pg 61
All of the following expenses are covered, in addition to the limits of liability, under coverage a of a personal auto policy, except:
- Loss of earnings to attend trials at the company’s request
- Cost of bail bonds related to a covered accident
- Premium for appeal bonds
- Pre-judgement interest
Pre judgment interest
Pg 60
The collision coverage of a. Personal auto policy covers:
- A desert sand storm pitting the car windshield
- A vandal making a deep scratch on the car with a screwdriver
- Collision coverage does not cover any of these losses
- Damage caused by the insured, driving into a fallen tree, that fell during the storm
Damage caused by the insured, driving into a fallen tree, that fell during the storm
Collision is defined an impact with another vehicle or impact with another object, such as wall, telephone pole, or upset(rolling the car over)
Which of the following losses is not covered by either the personal auto policy collision or other-than-collision coverage?
- Davids car is washed away during a flood
- Davids car is severely damaged by a storm when a sign is blown off the roof of a building, hitting his car
- David leaves his personal (non-business) laptop computer in his car overnight. Car is parked in the driveway outside of his home. Computer is stolen from his car.
- Davids car is stolen when he leaves the keys in the ignition, and the doors and windows are unlocked while he runs into the grocery store
David leaves his personal (non-business) laptop computer in his car overnight. Car is parked in the driveway outside of his home. Computer is stolen from his car.
This would be covered as a homeowners loss
Newly acquired motorcycles Are not automatically covered under a personal auto policy (pap) because:
- Motorcycles are not too dangerous to ensure
- Motorcycles cannot be insured under the pap
- Motorcycles are insured under a homeowner policy
- The unendorsed policy does not cover two-wheeled vehicles
The unendorsed policy does not cover two-wheeled vehicles
Pg 59
Under the liability Portion of an unendorsed personal auto policy, what coverage is available if the named insured is operating a company car on a regular basis?
- The broadest coverage of any autos listed in the declarations
- The financial responsibility limits
- The policy excludes this usage
- The coverage primarily operated by the names insured
The policy excludes this usage
The question states that the non-owned company car is used regularly
Which of the following events within the last three years would disqualify an individual from receiving a good driver discount?
- A not-at-fault accident resulting in the death of a passenger
- An at-fault accident involving minor bodily injury
- An at fault accident involving only property damage
- A moving violation while driving a company car during business hours
An at-fault accident involving minor bodily injury
Bodily injury is the most serious, and would cause the loss of a good driver discount
California has lower financial responsibility limits than most other states. If, randy, a California personal auto policy insured, carrying minimum limits in coverage, has an accident in a state that requires higher limits then:
- He is breaking the law of that state unless he has added the “other-state” endorsement
- The policy will provide the higher limits retroactively, but only when he has paid the difference in premiums
- The unendorsed policy does not cover the out-of-state operation of the automobile
- The policy will automatically provided the higher required limits at no extra charge
The policy will automatically provided the higher required limits at no extra charge
Fact
Jackies personal auto policy (which is unendoresed) would provide payment for which of the following?
- Expense incurred as the result of an intentionally injury caused by Jackie
- Expense of a rental car when Jackies vehicle is not drivable as the result of a collision that was not her fault
- Expense of repairing a neighbors wall, surrounding a garden, that Jackie accidentally backed through
- Expense incurred as the result of cracked windshield from a rock thrown by the tire of a truck
Expense of repairing a neighbors wall, surrounding a garden, that Jackie accidentally backed through
This is considered property damage of others and falls under coverage part a liability coverage. Choices 2&4 are covered under physical damage; choice 1 is excluded
Which is an additional benefit that is included in a DP2 that is not included in DP1?
- Debris removal
- Lawns, trees, and shrubs
- Reasonable repairs
- Fire department services
Lawns, trees, and shrubs
Part of additional coverage dp2& dp3 not dp1 which is basic
What is one way in which the HO2, HO4, and HO6 are similar?
- Perils insured against under coverage C
- The limits provided for under coverage c
- Perils insured against under coverage a
- The limits provided for under coverage b
Perils insured against under coverage C
Broad form perils in each case
The ordinance or law limitation in a homeowner policy may cause a gap in coverage in which the following situations?
- The insured’s home is damaged by fire and must be rebuilt to meet present building codes. The additional cost of complying with the codes is 50%
- A community ordinance requires dogs to be on a leash. The insured’s dog, running free in park, bites a child
- The insured has a business occupancy that is permitted by homeowners rule and does not affect his coverage. However, local community laws prohibit the occupancy unless certain approvals are obtained and fees are paid. The insured has not obtained approvals not paid fees prior to windstorm damage to home.
- A law requires all swimming pools on a residential property to be fenced and to have self-closing gates. The insured’s gates is not self-closing, and the neighbors child goes through the gate and is severely injured when he falls into the insured’s pool
The insured’s home is damaged by fire and must be rebuilt to meet present building codes. The additional cost of complying with the codes is 50%
The HO policy provides only 10% of the coverage A limit can be applied to ordinance and law losses. This is example, there remain 40% gap in coverage
Which of the following loss exposure is not covered by section II of Ron’s homeowner policy?
- Ron’s use of a riding lawnmower while he is mowing his lawn
- Ron’s register/licensed personal auto while used on his own property which includes 10 acres on undeveloped land
- Ron’s use of a motorized golf cart, while playing golf on a golf course
- Ron’s activities while rebuilding a car for fun in his garage at home. The car does not have an engine
Ron’s register/licensed personal auto while used on his own property which includes 10 acres on undeveloped land
Pg 73
What additional coverage does a dp2 have compare to a dp1?
- Debris removal
- Improvements, alterations & additions
- Personal liability
- Additional living expense
Additional living expenses
Which of the following collaspe losses would be covered under an HO3?
- Defective workmanship completed two years ago
- Known insect damage
- Weight of contents
- Earth movement from a volcanic eruption
Weight of contents
Pg 73
Which coverages are typically provided in a boat owners policy?
- Physical damage, liability, medical payment
- Property, liability, and medical payment
- Hull, running down, and protection & indemnity
- Hull and collision.
Physical damage, liability, medical payment
Boat owners policy similar to an automobile policy
The watercraft endorsement on a homeowners policy extends coverage for:
- Liability coverage for watercraft listed on the schedule
- Liability coverage for all owned watercraft
- Physical damage and liability coverage for all owned watercraft
- Physical damage and liability for watercraft listed on the schedule
Liability coverage for watercraft listed on the schedule
Liability provided for scheduled watercraft only
Which is a valid reason for an applicant to purchase an HO3 policy instead of a dwelling policy?
- The property is a six-unit building with the owner occupying one of the units
- The insured does not want to have personal liability coverage
- The insured desires broader coverage
- The insured wants to pay a lower premium
The insured desires broader coverage
Ho3 covers more than standard dwelling
A home is damaged two hours after the earthquake, first by fire, then by fuel pipes bursting and causing an explosion. Under an HO3 form:
- There is no coverage unless the homeowner has made an earthquake coverage endorsement a part of the policy
- There is coverage, but only for the damage caused by the fire and explosion
- The policy covers all of the damage since explosion is an insured peril
- The policy does not cover the damage since the HO3 provides only named peril coverage
There is coverage, but only for the damage caused by the fire and explosion
The damage ensues from the earthquake
Which of the following perils is covered by a “causes of loss-basic form”? @
- Riot
- War
- Ordinance or law
- Government action
Riot
Riot is a coverage of the commercial basic form
How are the HO3 and the HO5 similar?
- Both provide open peril coverage for the dwelling
- Both provide placement cost coverage for contents
- Both provide named peril coverage for personal property
- Both are designed to cover condominiums
Both provide open peril coverage for the dwelling
They both provide the same all risk coverage for the dwelling. The differences is that the HO5 upgrades the personal property coverage to be all-risk as well
Which of the items if real property under HO3 are valued on an actual value basis?
- Exterior paint
- Roofing
- Built in appliances
- Wallpaper
Built in applicances
Could be considered personal property
Grace has a HO policy that includes section I coverages ‘A,B,C’ these coverages, a, and c provide coverages for:
- Dwelling other structures and personal property
- Medical payments, personal liability, and damage to property of others
- Dwelling, personal property and loss of use
- Dwelling additional living expenses and loss of use
Dwelling other structures and personal property
Pg 76
What is the primary differences between an HO2 and HO3 policy?
- The policy territory
- The property covered
- The perils insured against
- The liability coverage
The perils insured against
Pg 76
What is the primary difference between an HO3 and HO5?
- Coverage D limits
- Coverage C broad named perils
- Coverage A property
- Coverage A and B perils
Coverage C broad named perils
Coverage c is personal property coverage
The ho5 upgrades the personal property co enrage to be open perils
What perils are insured against under the additional coverages-property removed of a homeowners policy?
- Basic form perils
- Broad form perils
- Perils of transportation
- All perils
All perils
Pg 78
Which exclusion in the causes if loss-special form excludes coverage for mudflow?
- Government action
- Water (flood)
- Utility service
- Ordinance or law
Water (flood)
Fact
Under a building and personal property coverage form, if the insured building has been vacant for more than 60 consecutive days what effect will this have on a vandalism loss?
- The amount of loss will be reduced by 15%
- The amount of the loss will be reduced by 60%
- The loss is excluded
- There is no effect
The loss is excluded
Pg 79
What is the primary Difference between a HO2 and a HO4 policy ?
- Description of insured premises
- Property insured under coverage A
- Inside limits of liability for specified personal property
- Perils insured against under coverage C
Property insured under coverage A
Pg 79
