SFP and DPs Flashcards
What perils are covered in SFP home policy?
FLR- Fire, lightning, and removal
On an SFP policy, how long does the insured have for removal (or storage costs) to be covered?
5 days
Should you or anyone you know ever pay money for a SFP policy?
Hell no.
Is theft covered in any circumstance under an SFP policy?
ONLY if the property is stolen during the 5 day removal (storage) coverage or while in transit to or from the storage site.
In North Carolina (and in general practice), what is the standard inception time (start time) of new insurance policies and expiration times of expiring or cancelled policies?
12:01 AM
How are SFP policies valued in the case of a loss?
By actual cash value (replacement cost-depreciation)
What is Pro-rata liability?
If the insured somehow is covered for the same loss under two different companies policies.
How is pro-rata liability determined (what is the formula)?
Insurer A limit of liability/(insurer A limit + insurer B limit)= insurer A’s percentage of liabilty. This is multiplied by the amount of loss and equals insurer A’s fiscal responsibilty.
What is the pro-rata amounts owed by two insurance companies if company A insures the client at $150000 and company B’s limit is $100000. The insured’s loss was $100000.
Company A- $60000, company B- $40000
Who determines what amount ACV is in a loss?
An appraiser.
What are the important steps required to be taken by an insured after a loss?
Provide the insurer with an immediate written notice of loss, protect the property from further damage, provide a list of inventory damaged or otherwise and values of said items.
What type of homes are normally covered under dwelling policies?
Non-owner occupied; usually rented, but potentially used for small service based business.
What is the only type of home policy that can be written for a mobile home?
DP-1
What are the 5 coverages of a dwelling policy?
A- Dwelling (actual cost of home reconstruction); B- other structures; C- personal property; D- loss of fair rental value; E- additional living expense
What two coverages on a dwelling policy are NOT subject to a deductible?
D and E
What year would you guess these in class videos were made?
I’m going with 2006
How long are the removal times for DP-1, DP-2, and DP-3? hint- DP-1 is different
DP-2 and DP-3, 30 days; DP-1, 5 days
What are the key differences in a DP-1 policy vs. DP-2&3 in terms of payout if there was a loss? hint- the differences are for coverage B, D, and E.
Coverage B and D are not paid out in addition to coverage A, they are paid out from coverage A (see table on pg.35) Coverage E is not included in a DP-1 policy.
What 3 coverages are included on a DP-2&3 policy but not a DP-1?
Lawns, trees, and shrubs; collapse of the building; breakage of glass or safety glazing materials.
DP-1 is what kind of policy?
Named peril OR basic form
What amount of personal property is covered in a worldwide personal property claim?
10% of coverage C (personal property)
What two perils are never covered in a home policy?
Earthquake and flood
DP-2 is what kind of policy?
named peril OR broad form
How many cups of coffee do I drink in a day?
Not enough. Never enough!
What perils does a DP-1 policy cover?
FLI- Fire, lightning, and internal explosion.
What extended coverages can one add to a DP-1? hint, its a long acronym…
REV CV SHAW- Riot, explosion, vehicles, civil commotion, volcanic eruption, smoke damage, hail, aircraft, windstorm
What perils does a DP-2 (Broad form) policy cover?
FLI, EC (REVCVSHAW), VMM, and 7 others- damaged caused by burglars, damage caused by meteorites, damage caused by weight of ice, snow, or sleet, accidental discharge of steam, sudden tearing or cracking of a steam or hot water system, freezing of plumbing.
What does VMM stand for?
Vandalism and malicious mischief (but not fun mischief)
What kind of policy is a DP-3?
open peril OR special form
What two exclusions were noted as important to know for a DP-3 policy? (there are 10 listed in the book)
Freezing of plumbing while the building is vacant, and theft to the dwelling while under construction.
How many days notice of cancellation does an insurer need to give an insured in the case of non-payment of premium?
10
How many days notice of cancellation does an insurer need to give an insured in the case of non-renewal?
30
How many days notice of cancellation does an insurer need to give an insured in the case of non-payment of premium after 60 days of the policy taking effect?
30
What coverage is missing from SFP and all DP policies that would always be included on an HO policy? (not including loss of use)
Liability
What does section II refer to?
Liability coverage
