Test

Question 1

Insurable Interest

Answer 1

Any financial interest in property when damage or destruction to the property would result in financial loss to the owner or party with interest

Question 2

For insurable interest to exist:

Answer 2

• person have such an interest in the properrty at the time of the loss
• there must exsit a legit financial interest in preserving the property from loss
• no potential gain due to insurance

Question 3

Dwelling Insurance Extended Coverage

Answer 3

WE CRASH RV's
Windstorm
Explosion
Civil Commotion
Riot
Aircraft
Smoke
Hail
Riot Attending Strike
Vehicles
Volcanic Action

Question 4

Hostile Fire

Answer 4

Fire not started intentionally or a fire that has spread beyond the place intended. i.e. grease fire

Question 5

Friendly Fire

Answer 5

A fire contained in the place intended. i.e. fireplace

Question 6

Fire

Answer 6

Rapid oxidation accompanied by either a flame or glow

Question 7

Coverage A -Dwelling

Answer 7

Includes:

• Dwelling structure, either owner or non-owner occupied
• Permanently installed property i.e. central air
• Attached structires i.e. attached garage
• Materials and suppoles on the residence premises used in construction or repair of the dwelling
• Outdoor building equipment used to service the premises

Question 8

Coverage B - Other Structures

Answer 8

Applies to structures on the residence premises detached from the dwelling by a clear space.
Excludes fences, electrical wiring, property used for commercial purposes, farmin, manufacturing or rented to someone other than the dwelling tenant i.e. pool house
Limit is 10% of Coverage A
Not an additional amount of insurance on DP-1 but is additional amount on DP-2 and DP-3.

Question 9

Coverage C - Personal Property

Answer 9

Personal property of the insured
The insured’s guest or servants only on the described premises. NOT property of roomers and boarders
If personal property is removed to a newly acquired principal residence, the property is covered pro-rata at the two locations for 30 days

Question 10

Personal Property NOT covered in DP 1, 2 or 3

Answer 10

Watercraft other than canoes
Data on a computer
Accounts, bank notes, bills, coin, currency etc
Credit cards
Animals, birds or fish
CD Players from vehicle
Motor vehicles other than motorized equipment used to maintain or service the premises
Aircraft

Question 11

Coverage D -Fair Rental Value

Answer 11

if part of the covered residence that has been rented or leased to others becomes uninhibitable due to covered loss, the contract will pay the fair rental value.
10% of Cov. A is automatically included
THis is an additional amount on DP-2 and 3

Question 12

Coverage E - Additional Living Expense

Answer 12

If residence becomes unihibitable due to a covered loss and insured must move out during repairs the contract will pay necessary increased expense incurred by insured.
Limit is 10% of Cov A
Applies automatically only to DP-2 and 3 and is an endorsement for DP-1.

Question 13

Suit against insurer

Answer 13

must be brought within one year after the date of loss, but only after all conditions are met

Question 14

Death of insured

Answer 14

policy will transfer to legal representative

Question 15

Loss payment

Answer 15

condition states that payment of the loss will be made within 30 days after receiving the insured’s proof of loss

Question 16

Nuclear Hazard Clause

Answer 16

losses caused by a nuclear hazard will not be considered losses by fire, explosion, or smoke

Question 17

Waiver or change of policy provisions

Answer 17

must be in writing by the insurance company to be valid

Question 18

Volcano Eruption Period

Answer 18

if one or more volcanic eruptions occur within a 72 hour period, this will be considered as one eruption

Question 19

Dwelling Policies Exclude the Following:

Answer 19

Ordinance or law (LA provisions provide up to 10% of the dwelling amount. Anything above that amount is excluded)
Earth movement
Water damage
Power interruption
War
Nuclear Hazard
Intentional Loss (losses caused by the insured or by someone else at the insured’s direction. i.e. burning one’s property)

Question 20

Three perils covered under SFP

Answer 20

Fire, Lightning, internal explosion

Question 21

Lightning

Answer 21

Covers electricity produced in the atmosphere by natural causes. i.e. surge protection, hole in the roof as a result of being struck

Question 22

Internal Explosion

Answer 22

Covers explosions within fired containers, like furnaces or hot water heaters within a building

Question 23

Windstorm and Hail

Answer 23

do not include damage caused by cold weather, ice, snow, frost or sleet whether there is wind or not. unless rain, snow, sand or dust enters a building through openings caused by wind or hail, the loss is not covered.

Question 24

Properties NOT covered against hail or windstorm

Answer 24

Windmills
Crop silos/contents
Metal smokestacks
Crop plants, lawn trees, awnings, signs, radio/tv towers

Question 25

Explosion

Answer 25

covers external explosions except those of steam boilers, pipes, turbines or engines. i.e. hot water heater

Question 26

Losses not considered to eb explosions

Answer 26

Shockwaves from aircraft sonic boom
electric arching
rupture/bursting of pressure relief devices or water pipes
rupture/bursting from expansion or swelling caused by water

Question 27

Civil commotion, riot, and riot attending strike

Answer 27

covers acts including pilferage, looting, and employees on strike during and at the location of where riots occur

Question 28

Exlusions under CCRRAS

Answer 28

Changes in temperature i.e power goes out and ice cream melts
Interrupting operations

Question 29

Aircraft and vehicle coverage

Answer 29

Covers losses resulting from actual physical contact from an aircraft or vehicle to the covered property. Also covers damage caused by objects falling from airplanes

Question 30

Exclusions from A&VC

Answer 30

Damage caused by a vehicle owned or operated by the insured or tenant of the insured
damage to fences, driveways, walks, lawns, trees
damage to the vehicle or aircraft or anything inside them

Question 31

Smoke

Answer 31

Covered if the damage is sudden and accidental, excluding smoke from agricultural smudging or industrial operations

Question 32

Volcanic Actions

Answer 32

one or more volcanic eruptions within a 72 hour period are considered as one eruption

Question 33

Vandalism and Malicious Mischief (V&MM)

Answer 33

Provides coverage for willful and malicious destruction or damage to property

Question 34

V&MM excludes

Answer 34

glass
pilferage, theft burglary and larceny EXCEPT for the damage buglars cause when gaining entry to or leaving the building
Buildings under construction are not considered vacant. the vacancy but not unoccupancy, restriction applies to homes

Question 35

To qualify for a dwelling

Answer 35

it must have no more than 5 boarders
cannot contain more than 4 family units
excludes farms
Permanent mobile homes qualify on basic form only. usually written on a mobile home policy

Question 36

Debris removal

Answer 36

pays for the expense of removing debris resulting from a property loss to covered property. Reduces dwelling amount

Question 37

Property removed

Answer 37

Covers loss to property taht occurs while the property is being removed to protect it from any peril for 5 days on the DP-1 and 30 days for DP-2 and 3

Question 38

Trees Shrubs and Other Plants

Answer 38

Insures lawns, shrubs, trees and plants outside the building but only against specified perils. Fire, lightning, explosion, riot and commotion, aircraft, vehicles not owned by insured, V&MM. 5% coverage A and no more than $500 per plant. No coverage for commercial plants. Only applies to DP-2 and 3

Question 39

Collapse

Answer 39

Due to insured perils in coverage c. Also covers collapse due to: hidden decay, hidden insect or vermin damage, weight of contents, people or animals, eight of rain on roof, defective materials in construction but only while under construction. Only applies to DP-2 and 3

Question 40

Resonable repairs

Answer 40

Coverage pays for the reasonable costs of the insured to make necessary repairs to protect property from further damage following a covered loss. Reduces coverage A limit

Question 41

Improvement, alterations, and additions

Answer 41

provides coverage for insureds who are tenants for improvements or alterations to the dwelling made at the insured tenants expense for up to 10% of the coverage C amount.

Question 42

Ordinance of Law

Answer 42

if the structure has to be built back to code 10% of coverage A

Question 43

Fire department Service Charge

Answer 43

Policy pays up to $500 for fire department charges incurred when the fire department is called to save or protect covered property from a peril insured against or as required by ordinance. No deductible applies.

Question 44

Worldwide Coverage

Answer 44

provides 10% of coverage c amount for personal property while it is located anywhere in the world

Question 45

Glass or Safety Glazing Material

Answer 45

Covers glass breakage in a covered building also the cost of replacing it with a safety glaze if required by ordinance or law.