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Insurance > Types of Property Policies > Flashcards

Types of Property Policies Flashcards

1
Q

What type of property can be covered under Inland Marine insurance?

A

Any type of property that is portable on land, as well as means of transportation and communication

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2
Q

Which dwelling coverage form(s) will pay for the replacement cost of a dwelling?

A

DP2 (Broad) an DP3 (Special)

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3
Q

Assuming the insurer and the insured are on the amount payable for a loss covered under a dwelling policy, how soon after receiving the proof of loss must the insurer pay the claim?

A

60 days

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4
Q

What are the coverage parts that may be included in a commercial package policy (CPP)

A

Commercial property, general liability, crime, equipment breakdown, auto, inland marine, and farm

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5
Q

Replacement cost average is provided in both the broad and special form dwelling policies when the amount of insurance on the dwelling is what percentage?

A

At least 80% of the replacement cost

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6
Q

What are some of the types of businesses that are excluded from coverage under a Businessowners policy?

A

Auto sales and servicing, large banks, bars and grills, places of amusement, and manufacturers

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7
Q

What is the name for policy endorsements that may apply to more than one coverage part?

A

Interline endorsements

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8
Q

What type of coverage is included in Homeowners policies, but is not available in Dwelling policies?

A

Liability coverage

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9
Q

An insured’s house becomes uninhabitable due to damage by a fire. As a result, the insured has to rent an apartment until the repairs are made. Which type of coverage under the dwelling policy will pay for the expense of renting the apartment?

A

Coverage E - Additional Living Expenses

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10
Q

When will damage to the interior of the building be covered under the falling objects peril in the broad form of the dwelling policy?

A

Only if the interior damage is a direct result of exterior damages from a falling object

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11
Q

Losses caused by vandalism and malicious mischief are excluded from coverage if a dwelling has been vacant for how many days?

A

60 days

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12
Q

When other insurance is written on the same basis as a Commercial Property policy, what is the insurer obligated to cover?

A

A share of the loss

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13
Q

What are additional coverages available in homeowners policies without additional premiums? (name several)

A

Debris removal, lawns/plants/shrubs, and trees, removal, reasonable repairs, and fire department service charge

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14
Q

Why does the HO-4 form not provide dwelling coverage?

A

HO-4 is written for a tenant residing in a rented dwelling; the tenant does not own the dwelling.

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15
Q

What is the purpose of interline endorsements in commercial package policies (CPPs)?

A

They eliminate redundancy and minimize the number of other policy endorsements.

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16
Q

Under what conditions can broad theft coverage be added to a dwelling policy?

A

If the insured is the owner-occupant of the dwelling

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17
Q

In general, what do Homeowners policies cover?

A

Dwellings used primarily as private residences

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18
Q

When can an insured cancel a Businessowners policy?

A

At any time by mailing a written notice of cancellation

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19
Q

What HO form covers condominium unit owners

A

HO-6 (Condominium unit owners)

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20
Q

When a dwelling policy is cancelled for nonpayment of premium, the insurer must give notice within how many days of the cancellation?

A

10 days

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21
Q

Which dwelling policy coverage will provide protection for contents damages by fire in an insured dwelling?

A

Coverage C - Personal Property

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22
Q

What is mysterious disappearance?

A

Misplacement or loss of property without knowledge as to the location, time and cause of the loss

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23
Q

What type of policy is a Businessowners policy?

A

Prepackaged, stand-alone policy

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24
Q

What are the 5 coverages of dwelling policies?

A

Coverage A: Dwelling // Coverage B: other structure // Coverage C: Personal Property // Coverage D: Fair Rental Value // Coverage E: Additional living expenses

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25
Q

An insured with a Homeowners policy has removed property from the insured location to protect it from loss that could be caused by a covered peril. The removal coverage applies for how many days?

A

30 days

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26
Q

What do dwelling policies insure?

A

Dwelling only, contents only, or both dwelling and contents

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27
Q

What are some of the exclusions from coverage in all of the Homeowners forms?

A

Land, structures used for business purposes, animals/birds/fish, aircraft, rented property, electronic data and motor vehicles.

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28
Q

Where can National Flood Insurance be issues?

A

Only in participating, flood-prone areas

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29
Q

What are the 2 types of Utility Services endorsements available in Businessowners policies?

A

Utility Services – Direct Damages, and Utility Services – Time Element

30
Q

According to the liberalization condition, if an insurer makes a change to broaden coverage in newly issued dwelling policies, how will that change affect policies already in force?

A

The change will apply automatically.

31
Q

Under coverage C of an HO-3 policy, what is the amount of insurance provided for personal property?

A

At least 50% of the coverage A limit (this applies to all policies except for HO-4 and HO-6)

32
Q

Commercial property coverage can be written with one of three causes of loss forms. What are they?

A

Basic, Broad, and Special

33
Q

If 3 volcanic eruptions happen within 48 hours, and each contributes to property damage, how many deductibles will apply in the dwelling policy?

A

1 deductible (all instances of volcanic eruptions that occur within a 72-hour period are considered 1 occurrence)

34
Q

In Commercial Inland Marine policies, who transports the property of anyone who hires them?

A

Common Carriers

35
Q

What is the maximum number of units in residential dwellings insurable by a Dwelling policy?

A

Up to 4 units

36
Q

What type of property would be covered under the Builder’s Risk Coverage Form?

A

The building, temporary structures, foundations, fixtures, equipment, and materials and supplies within 100 feet of the premises.

37
Q

DP-3 (Special) is an open-peril form. What does that mean?

A

All perils are insured unless specifically excluded

38
Q

In dwelling policies, within how many years of a loss may an insured bring a lawsuit against the insurer?

A

2 years

39
Q

What businesses qualify for coverage under a businessowners policy?

A

small to medium size businesses

40
Q

Which dwelling policy coverage will insure a garage not attached to the primary insured dwelling?

A

Coverage B - Other structures

41
Q

What HO form covers a historic home with replacement cost more than the market value?

A

HO-8 (modified homeowners)

42
Q

What are the major coverages included in a Homeowners policy?

A

Coverage A - Dweling, Coverage B - Other Structures, Coverage C - Personal Property, and Coverage D - Loss of Use

43
Q

Which of the 3 DP forms provides the most limited coverage?

A

DP-1 (Basic)

44
Q

What is the limit that the insurer will pay for all losses that occur during a policy period?

A

Aggregate limit

45
Q

In dwelling policies, what is the purpose of the automatic increase in insurance endorsement that increases the amount of insurance by an annual percentage?

A

To offset the effects of inflation

46
Q

Under Coverage C - Personal Property in the dwelling policy, when will a guest property be covered?

A

Only when the property is at the insured location

47
Q

How are the dwelling and other structures covered in an HO-3 policy form?

A

On an open-peril basis

48
Q

When would theft of property of guests and residence employees be covered under the HO-8 form?

A

Only while on the insured premises

49
Q

How is the coverage usually written for HO-8 forms?

A

For the market value of the property

50
Q

A businessowners policy is sold as a package, what does that mean?

A

coverage includes both property and liability

51
Q

In dwelling policies, any volcanic activity will be considered part of one occurrence if it all happens within how many hours?

A

72 hours

52
Q

What are the 3 types of coverage available in dwelling policies?

A

Basic, Broad, and Special

53
Q

Which dwelling form is called the Broad form?

A

DP-2

54
Q

What is the purpose of the National Flood Program (NFIP)?

A

To fill the gap in flood coverage left by private insurers

55
Q

Which dwelling form provides open peril coverage on the building?

A

DP-3 (Special)

56
Q

What does form HO-5 cover?

A

The dwelling and other structures, as well as contents and personal property

57
Q

In order for forms HO-2, HO-3, HO-5 to provide coverage, a dwelling must be insured for at least what percentage of replacement cost?

A

80%

58
Q

What HO form insures a tenant living in an apartment?

A

HO-4 (Tenant broad form)

59
Q

In Commercial Package Policies (CPPs), who may cancel the policy in writing and make changes to the policy with the consent of the insurer?

A

First-name Insured

60
Q

How many owner-occupied residences per covered home are allowed by Homeowners policies?

A

An HO policy may insure a property that has 1- to 4- family owner occupied residences

61
Q

What are the 2 liability coverages included in Homeowners policy forms?

A

Coverage E - Personal liability, and Coverage F- medical Payments to others

62
Q

What type of policy consists of the declarations, conditions, endorsements, and other attachments applicable to a single line of insurance?

A

Monoline

63
Q

What would be considered a single accident in Equipment Breakdown coverage?

A

All accidents at a single location, at the same time, by the same cause

64
Q

What homeowners policy form is known as contents broad form?

A

HO-4 contents broad form

65
Q

What Homeowner Policy form is known as a special form?

A

HO-3 Special Form

66
Q

What are extended covered perils on a basic Dwelling policy?

A

Windstorm or hail, explosions, smoke, aircraft and vehicles, riot or civil commotion, volcanic eruption, and vandalism and malicious mischief

67
Q

What components make up a Commercial Policy?

A

Policy cover; policy declarations; interlines endorsements; lines of insurance declaration pages; lines of insurance coverage forms; common policy conditions; lines of insurance conditions; causes of loss forms; and endorsements

68
Q

A basic dwelling policy automatically provides coverage against what?

A

Fire, lightning, and internal explosions

69
Q

A businessowners policy is mostly similar to what other insurance form?

A

Homeowners

70
Q

What are some of the exclusions found in all 3 dwelling forms?

A

Earth movement, water damages, power failure, neglect, war, nuclear hazard, intentional loss, freezing of plumbing, ordinance or law, and government action

Insurance (3 decks)

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