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Home & Life Insurance > Types of Property Policies > Flashcards

Types of Property Policies Flashcards

1
Q

What are Commercial Lines?

A

Types of insurance that pertains to business, mercantile, or manufacturing establishments

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2
Q

The relinquishing of insured property into the hands of another, or into the possession of no one in particular

A

Abandonment

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3
Q

What is a boarder?

A

A person who lives with someone else for an agreed upon price, usually for a considerable amount of time

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4
Q

Breaking or failing to observe a law or agreement (1 word)

A

Breach(ing)

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5
Q

Also known as fraudulent imitation, forgery (1 word)

A

Counterfeit

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6
Q

Remains of anything broken down or destroyed

A

Debris

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7
Q

What is direct damage?

A

Physical damage to property that results from the inability to use the damaged property

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8
Q

Something occurring as a minor accompaniment to something else

A

Incidental

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9
Q

Minor uses that are accessory to or support the predominant occupancy (piano teacher giving lessons in home)

A

Incidental occupancy

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10
Q

Internal cause of property loss or damage due to the very nature of the insured property (metal rusting or produce spoiling)

A

Inherent vice

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11
Q

Define ‘mercantile’

A

Relating to trade or commerce; commercial

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12
Q

Define a ‘monoline’ policy

A

A policy that covers one type of insurance; for ex. worker’s compensation, or commercial auto

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13
Q

A law that MUST be complied with, also known as an… (1 word)

A

Ordinance

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14
Q

When a property’s insurance coverage exceeds its cash value (1 word)

A

Overinsurance

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15
Q

What are ‘personal effects’?

A

Privately owned items normally worn/carried on the person

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16
Q

What is ‘personal property’?

A

movable property of the insured, such as autos, furniture, electronics, and any other personal items

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17
Q

A policy designed to fit the general needs of a business; insured usually cannot elect to exclude coverage that is automatically provided in the package

A

Prepackaged policy

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18
Q

What is ‘real property’?

A

Non-movable property, such as land, houses, and other structures

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19
Q

Intentional destruction or damage to property

A

Vandalism

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20
Q

Responsibility under the law, also referred to as:

A

Liability

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21
Q

Under the dwelling program, there are three separate coverage forms available:

A
  • basic - broad - special form coverage
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22
Q

The Dwelling Program form structure has 7 key elements:

A
  1. Agreement - insuring agreement, 2. Definitions 3. Deductible 4. Coverages, including Other Coverages 5. Perils Insured Against 6. General Exclusions 7. Conditions
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23
Q

Dwelling form DP 00 01 is a _____ _____ coverage form and provides the most limited coverage of the three forms

A

named peril coverage form

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24
Q

The basic form (DP1) insures against what 7 perils? *hint: acronym

A
  1. Windstorm
  2. Hail
  3. Aircraft/vehicles
  4. Riots/civil commotion
  5. Volcanic eruption
  6. Explosion
  7. Smoke
    WHARVES
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25
Q

True/False: Awnings, signs, and antennas outside the dwelling are not covered under the DP-1

A

TRUE

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26
Q

True/False: Damage by rain/snow/sleet/sand/dust to the interior of a building or to personal property located in the dwelling will be covered only if the wind/hail damages the roof/wall of the building first, by which creating an opening to the interior of the building under the DP-1

A

TRUE

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27
Q

True/False: If interior damage results from wind/hail entering through an open window, it IS covered under the DP-1.

A

FALSE

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28
Q

True/False: No coverage applies to rowboats and canoes (outside of the building) in the DP-1

A

TRUE

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29
Q

True/False: No coverage applies to trees, shrubs, plants, or lawns under the DP-1

A

TRUE

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30
Q

True/False: There is a minimum amount of insurance of $100,000 required for the basic form DP-1

A

FALSE: There is NO minimum amount of insurance required

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31
Q

What is the difference between a hostile and friendly fire?

A

Hostile - fire was not intentional, not contained within intended boundaries; Friendly - intentional and contained within intended boundaries (ex. fireplace)

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32
Q

True/False - Can extended coverage perils be added to the basic DP-1 policy for an additional premium?

A

True

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33
Q

An explosion that takes place in a dwelling, other structure, or in a structure containing covered personal property will be covered under (DP1 form):

A

Fire or Lightning & Internal Explosion

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34
Q

What is an example of a covered loss under the internal explosion basic peril category?

A

The explosion of a gas stove

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35
Q

True/False: Damage resulting from electric arcing, breakage of water pipes, breakage or operation of pressure relief devices, or explosion of steam boilers or steam pipes owned/leased/operated by insured IS covered under Fire or Lightning & Internal Explosion

A

FALSE

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36
Q

Does the peril of internal explosion have to occur inside the dwelling? Yes/No

A

No

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37
Q

Self-propelled missiles and spacecraft fall under what basic peril category in the DP-1?

A

Aircraft

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38
Q

True/False: Loss or damage to fences, driveways, or walks caused by a vehicle IS covered under the Vehicles basic peril of the DP-1.

A

FALSE

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39
Q

True/False: Sudden and accidental damage caused by smoke (emission/puffback of smoke, soot, fumes, or vapors from a furnace/boiler) IS covered under the DP-1

A

TRUE

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40
Q

Does coverage for the Smoke basic peril under the DP-1 apply to smoke from agricultural smudging, industrial operations, or a fireplace? Yes/No

A

NO

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41
Q

Is there coverage for loss caused by earthquake, land shock waves, or tremors under the DP-1?

A

NO

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42
Q

Under the DP-1, if extended coverage perils are insured on the policy, the insured may also add coverage for _________ and _________ ________

A

Vandalism or malicious mischief (VMM)

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43
Q

Is damage to the building resulting from theft/burglary covered under VMM on the DP-1? Yes/No

A

YES

44
Q

Is property stolen during a theft/burglary covered under VMM on the DP-1? Yes/No

A

NO

45
Q

True/False: Glass breakage or safety glazing material that is part of the building (except glass building blocks) is NOT covered by the VMM basic peril on the DP-1.

A

TRUE

46
Q

Is there coverage under VMM on the DP-1 for an insured if the insured’s premises, prior to loss, has been vacant for more than 60 consecutive days?

A

NO

47
Q

Dwelling Property 2 - Broad Form Acronym

A

DP-2

48
Q

What does the DP-2 cover?

A

Basic Form + Extended Coverage Perils + V&MM + Broad Form Perils

49
Q

What are the 7 additional broad form perils listed in the DP-2 Broad Form?

A
  1. Damage by burglars; 2. Falling Objects; 3. Weight of ice, snow, or sleet 4. Accidental discharge or overflow of water or steam 5. Sudden and accidental tearing apart, cracking, burning, or bulging 6. Freezing 7. Sudden and accidental damage from artificially generated electric current
50
Q

What is the acronym to remember the DP-2 Broad Form coverage perils?

A

BB BICE-GOLF
Bursting of heating systems
Burglary Damage
Breaking of water heaters
Ice, snow, or sleet weight
Collapse of building or part of a building
Electrical damage (artificially generated)
Glass breakage
Objects falling from outside
Leakage of water or steam damage
Freezing of plumbing

51
Q

What 3 other coverages are offered on the DP-2 Broad form with special conditions?

A
  1. Lawns, trees, shrubs, and plants 2. Breakage of glass 3. Collapse
52
Q

What is the difference in how damage by burglars is categorized in the DP-1 versus the DP-2?

A

DP-1 includes coverage for damage by burglars under VMM; DP-2 includes burglary damage as its own peril

53
Q

True/False: Damage to awnings, fences, outdoor equipment, outdoor radio and TV antennas or aerials/masts/towers ARE covered under Falling Objects on the DP-2 Form

A

FALSE

54
Q

True/False: Damage to the interior of a building IS covered if the roof or an outside wall was damaged first under the Falling Objects peril on the DP-2

A

TRUE

55
Q

True/False: The falling object itself is covered under the Falling Objects category peril on the DP-2

A

FALSE

56
Q

True/False: Damage to piers/wharves/docks/awnings/fences/swimming pools/foundations/retaining walls/pavement/patios IS covered under Weight of Ice, Snow, Sleet peril on the DP-2

A

FALSE

57
Q

True/False: Damage caused by the accidental discharge or leakage of water/steam from a plumbing/heating/air conditioning/automatic sprinkler IS covered under Accidental Discharge/Overflow of Water/Steam peril on the DP-2

A

TRUE

58
Q

True/False - The cost to tear out and replace a part of the building is covered if necessary to replace the appliance under the Accidental Discharge or Overflow of Water/Steam on the DP-2

A

TRUE

59
Q

Will the policy under the Accidental Discharge or Overflow of Water/Steam on the DP-2 pay for damage caused by continuous water seepage over a long period of time?

A

NO

60
Q

True/False: The sudden/accidental tearing apart, cracking, burning, or bulging of appliances from a steam/hot water heating system, an A/C system, an automatic fire protection sprinkler system, or an appliance for heating water, is covered under the DP-2

A

TRUE

61
Q

Are items not considered appliances covered under the freezing category of the DP-2?

A

No, they are NOT covered

62
Q

The _____ and _______ forms cover collapse of a building

A

Broad/special

63
Q

Does collapse coverage include settling, cracking, shrinkage, bulging, or expansion under the Collapse coverage on the DP-2?

A

NO

64
Q

Is there an additional amount of insurance required to include lawns, trees, shrubs, and plants coverage on the DP-2?

A

Yes; maximum $500 per tree/shrub/plant

65
Q

Basic Form Numbers are….

A

DP 00 01 or DP1

66
Q

Broad Form Numbers are….

A

DP 00 02 or DP2

67
Q

Special Form Numbers are…

A

DP 00 03 or DP3

68
Q

Basic form peril type is:

A

Named Peril

69
Q

Broad form peril type is:

A

Named Peril

70
Q

Special form peril type is:

A

Open AND Named Peril

71
Q

All perils are insured against EXCEPT those specifically excluded - this is indicative of which DP form?

A

Special form, DP 00 03, DP-3

72
Q

All coverage forms, DP-1, DP-2, and DP-3, include other coverages that are extensions of the major coverages A, B, C, D, and E. What are these 8 coverages?

A
  1. Other Structures 2. Debris Removal 3. Improvements, alterations, and additions 4. Worldwide coverage 5. Rental value & additional living expense 6. Reasonable repairs 7. Property removed 8. Fire department service charge
73
Q

Name the 6 types of homeowners policies -

A

HO-2, HO-3, HO-4, HO-5, HO-6, and HO-8

74
Q

The homeowners policy is a comprehensive insurance form used to: ______ ___________ _____

A

Insure Residential Risks

75
Q

Homeowners form includes coverage for…. (2) (hint: letter p)

A

personal property of the insured; personal liability protection

76
Q

Insuring a tenant of a non-owned dwelling (renter’s form) is a Dwelling or Homeowner’s policy?

A

Homeowners

77
Q

A seasonal dwelling and/or secondary residence are examples of Dwelling or Homeowner’s policy?

A

Homeowners

78
Q

Homeowners policies may include a stipulation of no more than _ families or _ roomers/boarders per unit

A

2

79
Q

What peril type is Broad Form HO-2?

A

Named Peril

80
Q

What peril type is Special Form HO-3?

A

Open Peril AND Named Peril

81
Q

What peril type is the Renters/Tenants Form HO-4?

A

Named Peril

82
Q

What peril type is the Comprehensive Form (HO-5)?

A

Open Peril

83
Q

What peril type is the Condominium Form (HO-6)?

A

Named Peril

84
Q

What peril type is the Modified Form (HO-8)??

A

Named Peril

85
Q

HO-2, HO-3, and HO-5 homeowners forms provide building coverage on a ___________ ____ _____ ; modified form HO-8 provides coverage on an ______ ____ _____ _____

A

Replacement cost basis; actual cash value basis

86
Q

Is vehicle damage to fences / driveways / walks caused by an insured/resident covered under the HO-3 special form?

A

Yes

87
Q

True/False: Coverage may be issued to an owner-occupant for the HO-4 tenant broad form.

A

False

88
Q

The __-_ form is intended for use when replacement cost coverage is not practical; typically when market value of structure is considerably lower than the replacement cost (older homes)

A

HO-8, modified coverage form

89
Q

Includes bodily harm, sickness or disease, including required care, loss of services, and death that results from the bodily injury

A

bodily injury

90
Q

a trade, profession, or occupation engaged in on a full-time, part-time, or occasional basis

A

business

91
Q

physical injury, destruction, or loss of use of tangible property

A

property damage

92
Q

includes employees of the insured whose duties are related to the maintenance or use of the home

A

residence employee

93
Q

Is farmland considered an insured location?

A

NO

94
Q

An assessment of property to determine either the correct amount of insurance to be written or the amount of loss to be paid

A

Appraisal

95
Q

Time element coverage or business interruption coverage (2 words)

A

Business Income

96
Q

The slowdown or cessation of the insured’s business activities

A

Suspension

97
Q

Business activity at the premises described in the declarations

A

Operations

98
Q

Begins 72 hours after the direct physical loss for business income; Begins immediately for extra expense coverage (3 words)

A

Period of Restoration

99
Q

A condition that exists allows the insurer to reduce the amount of loss if insured does not resume operations as quickly as possible (3 words)

A

Resumption of Operations

100
Q

Coverage will be extended if the insured suffers a business income/extra expense loss because a neighboring property is damaged by a loss covered in the insured’s policy and requires a suspension of the insured’s operation

A

Civil Authority

101
Q

This policy provides time for the insured to resume normal income levels (3 words)

A

Extended business income

102
Q

Period of restoration begins __ hours after the direct physical loss for business income

A

72

103
Q

Period of restoration begins ___________ for extra expense coverage

A

immediately

104
Q

A condition exists that allows the insurer to reduce the amount of the loss if the insured does not resume operations as quickly as possible

A

Resumption of operations

105
Q

A contract for the transport of goods between the shipper and the carrier

A

Bill of Lading

106
Q
A

Home & Life Insurance (3 decks)

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