Unit 4

Question 1

Real Property

Answer 1

Buildings

Question 2

Personal Property

Answer 2

moveable contents

Question 3

Specific/ Scheduled Covered Prop.

Answer 3

Detailed list of covered items

Question 4

Blanket Covered Prop

Answer 4

All of a certain type of prop.

Single limit coverage

No detailed list

Question 5

Limits of Insurance

Answer 5

Max coverage limits

Listed on dec page

Question 6

Named Peril

Answer 6

Only perils on the list are covered

Question 7

Open (Special) Perils

Answer 7

Covers all perils except those specifically excluded

Question 8

Basic Perils

Answer 8

Fire, lighting and internal explosions

Extended coverage

Question 9

WCSHAVVER

Answer 9

Wind
Civil Commotion
Smoke
Hail
Aircraft
Vehicles
Volcanic Eruption
Explosion
Riot

Question 10

V & MM

Answer 10

Vandalism and Malicious Mischief

Question 11

Broad Perils

Answer 11

All of basic, plus extended perils WCSHAVVER and V&MM and BIG AFFECT

Question 12

BIGAFFECT

Answer 12

Burglary damage
Ice, Sheet and Snow
Glass Breakage
Accidental discharge of water
Freezing objects
Falling Objects
Electrical Current
Collapse
Tearing asunder

Question 13

Broad Peril Exclusions

Answer 13

Weight of ice, snow or falling objects on awnings, fences, patios, swimming pools, docks and retaining walls
Accidental discharge over water from continuous leaking
Flooding from river or lake
Burglary if prop vacant more than 60 days

Question 14

Special/Open Peril Coverage

Answer 14

All risk of direct physical loss except those SPECIFIED

Exclusions - Flood, Earthquake, Intentional damage caused by insured, losses due to enforcement of building codes, damage caused by power interruption occurring off premises, government seizure

Question 15

Direct Loss

Answer 15

Immediate damage caused by peril

Question 16

Indirect loss

Answer 16

Loss over time as a result of direct loss

ie: cost of rental car due to accident

Question 17

Class 1 construction

Answer 17

Frame

Question 18

Class 2 construction

Answer 18

joisted Masonry

outside non combustible roof& floor combustible

Question 19

Class 3

Answer 19

Noncombustible

exterior walls, roof and floor non combustible

Question 20

Class 4 `Construction

Answer 20

Masonry

Metal

Question 21

Classs 5 Construction

Answer 21

Modified Fire Resisttive

Fire resistant less than 2 hours

Question 22

Class 6 Construction

Answer 22

Fire Resistive

Question 23

Loss Valuation

Answer 23

how insurer calc. appropriate loss

Question 24

Actual Cash Value

Answer 24

Replacement cost based on todays price

ACV= Replacement - Depreciation

Question 25

Replacement cost

Answer 25

current replacement cost. no depreciation

Question 26

Functional Replacement

Answer 26

replace with modern construction

Question 27

Market Value

Answer 27

selling price

Question 28

Agreed Amt

Answer 28

value of loss determined before policy issue

Question 29

Stated amt

Answer 29

insured up to amt

Question 30

Pair and Set

Answer 30

value of pair not single item in set

Question 31

Appraisal Dispute Method

Answer 31

Co and insured pay own appraisal

Appraiser gets umpire if no agreement

Agreement of any 2 of three determines amt

Question 32

Arbitration

Answer 32

disagreement about other areas of loss

Question 33

Coinsurance

Answer 33

ins carried/ins required X loss= claim payment - deductible

Question 34

Vacancy

Answer 34

No prop or people at time of loss

Question 35

Unoccupancy

Answer 35

no people present at time of loss

Question 36

Standard Mortgage or Loss Payable Clause

Answer 36

Mortgagee

Question 37

No benefit to Bailee

Answer 37

business or person w/ temp control of prop

bailee cannot benefit from policy