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Property & Casualty > Unit 7 > Flashcards

Unit 7 Flashcards

1
Q

perils special homeowners

A

open perils

- all direct causes of loss unless specifically excluded (dwelling/other structures)

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2
Q

perils basic homeowners

A

fire, lightning, explosion, wind, hail, smoke, aircraft, vehicles, volcanic eruption, v&mm, riot/ civil commotion, theft
exclusions apply

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3
Q

perils broad homeowners

A

all basic, including - falling objects, accidental discharge of water, weight of ice, sleet, snow, freezing of plumbing, artificially generated current, sudden tearing & breaking of heating & cooling system

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4
Q

additional coverages in HO 2,3,5

A

collapse - caused by covered peril, not earthquake
landlord furnishings
grave markers
ordinance of law

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5
Q

coverage D

A

loss of use - all homeowners policies

indirect losses due to loss of use of home caused by a peril, additional living expenses, rental income

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6
Q

coverage C

A 
personal property
not attached to the dwelling
anywhere in the world
guests property (if requested)
exclusions: pets, property of renters, motorized vehicles, special limits for theft and all losses
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7
Q

coverage B

A

other structures- separated by a clear space
not attached to dwelling
not used for business purposes

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8
Q

coverage A

A

dwelling
including property attached
materials on the premises used in construction
no cover for a renter

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9
Q

HO - 5

A

comprehensive form - owner occupant

“best you can buy”

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10
Q

HO - 6

A

condominium owners

wall, ceiling, floor, contents - not entire building

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11
Q

HO - 8

A

modified form

special circumstances

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12
Q

HO- 4

A

tenants or renters

4 rent- personal property

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13
Q

homeowners policy

A 
package policy
multiline
includes both property - section 1
and liability - section 2
prevents gaps in coverage
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14
Q

homeowners eligibility

A

owner occupied (other version for a renter)
no more than 4- family dwelling
primary purpose as a residence
dwellings under construction are eligible
mobile homes (require endorsement)

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15
Q

insureds

A
  • named insured including a resident spouse
  • resident relatives
  • anyone under the age of 21 & in the care of an insured (foster/ exchange student)
  • full-time student under the age of 24, relative and prior resident
  • representative of named insured in the event of death
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16
Q

cancellation

A

cancellation by the insurance company
- during the first 60 days for any reason, minimum 10 days’ notice
- other reasons after 60 days, minimum 30 days’ notice
material misrepresentation, substantial change in the risk
- nonpayment of premium- 10 days’ advanced notice (grace period)

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17
Q

nonrenewal by insurer

A

nonrenewal by insurance company

30 days’ advance notice

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18
Q

standard mortgagee clause

A
  • named on dec. page
  • can pay the premium
  • file a claim up to insurable interest
  • receive advance notice of cancellation
  • dishonesty of insured doesn’t prevent mortgagee from cancelling
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19
Q

HO -2

A

broad form - owner occupant

names what perils are covered

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20
Q

HO - 3

A

special form
owner occupant
all risk policy

21
Q

personal property replacement cost endorsement

A

insures personal property on a replacement cost basis instead of ACV
section 1

22
Q

scheduled personal property endorsement

A
  • insured against open perils
  • replacement coverage
  • usually no deductible
    9 categories: cameras, coins, silverware, jewelry, furs, musical instruments, golf equipment, fine art, stamps
    section 1
23
Q

permitted incidental occupancies endorsement

A
  • overrides the exclusions under the homeowners forms that apply to the insured’s business activities conducted on the residence premises
  • removes $2,500 limit on business personal property
    section 1
24
Q

earthquake endorsement

A

land movements including volcanic eruption
one deductible for 72 hours (any aftershocks)
section 1

25
Q

limited fungi, wet or dry rot, bacteria endorsement

A
  • caused by a covered peril while the policy is in force
  • only used in the HO- 3 & HO-5
  • fungi defined as any type or form of fungus including mold or mildew
    section 1
26
Q

home day care endorsement

A

extends liability coverage to apply to day care operations
premium based on number of children
section 1

27
Q

additional coverages “supplementary payments”

A
  • automatically included
  • BAILED
  • defense costs, attorney fees, court cost
  • court ordered bonds
  • post judgement interest
  • reasonable expenses
  • damage to property of others
  • loss assessment
    section 2
28
Q

watercraft coverage

A
  • watercraft no owned & not rented to an insured regardless of length or horsepower
  • watercraft owned or not owned by insured
  • sailboats less than 26 feet
  • boats with inboard motors of 50 horsepower or less
  • boats with outbound motors of 25 horsepower or less
29
Q

coverage E/ F exclusions

A
  • injury or damage that is expected or intended by the insured and others
  • assumed through a contract
  • bodily injury or property damage arising out of business pursuits or rendering/ failure of professional services
  • bodily injury or property damage out of rental of any part of the premises
  • ownership, maintenance, use, loading, or unloading of aircraft, watercraft, vehicles
30
Q

coverage F

A

medical payments

  • to others (not the insured)
  • no fault
  • on or off premises if due to insured’s activities
  • covers domestic employees on or off premises
  • three years
31
Q

coverage E

A
  • personal liability - bodily injury/property damage
  • insured at fault
  • anywhere in the world
32
Q

additional coverage in all homeowners

A 
debris removal, reasonable repairs, trees, shrubs and other plants, fire department service charge, property removed, credit cards, forgery & counterfeit money
* except for HO 8- broken class loss assessment
33
Q

glass or safety glazing material

A

except for in HO - 8 broken glass is covered

34
Q

loss assessment

A
  • by a homeowners association
  • maximum of $1,000
  • deductible applied once
  • damage to property caused by a covered peril
35
Q

credit card forgery & counterfeit money

A

maximum of $500

no deductible

36
Q

property removed

A
  • protects from a sure & certain loss

- protects from all covered perils for 30 days

37
Q

fire department service charge

A

up to $500

no deductible

38
Q

tree, shrub and other plants

A
  • maximum 5% of coverage A in addition to limit
  • maximum of $500 per tree
  • loss by fire, lightning, explosion, riot, aircraft, vehicles not owned or operated by a resident, theft, v & mm
39
Q

reasonable repairs

A

pays cost for repairs necessary to protect from additional loss

40
Q

debris removal

A
  • expenses paid if caused by covered peril
  • removal of fallen trees covered if they damaged a covered structure or blocking roadway
  • maximum of $1,000 for tree debris removal per occurrence and $500 per tree
41
Q

deductible

A

portion of a loss (% or $) that the insured must pay before the insurance company will pay its share

42
Q

claims payment

A

actual cash value

  • personal property
  • awnings, carpeting, appliances, outdoor antennas, & equipment
  • structures that are not buildings

replacement

  • dwelling & other structures
  • if insured for at least 80%
43
Q

excluded perils in all homeowner policies

A
  • enforcement of law or ordinance regulating construction, repair, or demo
  • earth movement, including earthquake
  • flooding/overflow from a sump pump
  • power interruption that takes place off the residence premises
  • war / nuclear hazard
  • insured’s failure to save/preserve property
  • intentional loss by insured
  • destruction, confiscation or seizure of property
44
Q

limited fungi, wet or dry rot, or bacteria endorsement

A

liability coverage for all damages arising directly or indirectly out of the actual, alleged, or threatened contact with mold
section 2

45
Q

home day care endorsement

A

premium based upon the number of children
sexual molestation or corporal punishment are excluded
section 2

46
Q

permitted incident occupancies endorsement

A

liability for home-based business
only covers business activity listed in the endorsement
section 2

47
Q

personal injury endorsement

A

libel, slander, false arrest, invasion of privacy or malicious prosecution
section 2

48
Q

business pursuits endorsement

A

business conducted away from the residence premises
only while in the employment of someone else
section 2

49
Q

watercraft endorsement

A
  • watercraft powered by outboard engines or motors exceeding 25 horsepower
  • watercraft powered by inboard or out-driven engines greater than 50 horsepower
  • sailboats 26 feet or more in length

Property & Casualty (9 decks)

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