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Insurance > unit7 > Flashcards

unit7 Flashcards

1
Q

package policy

A

a.k.a. multiline policy because it provides property and liability insurance in a single policy = Homeowners policy

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2
Q

Homeowners Eligibility

A
  1. Owner occupied
  2. 4 family limit
  3. Primary purpose as a residence
  4. under construction for owner occupant
  5. mobile homes require home endorsement
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3
Q

Eligibility of Insureds

A
  1. name insured including a resident spouse
  2. relatives
  3. under 21
  4. full time student under 24
  5. representative is death
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4
Q

cancellation conditions

A
  1. during the first 60 days for any reason. min 10 day notice
  2. other after 60 days min 30 day notice
    material misrepresentation
    substantial change in the risk
  3. nonpayment of premium 10 day advanced notice
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5
Q

conditions for nonrenewal by insurer

A

30 day advanced notice

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6
Q

standard mortgagee clause

A
  1. can pay the premium,
  2. file a claim,
  3. get cancellation notice,
  4. dishonesty of insured doesn’t prevent mortgagee from collecting
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7
Q

homeowner policies

A 
HO-2 Broad Form; owner occupant
HO-3 Special Form; owner occupant
HO-4 Tenants or Renters
HO-5-Comprehensive Form; owner
HO-6-Condominium owner
HO-Modified Form for special risks
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8
Q

property coverage provided by the homeowners policy under section l

A

A-dwelling
B-other structures
C-personal property
D-loss of use

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9
Q

what is the standard coverage A minimum limit for HO-6

A

$1,000

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10
Q

keys to coverage A

A

Dwelling

  1. includes property attached
  2. materials the premises used in construction
  3. no coverage for a renter
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11
Q

keys to coverage B

A

other structures separated by a clear space
2. not attached to dwelling

  1. not used for business purposes (not included in HO-4 renters policy)
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12
Q

keys to coverage C

A

personal property - included in all HO policies

  1. not attached to the dwelling
  2. anywhere in the world
  3. guest’s property (if requested)
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13
Q

coverage C exclusions

A

pets, motorized vehicles (unless used to service), property of renters of boarders, credit cards, rental property that is part of the apartment

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14
Q

what broad named perils are covered in homeowners insurance

A

all basic perils plus BiG AFFECT

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15
Q

coverage D keys

A

loss of use - included in all HO policies

  1. additional living expenses covered if loss makes residence uninhabitable
  2. if renters affected policy cover the loss of fair rental value
  3. civil authority loss - rental covered for two weeks
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16
Q

special limits of coverage with theft clause

A

jewelry, firearms, silverware

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17
Q

2,500 limit

A
  1. theft of firearms,
  2. theft of silverware,
  3. property on the residence premises used primary for business purposes
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18
Q

basic named perils

A

basic

fire, lighting, internal explosion

extended coverages

WCSHAVVER V&MM

theft

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19
Q

Basic named perils: theft coverage exclusions

A
  1. theft by insured,
  2. dwelling under construction,
  3. from rental portion of premises,
  4. theft of watercraft off of the premises,
  5. mysterious disappearance
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20
Q

broad named perils

A

basic + EC + big affect + smoke

burglary
ice
glass
accidental discharge
freezing
falling
electrical current
tearing asunder

smoke by fireplace

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21
Q

coverage limit for tree, shrub, other plant removal

A

5% of the Coverage A limit
$500 max per tree

In HO-4 and HO-6 the limit is 10% of the Coverage limit for C

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22
Q

what does property removed cover

A

protects from a sure and certain loss

protects from all covered perils for 30 days

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23
Q

Max for credit card theft or counterfeit money

A

$500

No deductible

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24
Q

Max for Loss Assessment by a Homeowners Association

A

$1,000
damage to property caused by peril
deductible apply once

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25
Q

Glass or Safety Glazing Material covers what and isn’t available in what HO-policy

A

covers glass not available in 8

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26
Q

Homeowners form contain what additional coverages with no additional premium

A 
debris removal
reasonable repairs
tree, shrubs, and other plants
fire dept. service charge
property removed 
credit card, forgery
loss assessment
8. glass
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27
Q

what losses are paid at ACV

A

personal property

awnings, carpeting, appliances, outdoor antennas and outdoor equipment

structures that are not building (swimming pools, fences)

28
Q

what losses are paid at replacement cost

A

losses to the dwelling and other structures if insurance carried is at least 80% of replacement cost

29
Q

what is the permitted incidental occupancies

A

removes 2,500 limit on business personal property

30
Q

9 categories for scheduled personal property

A 
jewelry
furs
cameras
musical instrument
silverware
golf equipment
fine arts
stamps
coins
31
Q

what are the coverages provided under section2

A

E-personal liability

F- medical payments to others

32
Q

base limit for E and F coverage

A

E-100,00

F-1,000/ person

33
Q

which policy covers damages that the insured is legally obligated to pay

A

Coverage E

34
Q

watercraft coverage

A

covers

  1. sailboats less than 26 feet in length
  2. 50 horsepower or less (inboard motors)
  3. 25 horsepower or less (outboard motors)
35
Q

person injury endorsement covers what

A

non bodily injury claims. hurt feelings, slander, libel

36
Q

business pursuits endorsement

A

coverage for a business conducted away from the residence premises

37
Q

permitted incidental occupancies endorsement

A

liability for home based business

38
Q

which policies cover theft

A

all homeowners not automatically included in dwelling property

39
Q

what class of personal property has special limits for theft but not for any other type of loss

40
Q

what unendorsed policy provides open perils coverage on Coverage C personal property

A

HO-5

comprehensive policy is an open peril contract on personal property

41
Q

equation for insurance payment when 80% coinsurance isn’t met

A

(amount of insurance carried) / (amount of insurance required) * (amount of loss) - (deductible) = what the insurance company will pay

42
Q

What HO-3 endorsements will change coverage on specifically identified personal property from named peril to open peril

A

scheduled personal property endorsement allows the insured to separately schedule one or more the 9 major categories (fur, fine arts , etc.) -property with high value

the coverage is provided on an open peril bases with no deductible

43
Q

what will the insurance company pay if 80% replacement cost isn’t met

A

will at least pay the actual cash value of the loss or an amount between ACV and replacement cost

payment will be which is ever greater between

  1. ACV

or

  1. (policy limit) / (80% of replacement cost) * (cost to repair or replace) - (deductible) = payment
44
Q

standard exclusions in the homeowners forms

A

power failure occurring away from the insured’s premises, earth movement, water damage from flood or surface water

45
Q

when does the insurance-to-value provision apply

A

when the coinsurance clause isn’t met (80% of the total value of the property being insured)

46
Q

coverage to protect you if you damage property while conducting business

A

business pursuits endorsement

47
Q

mobile home can be insured under what type of policy

A

special endorment

vs. duplex, etc. is unendorsed

48
Q

max credit card fraud

49
Q

what does HO-2 cover

A

this broad form policy covers property and personal property on a named-peril basis.

50
Q

office and apartment buildings covered with what

A

a commercial property

51
Q

what type of watercraft may be covered under a dwelling policy.

A

rowboats and canoes

52
Q

in a homeowners policy, personal property is covered up to what

A

10% of the coverage C limit

53
Q

what is the amount of coverage for personal property

A

50% of coverage under an HO-2 policy

54
Q

what percent of personal property is applied to property not located at the insured’s primary residence

A

10% of the personal property limit

55
Q

Coverage D covers?

A

loss of use

56
Q

loss of rent due to tenant having to move out due to damage caused my a covered peril is covered under what

A

coverage D

loss of use

57
Q

homeownerss policy excludes liability arising out of what

A

the rental part of the premises except for the rental part of an insured location as a residence

58
Q

what are appurtenant structures

A

any structure set apart from the dwelling by clear space

59
Q

how is personal liability coverage added to a dwelling or homeowner policy

A

it is added by endorsement to the dwelling policy but automatically included in the homeowners policy

60
Q

a special limit of $1,500 is applied to what

A

jewelry
watches
furs
precious stones

61
Q

insurance limit of coverage B

A

10% of Coverage A

62
Q

freezing of plumbing and related system is covered under what

A

broad peril coverage. not basic

63
Q

collapse is included in which HO policies

64
Q

which HO policies pay replacement cost for a dwelling or other structures

65
Q

all of the HO forms provide identical what

A

liability coverage

66
Q

what is excluded from all homeowners policies?

A

water damage, earth movement, power failure away from home

67
Q

what’s included in all homeowners policies

A

debris removal and reasonable repairs

Insurance (16 decks)

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