unit9

Question 1

dwelling and homeowners policies exclude losses caused by what

Answer 1

flood

Question 2

what is NFIP

Answer 2

the National flood insurance program to make flood insurance available through federal subsidization

Question 3

who manages the NFIP

Answer 3

the Federal emergency management agency FEMA

Question 4

what two types of flood insurance programs are available

Answer 4

emergency and regular

Question 5

emergency program limits for 1. building 2. personal property (contents) 3. commercial 4. business personal property

Answer 5

1. 35,000
2. 10,000
3. 100,000
4. 100,000

Question 6

regular program limits for 1. building 2. personal property (contents) 3. commercial 4. business personal property

Answer 6

1. 250,000
2. 100,000
3. 500,000
4. 500,000

Question 7

minimum deductible for flood insurance 1. building 2. contents

Answer 7

both $1,000

Question 8

standard deductible under 1. emergency program 2. regular program 3. house built before 1978

Answer 8

1. 2,000
2. 1,000
3. 500

Question 9

property protected at another place outside of flood hazard for how many days

Answer 9

45

personal property in basement or outside is not covered

Question 10

what is “Increased Cost of Compliance”

Answer 10

policy that will pay up to 30,000 to cover extra expenses related to the cost to repair flood damage being increased due to state or local flood management laws or ordinances.

Question 11

what is captured water

Answer 11

water damage from sewer backup, broken pipe, dishwasher etc., which is not covered under flood insurance

Question 12

definition of flood

Answer 12

temporary water from a natural source

covers two or more acres that are usually dry

mudflow

water from inside the house is NOT a flood

Question 13

Flood Exclusion

Answer 13

1. Accounts
2. Lawns
3. Vehicles
4. Fences
5. underground structures
6. newly constructed over water
7. structures that are primarily containers exception: silos and grain storage buildings

Question 14

Value of Losses for flood insurance

Answer 14

replacement cost RC available only for single family dwellings if 80% coverage carried

everything else ACV

Question 15

Write your own program

Answer 15

insurance company writes the policies using its name

NFIP sets the rates and underwriting rules

insurance company is paid a fee for its expenses

Question 16

what kind of dwelling policy form can be used for mobile homes and what are the conditions

Answer 16

only the basic form and the mobile home must be permanently placed

Question 17

what HO form can be used to cover the contents of a mobile home but not the mobile home itself

Answer 17

HO4-renters

Question 18

a mobile homeowners endorsement can be attached to what homeowners policies

Answer 18

HO2 and HO3

Question 19

% coverage for mobile home for personal property is reduced to what of the dwelling coverage

Answer 19

40%, it’s 50% on homeowners forms

Question 20

loss of use is reduced to what of the dwelling coverage for mobile homes

Answer 20

20%, its 30% on most homeowners forms.

Question 21

broader coverage for personal property can be obtained through what are the two most common forms

Answer 21

personal inland marine forms

personal articles
personal effects

Question 22

what is a pair or set condition?

what are the two reimbursement options given by Inland marine floaters?

Answer 22

states that the insurance company will not be liable for the entire value of a set when only a part is damaged

1. repair, replace, or restore the set
2. pay the insured the difference between the ACV of the full set and the ACV of the undamaged part

Question 23

personal inland marine floater exclusions

Answer 23

war
nuclear hazard
wear and tear
gradual deterioration
insects
vermin
inherent vice

Question 24

personal articles floaters form provides coverage for what 9 categories

Answer 24

same as homeowners scheduled personal property endorsement

jewelry 
furs
fine art
golf equipment
cameras
silverware
musical instruments
stamps
coins

Question 25

the agreed value loss settlement form is used for what

Answer 25

scheduled property only

Question 26

the standard loss settlement uses what

Answer 26

the lesser of
ACV
repair, or replace cost, or amount of insurance specified in the policy

Question 27

feature of personal article form is automatic coverage for what

Answer 27

newly acquired property in the category of
jewelry
furs
cameras
musical instruments
fine art

Question 28

personal article property coverage

Answer 28

30 days for 25% of the insurance of 10,000 whichever is less

fine art: 90 days, 25%

Question 29

personal effects floater a.k.a.

Answer 29

traveler’s baggage

Question 30

3 keys to applications

Answer 30

1. agent doesn’t have binding authority
2. initial premium pain in full
3. 30 day waiting period
   - waived if bought when house has a mortgage
   - applies to requests to increase coverage on an existing policy

Question 31

2 key’s to personal articles floater

Answer 31

• provides coverage for 9 specific categories

- standard loss settlement and agreed value loss settlement

Question 32

which inland marine form provides open peril coverage for the insured’s personal property while traveling

Answer 32

personal effects form

Question 33

3 keys to mobile home package policy

Answer 33

1. up to 10% of the mobile home coverage can be extended to cover other structures
2. it may include collision coverage
3. it includes liability coverage similar to section 2 of the homeowners policy

Question 34

which inland marine form provides open peril coverage for the same categories of property covered under the homeowners scheduled personal property endorsement

Answer 34

personal articles form