Chapter 7 Miscellaneous Personal Lines

Question 1

Personal Inland Marine Insurance

Answer 1

coverage that is written on a homeowners policy by endorsement or as a stand-alone policy. It insures moveable property against direct loss

Question 2

Personal Articles Floater (Scheduled Article Floater)

Answer 2

provides worldwide coverage when used to insuring individual personal property on an itemized or scheduled basis

Question 3

Coverage under a Personal Articles Floater

Answer 3

covered on an open perils basis, and claims are settled on an actual cash value basis with some exceptions

Question 4

Boatowners Policy

Answer 4

package policy that provides both property and liability coverage and is used to insure boats that can be towed by a car

Question 5

Yacht Policy

Answer 5

designed for larger vessels with crew members and includes Hull Insurance: protection and indemnity coverage, medical payments coverage, personal property coverage for property on the yacht, coverage for fuel spills, and commercial towing

Question 6

Lay Up Warranty

Answer 6

applies when the insured boat or yacht is in storage and allows for a return of premium due to the reduced risk of loss while the boat is laid up. If the insured operates or lives on the craft during the lay–up period, no coverage applies

Question 7

Difference in Conditions (DIC) Insurance

Answer 7

open perils policy with a high Deductible. It is used to fill coverage gaps in a property policy such as the perils of earthquake, flood, collapse, and subsidence

Question 8

Earthquake Endorsement

Answer 8

covers earth movement that is excluded on virtually all property policies, and in some jurisdictions may also be purchased as a separate policy

Question 9

National Flood Insurance Program (NFIP)

Answer 9

federal program administered by FEMA, which enables property owners to purchase flood insurance under either the Emergency or Regular Program. Loss deductible applies separately to the building and to personal property

Question 10

Emergency Program

Answer 10

applies when a community is in its earliest stage of participation in the NFIP

Question 11

Flood Control Program

Answer 11

in order to participate in the NFIP, participating communities in flood-prone areas must have established an approved flood control program

Question 12

FAIR plan

Answer 12

Fair Access to Insurance Requirements program - provides basic property insurance to property owners who are unable to secure coverage in the standard property marketplace

Question 13

self-insured retention

Answer 13

a form of cost-sharing, if the personal umbrella policy drops down to cover a loss not insured by an underlying primary policy

Question 14

Personal Effects Floater

Answer 14

provides open peril coverage for items worn or carried by tourists and travelers