Ch 4 - Dwelling ('02) Policy - 3% of exam

Question 1

Why do I need to know whether a policy is an HO or a DP?

Answer 1

In an initial conversation with the Insured: to get an idea whether a loss is covered.

Question 2

What are the 9 perils (covered under a Basic policy)?

Answer 2

Chart? (aren’t there 11?) CHECK THIS

Question 3

Why is Ch 4 most important to the job?

Answer 3

We use the info in Ch 4 daily. (but this ch is not more important for the exam)

Question 4

HO1 or DP1 does not cover water damage except..

Answer 4

from fire dept. hoses.

Question 5

Is Depreciation part of calculations in an HO2 or DP2?

Answer 5

No. (WHY?)

Question 6

Why are HO3’s preferred by wealthy people?

Answer 6

HO3’s: 1) covers everything 2) all physical risk covered (ie: HO1 or HO2 would not cover water damage coming from the roof if no visible opening, whereas HO3 will.)

Question 7

What aspect of the policy do you exercise if there’s no visible opening but there’s water damage coming from the roof? What’s covered in this scenario, and what’s not?

Answer 7

You exercise “All Physical Risk” in the HO3. The property would then covered, but personal property would not be.

Question 8

Is vandalism covered in an HO1?

Answer 8

No. (CHART SAYS OTHERWISE. CHECK THIS.)

Question 9

Is vandalism covered in an HO2 or DP2?

Answer 9

Yes

Question 10

What is another name for a rider?

Answer 10

Endorsement

Question 11

How many test questions are from Ch 4?

Answer 11

? CHECK!