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New York Real Estate > Chapter 25 > Flashcards

Chapter 25 Flashcards

1
Q

Coverage against theft, burglary, vandalism and machinery damage needs what kind of insurance?

A

Casualty insurance

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2
Q

Which insurance covers the risk an owner assumes when the public enters the building?

A

Liability insurance

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3
Q

If someone’s falls in your property building, which insurance will help you?

A

Liability insurance

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4
Q

If you get robbed in your apartment, which insurance helps you?

A

Casualty insurance

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5
Q

How far back does a loss run schedule go?

A

5 years

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6
Q

The history of claims made against a commercial insurance policy.

A

Loss run schedule

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7
Q

What type of schedule allows insurers to assess how risky your business will be to insure?

A

Loss run schedule

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8
Q

What is a credit report most similar to?

A

Loss run schedule

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9
Q

What is a loss run schedule similar to?

A

Credit report

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10
Q

The report for “blank” includes dates, times, and description of the event.

A

Loss run schedule

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11
Q

If I walked into an insurance company office, and asked for insurance, what would they run on me to check me out to see if I have a lot of claims on me (similar to a credit report to get a mortgage loan)?

A

Loss run schedule

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12
Q

Loss run schedule allows insurers to do what?

A

Assess how risky your business is to insure. If you have a lot of claims, your interest rate will be high.

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13
Q

Is a loss run schedule for commercial or residential?

A

Commercial

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14
Q

Which insurance covers vandalism in your apartment?

A

Casualty

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15
Q

What are the 2 types of insurance for property’s?

A

Casualty and liability

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16
Q

School exam:

Who is going to ask the buyer to bring the certificate of insurance to the closing?

A

The mortgage broker / lender
ON SCHOOL TEST

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17
Q

What does business interruption insurance cover?

A

The loss of income

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18
Q

School exam and state:

Casualty insurance policies are usually written
A. On specific risks
b. For broad, inclusive coverage
C. To cover negligence
D. As multiperil policies

A

A , specific risks

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19
Q

Another word for property insurance (ask Toni about this)

A

Casualty insurance

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20
Q

Which event is an sample of static risk?
A. Market value of a home drops after a major employer leaves the community
B. A vandal causes extensive damage by breaking windows
C. The IRS changes deductibility of interest paid on mortgages
D. Market value of a home rises as interest rates drop and demand rises

A

B

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21
Q

Business interruption insurance covers
A. The loss of income
B. Damage to the premises
C. Injuries of people working on the property
D. Loss of value do to market trends

A

The loss of income

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22
Q

Excess liability coverage that provides coverage for those areas that would fall between the cracks with other policies is referred to as what?

A

Umbrella coverage

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23
Q

School and state:

Proof to a lender that a property is covered by insurance is provided through what?

A

Insurance certificate

24
Q

What would typically be the minimum insurance coverage required on an apartment building loan of $600,000?
A. $300,000
B. $420,000
C. 540,000
D. $600,000 or greater

A

D, $600,000 or greater

25
State: The most comprehensive homeowners insurance package is? A. Ho-1 B. Ho-2 C. Ho-3 D. Ho-4
Ho-3
26
A loss run schedule shows the history of a subjects A. Previous claims B. Premium payments C. Property ownership  D. Credit activity
Previous INSURANCE claims
27
What is one of the most important responsibilities of property ownership?
To protect the integrity of the property from all major insurable risk
28
What are the two types of business risk?
Dynamic and static
29
What kind of business risk is this: The uninsurable risk associated with changes in the economy, income taxes, and supply versus demand issues
Dynamic risk
30
Insurable risk associated with events such as accident liability, theft, fire, vandalism
Static risk
31
Why are you able to buy property insurance when it comes to static risk?
Because static risk pertains to insurable nature‘s the investor or homeowner is able to put a price to these items
32
Insurance coverage is required to protect what?
Ownership of the property as well as the asset
33
Do insurance agents work for an insurance broker?
Yes
34
What are the eight types of coverage for insurance?
Fire and hazard Business interruption Liability Casualty Surety bonds Umbrella coverage Boiler and machinery coverage Contacts and personal property
35
Does contents and personal property insurance coverage cover the building itself?
No
36
Which insurance coverage covers the loss of income that occurs if the property cannot be used to produce income?
Business interruption Ex: The building next to the twin towers getting ruined (interrupting the business) because of a terrorist attack
37
A type of excess liability coverage with two basic forms, personal and commercial. 
Umbrella coverage
38
The excess liability insurance coverage that covers areas and items that would fall between the cracks within other policies.
Umbrella coverage
39
The insurance coverage that covers an owner against financial loss resulting from an employees criminal acts or negligence while carrying out duties.
Surety bond
40
Does the PERSONAL umbrella coverage cover the individual and business activities?
No
41
Which comprehensive form is the most popular form for coverage?
Ho-3 And Ho-5
42
How do lenders receive proof of coverage in advance?
Submitting a certificate of insurance
43
the minimum coverage amount that is required by lending parties
An amount equal to or greater than the amount borrowed
44
Where mortgage financing is involved, who must bring proof of insurance when closing on a property?
The buyer
45
What does the coinsurance clause require in regard to homeowners insurance?
fire insurance on the property equal to at least 80% of the replacement cost of the dwelling 20% of the property value is the land itself
46
In regard to a co-op, the Cooperative corporation that owns the land is responsible for any repairs that are part of the real property. This generally covers anything inside the walls, floors, and ceilings at the shareholder unit. For this reason individual shareholders will only need to ensure what?
Their personal property or contents and in some cases obtain some form of liability insurance coverage
47
What is an example of an insurance policy that can be more difficult to obtain?
Flood insurance and in some cases, terrorism insurance. 
48
The deductible is born by who in an insurance policy?
The policyholder
49
True or false, and almost every case, low deductible amount result in higher premiums for that policy.
True
50
If a policy contains a $1000 deductible from any covered loss, and if they were covered amount under the policy is $10,000, what is the net payment to the insured?
$9000
51
Fire insurance is equal to at least “blank” % of the replacement cost of the dwelling
80%
52
State exam: Who is the leading provider of flood insurance?
FEMA (Federal emergency management agency)
53
Remember loss run schedule is previous Insurance claims NOT just previous claims
Okay
54
Which one is insurance, dynamic risk or static risk?
Static because (it can spark) you can put a number to it, unlike dynamic risk
55
Who is going to ask the buyer to bring a certificate of insurance to the closing?
The mortgage broker/lender
56
What type of coverage is it if terrorism occurs?
Business interruption

New York Real Estate (20 decks)

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