Chapter 4 - Dwelling Flashcards
(99 cards)
1
Q
Dwellings must be used principally for __________ dwelling purposes and cannot have more than __ dwelling units or more than __ roomers/boarders,
A
Residential
4
5
2
Q
Which of the following is not eligible for the Dwelling Program?
A. Dwelling includes a piano school
B. Dwelling has 4 apartment units
C. Dwelling has 5 roomers
D. Dwelling is located on farm property
A
D. Dwelling is located on a farm property
3
Q
What perils does the DP-1 (Basic Form) cover?
A
The insured perils are fire, lightning, and internal explosion.
4
Q
Which of the following Dwelling forms pays for losses to the dwelling on an actual cash value basis?
A. DP-4
B. DP-3
C. DP-1
D. DP-2
A
C. DP-1
5
Q
Which of the following Dwelling forms pays for losses to the dwelling on a replacement cost basis? Choose all that apply.
A. DP-4
B. DP-3
C. DP-1
D. DP-2
A
B. DP-3 & D. DP-2
6
Q
Which losses are covered by the DP-2 Form? choose all that apply. A. Constant or repeated leakage of water B. Freezing of HVAC C. Damage by Burglars D. weight of Ice, snow or sleet
A
B. Freezing of HVAC, C. Damage by Burglars, & D. weight of Ice, snow or sleet
are all covered by DP-2.
A is not because only accidental discharge or overflow of water or steam is.
7
Q
DP-2 Personal Property are paid on a ________ basis.
a. Actual Cash Value
b. Replacement Value
A
a. Actual Cash Value
8
Q
What type of peril coverage is DP-3 (broad form)?
A
DP-3 (broad form) coverage is provided on a open perils basis, meaning all except exclusions are covered.
9
Q
What losses does the DP-3 (broad form) specifically exclude under coverages A & B?
A
-Collapse
Freezing, thawing, or weight of water or ice on patios, fences, etc.
-Theft of property not part of a covered building or structure.
-Theft in or to a dwelling or structure under construction.
-Wind, hail, ice, snow, or sleet to outdoor radio and TV antennas and aerials, trees, shrubs, plants, and lawns.
-Vandalism and malicious mischief, theft or attempted theft, and any ensuing loss if the dwelling has been vacant for more than 60 consecutive days immediately before a loss.
-Constant or repeated seepage or leakage of water or steam over a period of time from within a HVAC, or automatic fire protective sprinkler system, or household appliance – these systems and appliances do NOT include sumps, sump pumps, mold, fungus, or wet rot unless resulting from accidental discharge or overflow of water or steam and is hidden from view.
-Any of the following: wear and tear; deterioration; mechanical breakdown; smog, rust, or corrosion; smoke from agricultural smudging or industrial operations; pollution; settling, cracking, bulging, or expansion of foundation, walls, floors, pavement, or patios; and birds, vermin, rodents, insects, or domestic animals.
-Theft of property that is part of the dwelling or other structures is covered as long as the dwelling or other structures have not been vacant for more than 60 days.
-Theft of contents is still excluded unless coverage has been added by an endorsement.
10
Q
DP-3 (Special Form) has what type of peril coverage on dwelling and other structures?
A
Open perils coverage
11
Q
DP-3 (Special Form) has what type of peril coverage for personal property?
A
Named Perils
12
Q
What Dwelling Policy form does this occurrence match?
A fire breaks out in the kitchen of the insured property. After proof of loss, the insurer pays the actual cash value for damages to the dwelling.
A
DP-1 (Basic Form)
13
Q
What Dwelling Policy form does this occurrence match?
The insured property was damaged when someone drove into the garage. After proof of loss, the insurer pays the actual cash value for damages to the dwelling.
A
DP-1 (Basic Form) with Extended Coverage (EC).
14
Q
What Dwelling Policy form does this occurrence match?
After an ice storm, the pool on the insured property was damaged. The insurer pays the claim on a replacement cost basis.
A
DP-3 (Special Form)
15
Q
Which of the following losses would be covered under all Dwelling forms?
A. Damage caused by subsidence of land the dwelling is sitting on
B. Fire damage to building materials and supplies that are located on the insured premises
C. Damage caused by a sewer or drain backup
D. Collapse due to settling
A
B. Fire damage to building materials and supplies that are located on the insured premises
***Loss by fire is covered under all forms.
16
Q
What Dwelling Policy form does this occurrence match?
While the insured property was unoccupied, it was burglarized. The insurer pays to replace the broken window the burglar used for entry, but not for the personal property stolen.
A
DP-2 (Broad Form)
17
Q
What does Coverage A protect?
A
Dwelling & attached structures
18
Q
Coverage E
A
Additional living expenses incurred when a covered loss makes the unit uninhabitable
19
Q
What does Coverage B protect?
A
Other non-attached Structures
shed, fence, unattached garage, ect.
20
Q
What does Coverage C protect?
A
Personal Property
21
Q
What does Coverage D protect?
Dwelling Coverage
A
Fair Rental Value
22
Q
What does Coverage E protect?
Dwelling Coverage
A
Additional Living Expenses
23
Q
What does Coverage A apply to? More than one may apply.
- attached garage
- deck
- breezeway
- backyard
A
Coverage A applies to 1,2 & 3. It covers structures attached to the dwelling, but not land the dwelling is on.
24
Q
What does Coverage B apply to? Select all that apply.
- Shed
- Fence
- Utility Line
- Tractor
A
Coverage B applies to 1, 2 & 3. Farm equipment is not covered.
**Coverage B covers structures NOT attached to dwelling, no coverage for structures rented to others
25
Property not included in Coverage C:
- Accounts, bank notes, coins, and currency
- Birds, animals, and fish
- Aircraft and watercraft other than rowboats or canoes
- Motor vehicles other than those used to service the described location or to assist the handicapped
- Hovercraft
- Data, including books of account, drawings, paper records, computers, and their equipment
- Credit cards, funds transfer cards, and other access devices
- Water or steam
- Grave markers
26
Coverage C applies to which persons?
a. Insured
b. Renter of Insured
c. Insured Relative
d. Insured & Resident Relative
d. Insured & Resident Relative
27
Coverage C applies to which persons?
a. Insured
b. Renter of Insured
c. Insured Relative
d. Insured & Resident Relative
d. Insured & Resident Relative
28
Is gold covered under coverage C?
No. Gold, silver, money, and alike things are not covered.
29
What coverage insures additional expenses?
Coverage E
| hotel stay, pet boarding, eating out - due to peril that makes dwelling not fit for normal use
30
Coverage D
Fair rental value of that part of the described location that is rented to others if the rental unit is unfit for normal use
31
Do the dwelling forms include theft coverage?
No, an endorsement must be added if theft protection is wanted/needed.
32
Coverage A
Dwellings and structures attached to the dwelling
33
Coverage C
Personal property usual to the occupancy of a dwelling
34
Other Coverages - Debris Removal
The policy pays the insured’s reasonable expenses for the removal of debris of covered property if the property is damaged by an insured peril. Debris removal expense is included in the limit of insurance that applies to the damaged property.
35
Improvements, Alterations, and Additions
If the insured is a tenant, he or she may use up to 10% of the Coverage C limit of insurance for a covered loss to improvements, alterations, and additions made or acquired at the insured’s expense to that part of the described location only occupied by the named insured.
In the DP–1 form, coverage is included in the limit of insurance; in the DP–2 and DP–3 forms, it’s additional insurance.
36
Worldwide Coverage
The insured may use up to 10% of the Coverage C limit of liability for a covered loss to property insured under Coverage C while it’s located anywhere in the world. This coverage does NOT apply to rowboats, canoes, or property owned by guests or servants. It is included in the Coverage C limit of liability.
37
Reasonable Repairs
If covered property is damaged by an insured peril, the policy will pay the reasonable costs incurred by the named insured for necessary measures taken to protect covered property from further damage. This is not additional insurance and coverage does not increase the limit of insurance that applies to the covered property.
38
Property Removed
If property is being removed from the described location to protect it because it is endangered by a covered peril, coverage is provided for direct loss by any peril while removed. Under the DP–1 form, coverage is provided for 5 days while removed; under the DP–2 and DP–3 forms, coverage is provided for 30 days while removed.
This coverage does not increase the limit of insurance that applies to the property being removed.
39
Trees, Shrubs, and Other Plants
Under the DP–2 and DP–3 forms, coverage is provided for trees, shrubs, plants or lawns on the described location for loss caused by the following perils: fire or lightning; explosion; riot or civil commotion; aircraft; vehicles not owned by the named insured or by a resident of the described location; vandalism or malicious mischief; and damage caused during a burglary or an attempted burglary. This coverage is not included in the DP–1 form.
Damage to trees, shrubs, plants, or lawns caused by the following perils are not covered: wind; hail; weight of snow, ice or sleet; and loss by theft. The limit of insurance for this coverage is up to 5% of the Coverage A limit, with a maximum of $500 applying to any one tree, shrub, or plant.
This is additional coverage.
40
The limit of insurance for the Other Coverage Trees, Shrubs, and Other Plants is provided at which percentage of the Coverage A limit?
A. 10%
B. 5%
C. 50%
D. 100%
B. 5%
***This coverage is also in addition to the Coverage A limit.
41
What is Vandalism & Malicious Mischief (VMM) coverage?
It covers loss due to vandalism or malicious mischief, if a property is vacant for more than 60 days this coverage is excluded.
42
Can mobile homes be considered Dwellings? If so, how?
Yes, if they are permanently affixed to a foundation.
43
Fire Department Service Charge
Under each of the dwelling forms, the policy will pay up to $500 for the named insured’s liability assumed by contract or agreement for fire department charges incurred when the fire department is called to save or protect covered property from an insured peril. Coverage does not apply if the property is located within the limits of the city, municipality, or protection district furnishing the fire department response. Essentially, coverage is provided for services provided by an assisting fire department.
This is additional insurance and the policy deductible does not apply.
44
DP-2 property and other structure losses are paid on a _____.
a. Actual Cost Value
b. Replacement Value Basis
b. Replacement Value Basis
45
Collapse
“Collapse” is defined as the abrupt falling down or caving in of a building, or any portion of a building, but only if it cannot be occupied for its current intended purpose. If a building, or any portion of a building, is in danger of falling down or caving in — or if it’s standing, it is NOT in a state of collapse.
Under the DP–2 and DP–3 forms, coverage is provided for direct physical loss to covered property involving collapse of a building, or any part of a building, but only if the cause of loss is: any of the Coverage C named perils; hidden decay; hidden insect or vermin damage; weight of contents, equipment, animals or people; weight of rain which collects on the roof; and use of defective materials or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling, or renovation.
Collapse does not include settling, cracking, shrinking, bulging, or expansion. This coverage does not increase the limit of insurance and is NOT provided by the DP–1.
46
Glass or Safety Glazing Material
Under the DP–2 and DP–3 forms, coverage is provided for the breakage of glass or safety glazing material if it is part of a covered building, storm door, or storm window. Coverage is provided for direct loss caused by earth movement and the pieces, fragments, or splinters of broken glass from the glass or safety glazing material.
No coverage applies if the dwelling was vacant for 60 consecutive days immediately before the loss. The vacancy provision doesn’t apply to losses caused by earthquake. Loss for damage to glass will be settled on the basis of replacement with safety glazing materials when required by ordinance or law.
Coverage doesn’t increase the limit of liability and is NOT provided by the DP–1 form.
47
Which of the following does not apply to the Other Coverage Glass or Safety Glazing Material?
A. No coverage applies if a dwelling is vacant for 60 consecutive days before the loss
B. May be settled on a replacement cost basis
C. Applies to all Dwelling forms
D. Covers glass that is part of a covered structure
C. Applies to all Dwelling forms
***Coverage is provided under only the DP-2 and DP-3 forms.
48
Ordinance or Law
This is an additional coverage for DP-2 and DP-3. It applies to increased costs incurred by the named insured due to the enforcement of any ordinance or law that requires or regulates the construction, demolition, remodeling, renovation, or repair of a covered building or structure because of a covered loss.
Up to 10% of the Coverage A limit of liability may be used for this coverage and, if the insured is a tenant, up to 10% of the limit of insurance that applies to improvements, alterations, and additions may be used. Some or all of the limit of insurance for this coverage may be used to pay for the increased costs incurred by the named insured to remove debris resulting from the construction, demolition, remodeling, renovation, repair, or replacement of covered property.
This is additional insurance, and NO coverage is provided for any loss in value of a building or structure due to the enforcement of any ordinance or law or costs incurred by ordinances that require pollution clean up, removal, treatment, etc.
49
General Exclusions
The dwelling forms do not insure for loss caused directly or indirectly by any of the following — regardless of any other cause or event that contributes concurrently or in any sequence to the loss:
Earth Movement – Earthquake, including land shock waves or tremors before, during or after a volcanic eruption; landslide; mudslide or mudflow; subsidence or sinkhole, earth sinking, rising, or shifting. Coverage is excluded whether the earth movement is caused by human, animal, or natural forces. If a direct loss by fire or explosion ensues from earth movement, it is covered.
Water Damage – Flood, surface water waves, tidal water, overflow of a body of water, water or waterborne material that backs up through sewers or drains or overflows from a sump or sump pump, water or waterborne material below the surface of the ground — including water that exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool, or other structure (such as basement walls). If a direct loss by fire or explosion results from water damage, it is covered.
50
The Earth Movement exclusion contains all of the following perils, except:
A. Earthquake
B. Landslide
C. Mudflow
D. Explosion
D. Explosion
***If a direct loss by fire, explosion, or glass breakage occurs as a result of earth movement, the policy will cover the ensuing damage.
51
Neglect
The insured’s neglect to use all reasonable means to save and preserve property at and after the time of a loss.
52
War
War includes undeclared war, civil war, insurrection, rebellion, revolution, or any warlike act by a military force. The discharge of a nuclear weapon will be deemed a warlike act, even if accidental. War also includes any consequence of the preceding.
53
Nuclear Hazard
Any nuclear reaction, radiation, or radioactive contamination — whether controlled or uncontrolled, except that fire resulting from the nuclear hazard is covered.
54
Non-concurrent Exclusions
The following exclusions apply, however, if an ensuing loss is otherwise covered by the policy, it will not be excluded: weather decisions; acts or decisions, including the failure to act or decide, of any person, group, organization, or governmental body; faulty, inadequate, or defective planning, zoning, development, surveying, sighting, design, workmanship, repair, construction, renovation, remodeling, grading, compaction, materials used in repair, and maintenance.
55
What type of power failure is excluded under all of the Dwelling forms?
A. Power failure that causes a fire to a neighboring property
B. Power failure that causes a fire on the described location
C. Power failure that occurs on the insured premises
D. Power failure that occurs off the insured premises
D. Power failure that occurs off the insured premises
***Losses caused by power failure off the insured premises is not covered, but if a covered peril ensues as a result of the power failure, the damage from that ensuing loss is covered.
56
Under a DP-2 or DP-3 which would not be covered?
a. Explosion
b. Fire
c. War
d. Falling Objects
c. War
57
Under a DP-2 or DP-3 what would be covered?
a. Flood
b. Earth Movement
c. Lightning
d. Intentional Loss
c. Lightning
58
Under a DP-2 or DP-3 what would be excluded from coverage? Check all that apply.
a. Nuclear Hazard
b. Lightning
c. Burglar Damage
d. Flood
e. Earth Movement
f. Falling Objects
a. Nuclear Hazard, d. Flood & e. Earth Movement are exclusions.
59
Automatic Increase in Insurance Endorsement (DP 04 11)
An automatic pro rata increase in the Coverage A and B limits of insurance is applied by the percentage shown on the endorsement.
This endorsement is used to help offset inflation and may also be referred to as the Inflation Guard Endorsement.
60
Flip to see an example of Automatic Increase in Insurance Endorsement (Inflation Guard Endorsement)
A dwelling policy is issued January 1 with a dwelling coverage limit (Coverage A) of $200,000. The policy has an Automatic Increase/Inflation Guard endorsement for 5%. If a loss occurs 6 months later, the amount of coverage is now $205,000. The annual increase would be $10,000 for the year, therefore, the increase for 6 months is $5,000. When the policy renews, the increased dwelling coverage becomes $210,000 and the 5% inflation protection will be based on the increased limit (not $200,000) for the following year.
61
Coverage C applies to _______ and _________ property usual to the occupancy as a dwelling if it is owned by the insured or by members of the insured’s family who reside with the insured
Household & Personal
62
The Automatic Increase in Insurance endorsement typically increases Coverages A and B by which of the following?
A. Flat amount
B. $10,000
C. $23,500
D. A percentage designated on the endorsement
D. A percentage designated on the endorsement.
***The increase is applied by the percentage shown on the endorsement annually.
63
What are the 2 types of endorsements that can be added for theft coverage?
Broad Theft Coverage – Provides insurance for the perils of theft, attempted theft, and vandalism or malicious mischief that results from theft or attempted theft. (owner)
Limited Theft Coverage – Provides insurance for the perils of theft, attempted theft, and vandalism or malicious mischief that results from theft or attempted theft. (tenant)
64
All of the following statements are TRUE about the Broad Theft Coverage endorsement, EXCEPT:
A. Theft and attempted theft are covered
B. Both on- and off-premises coverage is available
C. It does not apply to the DP-1
D. Resulting damage caused by malicious mischief and vandalism is covered
C. It does not apply to the DP-1
***The Theft Coverage endorsement can be added to any form, including the basic DP-1.
65
Dwelling Under Construction Endorsement (DP 11 43)
This endorsement is needed because eligibility for the dwelling property coverage requires insured dwellings to be occupied for residential purposes. Dwellings under construction are not occupied and, when this endorsement is added, the named insured agrees to advise the insurer when construction is completed.
66
Personal Liability Supplement
Because the dwelling forms only provide property coverage, if personal liability coverage is desired, coverage must be secured under another policy or an endorsement must be attached to the dwelling policy.
67
How long after an occurrence has happened on an insured property can medical payments to others be made?
within 3 years
68
The Personal Liability endorsement includes each of the following additional coverages, except:
A. First aid expenses
B. Debris removal
C. Claims expenses
D. Damage to the property of others
b. Debris Removal
***Debris removal is not covered under a personal liability supplement.
69
The example below goes with what endorsement?
"The insured was away from home, and their laptop was stolen."
Broad Theft Coverage
70
The example below goes with what endorsement?
"The insured selected this endorsement to help with inflation protection, which is applied annually based on a percentage shown on the endorsement"
Automatic Increase in Insurance
71
On a DP-1 policy if additional premium is paid for Extended Coverage (EC), the following perils are also included:
- wind storm or hail
- explosion
- riot or civil commotion
- aircraft, vehicles
- smoke
- volcanic eruption
* *Vandalism & Malicious Mischief can be specifically added
72
The example below goes with what endorsement?
"The insured's television was stolen while the tenant who rents the dwelling was away."
Limited Theft
73
Coverage B
Other structures separated or detached from the dwelling by clear space, a fence, or a utility line
74
The example below goes with what endorsement?
"A visitor slips and falls on the insured property. The insurer provides reasonable medical expenses for the injury."
Personal Liability Supplement
75
Power Failure
The failure of power or other utility service if it takes place off the described location. Power failure occurring on the described location is covered
76
The example below goes with what endorsement?
"The dwelling is being remodeled and is unoccupied for over 60 days. After major storm damage, the insurer pays the claim based on the value it would have had after completion."
Dwelling Under Construction
77
Under the Basic Dwelling Form, when is damage caused by vandalism included as covered peril?
A. When the VMM Endorsement is added to the DP-1
B. This coverage is not available in the Basic Dwelling Policy
C. When under the unendorsed DP-1
D. When the Extended Coverage perils are added to the DP-1
A. When the VMM Endorsement is added to the DP-1
***The DP-1 provides coverage against three perils: fire, lightning, and internal explosion. The Vandalism and Malicious Mischief Endorsement adds coverage for damage caused by vandalism.
78
Which of the following is false regarding the Broad Theft Endorsement under the Dwelling Policy?
A. It includes vandalism resulting from theft
B. It applies only to owner-occupied structures
C. It may be added to any of the Dwelling forms
D. Only on-premises coverage is available
D. Only on-premises coverage is available
***The Broad Form Theft Endorsement is attached to owner-occupied Dwelling policies to provide theft coverage for the owner-occupant's personal property. On-premises and off-premises coverage is available.
79
Policyholder M insures an owner-occupied, single-family residence under a Special Form Dwelling Policy (DP-3) with a limit of $100,000. If the dwelling is damaged in a fire, what policy coverage will pay for M's extra costs to stay in a motel and board M's pets while the fire damage is being repaired?
A. Coverage E
B. Coverage B
C. Coverage D
D. Coverage C
A. Coverage E
***Coverage E pays for the necessary increase in living expenses incurred by the insured if the building is rendered unfit for its normal use.
80
Under the Dwelling Broad Form, losses to an unattached garage are paid on which basis?
A. Actual Cash Value
B. Functional Replacement Cost
C. Agreed Value
D. Replacement Cost
D. Replacement Cost
***The DP-2 provides for losses to the dwelling and other structures are paid on a replacement cost basis.
81
Dwellings can not be located on ____.
Farms
82
All of the following are true regarding the Broad Theft Endorsement on a Dwelling Policy, except:
A. Only on-premises coverage is available
B. It applies only to owner-occupied structures
C. It also includes vandalism resulting from theft
D. It may be added to any of the Dwelling forms
A. Only on-premises coverage is available
***The Broad Theft Endorsement is attached to owner-occupied Dwelling policies to provide theft coverage for the owner-occupant's personal property. On-premises and off-premises coverage is available.
83
Under the Dwelling Policy, household and personal property, including property in transit between the insured's old and new residences, are covered under:
A. Coverage C
B. Coverage B
C. Coverage A
D. Coverage D
A. Coverage C
***Coverage C is the coverage for personal property. 10% of the Coverage C limits apply to the insured's personal property away from the premises anywhere in the world.
84
Which DP form does not cover burglar damage?
A. Special Form (DP-3)
B. Basic Form (DP-1)
C. None of the Dwelling Policies cover damage done by burglars
D. Broad Form (DP-2)
B. Basic Form (DP-1)
***Damage by burglars is covered only in the broader Forms DP-2 and DP-3.
85
Which statement is true regarding the Personal Liability Supplement to the Dwelling policy?
A. The supplement provides coverage for claim expenses
B. The supplement covers damage to the insured's personal autos
C. The supplement covers professional services rendered by the insured
D. The Limit of Liability is the same as the Coverage A amount
A. The supplement provides coverage for claim expenses
***The liability supplement provides coverages for claim expenses, first aid expenses, and damage to the property of others. Limits of liability are provided under Coverage L and Coverage M, to whatever limits the insured wishes to be indemnified for. Professional services are excluded.
86
Under a Dwelling Policy, the coverage extension of Debris Removal will pay for:
A. The removal of the debris from an automobile accident on the insured location
B. The removal of debris resulting from demolition required by an ordinance or law
C. The removal of the debris caused by an insured peril
D. The removal of debris resulting from the action of a civil authority
C. The removal of the debris caused by an insured peril
***This coverage pays the insured's reasonable expenses for the removal of debris of covered property if the property is damaged by an insured peril.
87
Which of the following is TRUE of the Dwelling Under Construction Endorsement of a Dwelling Policy?
A. The insured has up to 90 days to notify the company that the dwelling is occupied
B. The liability limit is a percentage of the finished building's value
C. The insurer does not need to be notified of building completion
D. The premium is a percentage of the Coverage A limit
B. The liability limit is a percentage of the finished building's value
***The limit of insurance at any given time prior to completion is a percentage of the Coverage A limit that equals the proportion the actual value bears to the value on the date of completion. The insurer must be notified of completion so coverage may be adjusted.
88
Under all the Dwelling Forms, the dwelling described in the Declarations is covered under:
A. Coverage C
B. Coverage A
C. Coverage B
D. Coverage E
B. Coverage A
89
How much will the Dwelling Policy pay for additional living expenses after a dwelling insured for $100,000 under Coverage A is damaged by a fire?
A. $30,000
B. $10,000
C. $20,000
D. $50,000
C. $20,000
***The Coverage E - Additional Living Expense limit of insurance is 20% of the Coverage A limit.
90
Flip over for example of Coverage A limit in a DP-1
The Coverage A limit on an insured dwelling is $100,000. In a DP–1, a detached garage would be covered for up to $10,000; however, the most the policy would pay for loss to both the dwelling and garage is $100,000. Under the DP–2 and DP–3 forms, the garage would be covered for up to $10,000 and this would be in addition to the $100,000 of coverage provided for the dwelling.
91
Which one is NOT an endorsement?
a. Broad Theft
b. Collapse
c. Automatic Increase in Insurance
d. Limited Theft
b. Collapse
**Collapse is an Other Coverage, not an Endorsement
92
Bodily Injury and Property damage only cover...
a. insureds injuries or damage
b. others injuries or damage
b. others injuries or damage
93
Which form would not insure against external explosion?
A. Unendorsed DP-1
B. DP-3
C. Endorsed DP-1
D. DP-2
C. Endorsed DP-1
94
Which of the following is true regarding Coverage A under the Dwelling Policy?
A. Coverage for land is restricted to the land upon which the dwelling is sitting
B. Outdoor equipment is not covered
C. The policy does not include coverage for wind loss of television antennas
D. Coverage A includes a detached carport
C. The policy does not include coverage for wind loss of television antennas
***Wind loss of television antennas is so common the coverage is available only through attachment of an endorsement providing this coverage for an additional premium.
95
Which of the following is not covered under the Dwelling Broad Form (DP-2)?
A. Artificial electric current
B. Falling objects
C. Accidental discharge
D. Theft
D. Theft
***Theft coverage is only available by endorsement.
96
Under a Dwelling Policy, which is correct regarding coverage of trees, shrubs, or plants?
A. Theft of shrubs and plants is covered
B. Damage by wind, hail, weight of ice, snow, or sleet is not covered
C. The limit of liability is $1,000 for any tree, shrub, or plant
D. All vehicle damage to trees, shrubs, or plants is covered
B. Damage by wind, hail, weight of ice, snow, or sleet is not covered
***Damage to outdoor plants by forces of nature other than lightning are so common that such damage is considered uninsurable. Coverage for certain other perils is provided, with a limit of $500 for any one tree, shrub, or plant.
97
Coverage D of the Dwelling Policy provides coverage for:
A. Fair Rental Value
B. Other Structures
C. Trees, Shrubs, and Other Plants
D. Additional Living Expenses
A. Fair Rental Value
98
All of the following are true regarding Dwelling Policy eligibility, except:
A. Some incidental business occupancies are permitted
B. Mobile homes are eligible if written on a DP-1
C. The dwelling must be used for seasonal or secondary purposes
D. Farm dwellings are not eligible
C. The dwelling must be used for seasonal or secondary purposes
***The dwelling must be used principally for residential dwelling purposes. Dwellings may be occupied on a seasonal or secondary basis, but it is not required.
99
Which of the following statements about the Dwelling Special Form is true?
A. Losses to the dwelling are paid on an actual cash value basis
B. It will automatically cover the theft of contents
C. It will cover the cracking of walls
D. Contents are covered on an actual cash value basis
