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Flashcards in Insurance 4A Deck (27):

The HO-6 policy provides full replacement cost coverage if it is rendered a total loss by fire, EXCEPT:

The structure portion occupied by the insured as a residence.


Which of the following is included in the declarations page of the homeowner policy?

The address of the insured location


In New Hampshire, if a dwelling or homeowner policy is cancelled or non renewed by the insurer, the insurer is required to send advance notice to the insured at least:

45 days in advance


Who pays for the services of the arbitrators under uninsured motorist coverage?

both the insured and the insurer split the cost.


Fit and Trim finds replacement treadmills that generate and actually return energy to the power grid. The cost is 15% higher than standard equipment. Which of the following, if any, would pay the increase?

Increased cost of loss and related expenses for "green" updates.


Mr. Owens owns 50% of a building that is worth $600,000 and is insured for at total of $500,000. What is the maximum that Mr. Owens can collect in case of a total loss to the building?

$500. He has an insurable interest of 50% and can only collect $250 or half.


Which of the commercial causes of loss forms provide theft coverage?

The special form


What type of coverage is included in a personal auto policy without having to issue an endorsement?

Transportation expenses, are part of the physical damage coverage.


George Wilson has a personal auto policy. Select the coverage that would apply when a deer leaps onto Mr. Wilson's car and causes extensive damage.

Contact with birds and animals is considered to be Comprehensive,


You're at a party and run out of soft drinks. Your car is at the front of the driveway so you borrow a friend's car which is parked at the end of the driveway nearest the street. From your coverage perspective this car is known as a:

Non-owned auto, coverage is provided by the personal auto policy on an excess basis.


The commercial auto policy form provides for "worldwide liability coverage" for private passenger autos that the insured:

Hires, leases, rents or borrows without a driver.


In legal terms, the written explanation of how a loss occurred is called a:



If the company decides to rebuild or repair the property destroyed or injured, it must begin to do so within _____ days after adjusting the loss, and must prosecute the work with reasonable diligence until it is completed.



With Commercial Property Insurance, replacement cost coverage may be written for:

Buildings, personal property of the insured and others.


Robert boards his dog at a kennel while he is on vacation. While at the kennel, the dog bites a meter reader. How would Robert's HO-3 policy respond to the meter reader's request for repayment of his emergency room costs?

The insurer will pay under the Medical Payments to Others provision.


How would an insured’s PAP coverage apply when renting a private passenger auto while on vacation when they have purchased insurance coverage from the rental company?

The insureds PAP provides excess liability coverage when the insured drives non-owned autos


Steve has removed the rear seat in the company car and installed stereo equipment and two speakers. The maximum the physical damage will pay for damage to the items in an accident is:



Name a loss that may not be determined by an adjuster?

use of a rental car


Unless otherwise provided by law, every insurer must establish procedures to commence an investigation of any notice of a claim filed by an insured or claimant not later than _____ working days from receipt of the notice of a claim.



An insured suffers a partial fire loss to his residence. Under the HO-3 policy what coverage is available for temporary, alternate living quarters?

Loss of use expenses


To satisfy the financial responsibility law in New Hampshire the owner of a vehicle must carry limits of:



When an insured is fulfilling the duty of proving a loss by taking an inventory of the damaged property, who pays the expenses incurred by the insured?

The insured


What is the loss assessment limit provided by Section II of the homeowner policy?



Dan parks his car on a hill in front of his house. His 7-year-old daughter gets into the car and releases the parking brake. The car rolls down a hill and does $2,000 damage to the property of others. What part of his policy might respond to pay the claim?

Property damage


Under which of the following losses would the basic personal auto policy not provide transportation expenses?

The engine dies in the insureds car and he must rent a car.


When a motor vehicle is a total loss, what method is used to determine its value?

Fair value of the car in the local area.


Which of the following statements is true regarding personal auto coverage?

Medical Payments coverage pays the insured and others without regard to fault