Module 2: Property and Casualty Insurance

Question 1

Peril’s of Basic Coverage (12)

Answer 1

• Fire
• Hail
• Vehicles
• Expulsion
• Lightning
• Riot
• Smoke
• Volcano
• Windstorm
• Aircraft
• Vandalism
• Theft

Question 2

Peril’s of Broad Coverage (Basic plus 6)

Answer 2

• Falling Objects
• Ice, Sleet, Snow weight
• Overflow from a stream
• Sudden accidental tearing apart, cracking, burning or bulging of a steam, hot water, air conditioning or auto fire sprinkler
• Freezing of plumbing, heading or A/C
• Sudden or accidental damage from an artifically generated electrical current

Question 3

Open-Peril’s Coverage Exclusions

Answer 3

• Earthquakes
• Flooding
• Neglect
• War or Nuclear
• Power Failure
• Intentional Loss

Question 4

Homeowners Coverage A

Answer 4

Insures the dwlling, including additions and other structures, also provides limited coverage on landscaping around the dwelling

Question 5

HO Coverage B

Answer 5

Detached Structures

Question 6

HO Coverage C

Answer 6

General Personal Property not specifically named within the contracts

Question 7

HO Coverage D

Answer 7

Loss-of-use coverage, includes expenses incurred while dwelling is uninhabitable due to damage caused by a covered peril

Question 8

HO Coverage E

Answer 8

Comprehensive Liability

Question 9

HO Coverage F

Answer 9

Medical Payments to others, claim expenses or damage to property of others

Question 10

HO-2 Form

Answer 10

Broad Form - provides broad coverage for the dwelling and personal property

Question 11

HO-3 Form

Answer 11

Coverage A+B - Open Peril
Coverage C - Broad Form
Coverage D - Open Peril

Question 12

HO-4 Form

Answer 12

Renters Insurance

Coverage C+D - Broad Form

Question 13

HO-5 Form

Answer 13

Comprehensive Form

Open Peril for all coverages

Question 14

HO-6 Form

Answer 14

Condo Owners Form

Broad Form for all and Coverage B included in Coverage A

Question 15

HO-8 Form

Answer 15

Modified form for specific risk, for those who live in an older home that has replacement cost exceeding market value. Covers basic peril’s only.

Question 16

General Exclusions

Answer 16

• The cost of bringing up a partially hurt room to code
• Earth Movement
• Water Damage - external water not covered
• Power Failure
• Neglect
• War or Nuclear Hazard
• Intentional Loss

Question 17

Coverage C Exclusions

Answer 17

• Items covered by other insurance
• Animals
• Motrized Land Vehicles
• Aircraft and parts
• Business books of accounts
• Credit Cards
• Property of other tenants
• Rental Property Items

Question 18

Flood Insurance

Answer 18

Primary provider is the government through the National Flood Insurance Program

Question 19

High Value Property Coverage

Answer 19

Tough to come by sometimes because the law of large numbers

Question 20

HO-15 Rider

Answer 20

Provides open-peril coverage to personal property

Question 21

Coinsurance Penalty Formula

Answer 21

amnt of ins/amnt of ins. required * loss - deductible

Question 22

ACV

Answer 22

Replacement cost minus depreciation

Question 23

Inflation Guard Endorsement

Answer 23

Automatically increases the dwelling coverage each year by an amount that is usually tied to an index.

Question 24

Personal Liability Exclusions (8)

Answer 24

• Business Pursuits
• Rental of Property
• Professional Liability
• Motor Vehicles
• Watercraft
• Aircraft
• Communicable Disease
• War, Sexual Abuse, Drug Use, Contract Liab, Workers Comp, Nuclear Peril

Question 25

Personal Injury Liability

Answer 25

libel, slander, defamation, alse arrest, false detention

Question 26

Personal Liability Umbrella Policy (PLUP)

Answer 26

Broadens overall coverage, still need underlying policies but adds more coverage.

Question 27

PLUP Exclusions

Answer 27

aircraft, watercraft, business pursuits, professional services, workers compensation, intentional harm

Question 28

Personal Auto Policy Factors (5)

Answer 28

- Age and Gender of Drive - Use of Vehicle - Type of Vehicle - Drivers Record - Credit

Question 29

Personal Auto Policy Loss Coverages (3)

Answer 29

- Legal Liability - Injury to the insured family - damage to the vehicle

Question 30

Parts of a PAP

Answer 30

``` Part A: Liability Coverage Part B: Medical Payments Part C: Uninsured Motorist Part D: Damage to your Auto Part E: Duties after accident Part F: General Provisions ```

Question 31

Type of Physical Damage Coverage

Answer 31

- Collision Damage - when auto hits something else | - Comprehensive Damage - when natures hits the auto

Question 32

PAP Endorsements (5)

Answer 32

"Coverage for toys" - Extended liability coverage - Named non-owner - Misc. Vehicle Endorsement - Motorhome endorsement - Special Antique Motor Vehicle Coverage

Question 33

Categories of Business Owners Coverage (7)

Answer 33

- Commercial Property - Boiler and Machinery - Transportation - Crime - Commercial Liab - Commercial Auto - Workers Comp and Employee Liability

Question 34

Business Owners Policy (BOP)

Answer 34

for smaller business owners who don't want a monoline insurance - Business Owners Common Policy Condidtions - Business Owners Property Coverage - Business Owners Cause of Loss and Exclusions - Business Owners Liability Coverage

Question 35

Commercial Package Policy

Answer 35

for larger businesses | - Generally includes coverage for buildings and content with general liability.

Question 36

Commercial Liability Insurance

Answer 36

- non auto, non employee injury liability comes in: - Employer Liability Insurance - Directors and Officers E+O INsurance - Employment Practices Liability Insurance

Question 37

Professional Liability Insurance

Answer 37

- Malpractice - Defense and Settlement - E+O Insurance (for financial harm)

Question 38

Social Insurance

Answer 38

- Workers Compensation Insurance | - Unemployment Insurance

Question 39

Assessed Value

Answer 39

- What the taxing authority places on the property