Property Chapter 3: Personal Lines Homeowners Policy

Question 1

All HO policies

Answer 1

package policies combining property and liability coverages.

Question 2

Limit of Liability

Answer 2

The most a policy will pay under the liability section

Question 3

Insured Def.

Answer 3

includes residents of a household who are relatives, or any other person under age 21 who is in the insured’s care.

Question 3

All HO excludes (3)

Answer 3

exclude coverage for flood, landslides or mudslides.

Question 4

The HO policy does not cover

Answer 4

cover theft of animals, birds or fish.

Question 5

Personal injury liability is utilized for (5):
however, what is the restriction and can it be added?

Answer 5

false arrest,
libel,
slander,
defamation,
invasion of privacy
Not automatically covered on an HO,
Can be added by endorsement for an additional premium.

Question 6

Section II (liability)

Answer 6

provides additional coverage for damage to the property of others up to $1,000 per occurrence.

Question 7

An HO policy will provide coverage

Answer 7

for contents anywhere in the world, including theft.

Question 7

An HO policy will not cover

Answer 7

the property of a boarder/renter, but will cover the property of a guest or residence employee.

Question 8

An HO policy written on a dwelling under the course of construction

Answer 8

Will not be cover theft

Question 9

Medical Coverage (8)

Answer 9

cover charges for medical,
surgical, x-ray,
dental,
ambulance,
hospital,
nursing,
prosthetic devices
funeral services.

Question 10

Medical payments never apply

Answer 10

to regular members of the household.

Question 11

The bankruptcy of an insured does not

Answer 11

does not relieve the insurer of their obligations under the policy.

Question 12

Claims resulting from the enforcement of an ordinance or law are not covered by most property policies. However,

Answer 12

limited coverage is provided as additional coverage.

Question 13

Stated in the insuring agreement includes:

Answer 13

The insurer’s duty to defend a lawsuit

Question 14

What covers bodily injury to a third party.

Answer 14

HO liability

Question 15

If the insurer cancels an HO policy,

Answer 15

they must send advance written notice to both the mortgage company and the named insured.

Question 16

An HO policy will not pay

Answer 16

the cost of defense on an excluded claim.

Question 17

An HO policy covers contents in full while moving

Answer 17

for up to 30 days.

Question 18

HO Coverage C will not cover

Answer 18

property of a roomer, boarder or other tenant unless related to the insured.

Question 19

Damage due to rain is not covered on a property policy unless

Answer 19

the roof or wall was first damaged by wind or hail, allowing the rain to enter.

Question 20

Property policies do not cover damage

Answer 20

to motorized vehicles, other than those used to maintain the premises (e.g. riding lawn mowers).

Question 21

Personal liability and medical coverage cover

Answer 21

the insured’s activities both on and off the premises.

Question 22

Loss of use covers only

Answer 22

additional living expenses.

Question 23

The insurer's duty to defend a lawsuit ends

Answer 23

when the amount paid out for damages equals the limit of liability.

Question 24

Who is referred to as a residence employee?

Answer 24

A person who is hired to maintain a premises

Question 25

HO-2

Answer 25

named peril on both the dwelling and contents.

Question 26

HO-3

Answer 26

all-risk on a dwelling, but named peril on its contents.

Question 27

HO-3 special form policy: what kind of theft is covered

Answer 27

theft of personal property of a resident employee is covered.

Question 28

HO-4 Property Policies issued to whom, to cover caused by what perils (3)?

Answer 28

property policies issued to tenants to cover contents extend coverage to losses caused by a covered peril to: improvements, alterations and additions made to the described location at the tenant's expense.

Question 29

HO-6

Answer 29

contents coverage is named perils.

Question 30

HO-6 (unit-owners form) does not cover

Answer 30

does not cover common area buildings.

Question 31

HO-8

Answer 31

created specifically for older homes.