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PFS Personal Lines > Types of Property Policies > Flashcards

Types of Property Policies Flashcards

1
Q

What do DWELLING POLICIES insure?

A
  • Dwelling only
  • contents only
  • or BOTH dwelling and contents
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2
Q

According to the LIBERALIZATION CONDITION, if an insurer makes a change to BROADEN COVERAGE in NEWLY ISSUED DWELLING POLICIES, how will that change affect policies ALREADY IN FORCE?

A

The change will apply AUTOMATICALLY.

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3
Q

What Homeowners policy form is known as a SPECIAL FORM?

A

HO-3 special form

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4
Q

What are the 2 LIABILITY COVERAGES included in Homeowners policy forms?

A

Coverage E – Personal Liability, and

Coverage F – Medical Payments to Others

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5
Q

An insured’s house becomes uninhabitable due to damage by a fire. As a result, the insured has to rent an apartment until repairs are made. Which TYPE OF COVERAGE under the DWELLING POLICY will pay for the expense of renting the apartment?

A

Coverage E – Additional Living Expenses

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6
Q

What are some of the EXCLUSIONS FROM COVERAGE in ALL of the HOMEOWNER’S FORMS?

A 
Land, 
structures used for business purposes, 
animals/birds/fish,
 aircraft, 
rented property, 
electronic data, 
and motor vehicles
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7
Q

What is the MAXIMUM NUMBER OF UNITS in RESIDENTIAL DWELLINGS insurable by a Dwelling policy?

A

Up to 4 units

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8
Q

WHERE can NATIONAL FLOOD INSURANCE be issued?

A

ONLY in participating, flood-prone areas

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9
Q

What type of coverage IS INCLUDED in HOMEOWNERS policies, but is NOT available in DWELLING policies?

A

Liability coverage

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10
Q

What TYPE OF PROPERTY can be covered under INLAND MARINE INSURANCE?

A

Any type of property that is PORTABLE ON LAND, as well as MEANS OF TRANSPORTATION AND COMMUNICATION

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11
Q

A BASIC DWELLING POLICY automatically provides coverage AGAINST WHAT?

A

Fire,
lightning, and
internal explosion

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12
Q

In general, what do Homeowners policies cover?

A

Dwellings used PRIMARILY as PRIVATE RESIDENCES

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13
Q

How are the DWELLING AND OTHER STRUCTURES covered in an HO-3 policy form?

A

On an OPEN-PERIL basis

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14
Q

What HO form insures a TENANT LIVING IN AN APARTMENT?

A

HO-4 (tenant broad form)

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15
Q

Which of the 3 DP forms provides the most limited coverage?

A

DP-1 (Basic)

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16
Q

What are the 3 TYPES OF COVERAGE available in DWELLING POLICIES?

A

Basic
broad
special

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17
Q

WHY does the HO-4 form NOT provide DWELLING COVERAGE?

A

HO-4 is written for a TENANT RESIDING in a RENTED DWELLING; the tenant DOES NOT OWN the dwelling.

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18
Q

What are ADDITIONAL COVERAGES available in Homeowners policies WITHOUT ADDITIONAL PREMIUMS? (name several)

A 
Debris removal
lawns/plants/shrubs
and trees, removal
reasonable repairs
and fire department service charge
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19
Q

What are EXTENDED COVERED PERILS on a BASIC DWELLING POLICY?

A

Windstorm or hail, explosion, smoke, aircraft and vehicles, riot or civil commotion, volcanic eruption, and vandalism and malicious mischief

WHARVES

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20
Q

Assuming the insurer and the insured agree on the amount payable for a loss covered under a dwelling policy, HOW SOON AFTER RECEIVING PROOF OF LOSS must the insurer PAY THE CLAIM?

A

60 days

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21
Q

If 3 volcanic eruptions happen within 48 HOURS, and EACH CONTRIBUTES to property damage, HOW MANY DEDUCTIBLES will apply in the dwelling policy?

A

1 deductible

all instances of volcanic eruptions that occur within a 72-HOUR period are considered 1 occurrence

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22
Q

What is MYSTERIOUS DISAPPEARANCE?

A

MISPLACEMENT or LOSS OF PROPERTY without knowledge as to the location, time and cause of the loss

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23
Q

Which DWELLING FORM is called the BROAD FORM?

A

DP-2

24
Q

When will DAMAGE TO THE INTERIOR OF THE BUILDING be covered under the FALLING OBJECTS PERIL in the BROAD FORM of the dwelling policy?

A

ONLY if the interior damage is a DIRECT RESULT of EXTERIOR DAMAGE from a FALLING OBJECT

25
Q

What are the 5 coverages of dwelling policies?

A 
Coverage A – Dwelling
Coverage B – Other structures
Coverage C – Personal property
Coverage D – Fair rental value
Coverage E – Additional living expenses
26
Q

In DWELLING POLICIES, within HOW MANY YEARS of a loss may an insured BRING A LAWSUIT against the insurer?

A

2 years

27
Q

Which DWELLING COVERAGE FORM(S) will pay for the REPLACEMENT COST of a dwelling?

A

DP-2 (Broad) and DP-3 (Special)

28
Q

In dwelling policies, what is the purpose of the AUTOMATIC INCREASE IN INSURANCE ENDORSEMENT that INCREASES THE AMOUNT OF INSURANCE by an ANNUAL PERCENTAGE?

A

To OFFSET THE EFFECTS of INFLATION

29
Q

Under Coverage C – Personal Property in the dwelling policy, WHEN will a GUEST’S PROPERTY BE COVERED?

A

ONLY when the property is AT THE INSURED LOCATION

30
Q

When a dwelling policy is CANCELLED for NONPAYMENT OF PREMIUM, the insurer must give NOTICE WITHIN HOW MANY DAYS OF THE CANCELLATION?

A

10 days

31
Q

WHICH dwelling policy coverage will insure a garage NOT ATTACHED to the primary insured dwelling?

A

Coverage B – Other Structures

32
Q

What is the PURPOSE of the NATIONAL FLOOD INSURANCE PROGRAM (NFIP)?

A

To FILL IN THE GAP in flood coverage left by PRIVATE INSURERS

33
Q

What does form HO-5 cover?

A

The DWELLING AND OTHER STRUCTURES, as well as CONTENTS AND PERSONAL PROPERTY

34
Q

Which dwelling form provides OPEN PERIL COVERAGE on THE BUILDING?

A

DP-3 (Special)

35
Q

What HO form covers CONDOMINIUM UNIT OWNERS?

A

HO-6 (condominium unit owners)

36
Q

What are the MAJOR COVERAGES included in a Homeowners policy?

A

Coverage A – Dwelling
Coverage B – Other Structures
Coverage C – Personal Property
Coverage D – Loss of Use

37
Q

An insured with a Homeowners policy has REMOVED PROPERTY FROM THE INSURED LOCATION to protect it from LOSS THAT COULD BE CAUSED BY A COVERED PERIL. The REMOVAL COVERAGE applies for HOW MANY DAYS?

A

30 days

38
Q

DP-3 (Special) is an OPEN-PERIL. What does that mean?

A

ALL PERILS are insured UNLESS SPECIFICALLY EXCLUDED.

39
Q

When would THEFT OF PROPERTY OF GUESTS AND RESIDENCE EMPLOYEES be covered under the HO-8 form?

A

ONLY while ON THE INSURED PREMISES

40
Q

What are some of the EXCLUSIONS found in ALL 3 dwelling forms?

A

Earth movement, water damage, power failure, neglect, war, nuclear hazard, intentional loss, freezing of plumbing, ordinance or law, and government action

41
Q

What HO form covers a HISTORIC HOME with REPLACEMENT COST MORE THAN THE MARKET VALUE?

A

HO-8 (modified homeowners)

42
Q

In order for forms HO-2, HO-3, and HO-5 to provide coverage, a dwelling MUST BE INSURED for AT LEAST WHAT PERCENTAGE OF REPLACEMENT COST?

A

80%

43
Q

How many OWNER-OCCUPIED RESIDENCES PER COVERED HOME are allowed by Homeowners policies?

A

An HO policy may insurer a property that has 1 to 4 family owner-occupied residences.

44
Q

How is the coverage USUALLY WRITTEN for HO-8 forms?

A

For the MARKET VALUE of the property

45
Q

In dwelling policies, ANY VOLCANIC ACTIVITY will be considered part of ONE OCCURRENCE if it all happens WITHIN HOW MANY HOURS?

A

72 hours

46
Q

What Homeowners policy form is known as CONTENTS BROAD FORM?

A

HO-4 contents broad form

47
Q

Under Coverage C of an HO-3 policy, what is the AMOUNT OF INSURANCE provided for PERSONAL PROPERTY?

A

At least 50% of the Coverage A limit

this applies to all policies except for HO-4 and HO-6

48
Q

Which DWELLING POLICY COVERAGE will provide protection for CONTENTS DAMAGED BY FIRE in an insured dwelling?

A

Coverage C - Personal Property

49
Q

Under what conditions can BROAD THEFT COVERAGE be ADDED TO A DWELLING POLICY?

A

If the insured is the OWNER-OCCUPANT of the dwelling

50
Q

Losses caused by VANDALISM AND MALICIOUS MISCHIEF are EXCLUDED FROM COVERAGE if a dwelling has been VACANT for HOW MANY DAYS?

A

60 days

51
Q

Coverage of dwelling policies

Coverage A –

A

Coverage of dwelling policies

Coverage A – Dwelling

52
Q

Coverage of dwelling policies

Coverage B –

A

Coverage of dwelling policies

Coverage B – Other structures

53
Q

Coverage of dwelling policies

Coverage C –

A

Coverage of dwelling policies

Coverage C – Personal property

54
Q

Coverage of dwelling policies

Coverage D –

A

Coverage of dwelling policies

Coverage D – Fair rental value

55
Q

Coverage of dwelling policies

Coverage E –

A

Coverage of dwelling policies

Coverage E – Additional living expenses

PFS Personal Lines (10 decks)

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