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P&C Insurance > Unit 6 Dwelling Insurance > Flashcards

Unit 6 Dwelling Insurance Flashcards

1
Q

True or false, dwelling insurance covers theft and personal liability without endorsements

A

False

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2
Q

Are farm dwellings elligible for dwelling insurance?

A

No

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3
Q

What is covered by Dwelling coverage in A, B, C, D, and E?

A

A. Dwelling
B. Detached/appurtenant structures
C. Personal property (on premises) (10% for property off premises)
D. Fair rental value
E. Additional living expenses

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4
Q

True or false, regarding Dwelling policies A-E, the insured must purchase/pay for all of them

A

False, it’s menu style

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5
Q

Do dwelling policies insure businesses?

A

No

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6
Q

Under coverage B, can the appurtenant structures be used for commercial, manufacturing, or farming purposes?

A

No

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7
Q

Under coverage C, personal property not covered includes ____: (5)

A
  1. Animals
  2. Aircraft
  3. Motor vehicles
  4. Boats (with the exception of row boats or canoes)
  5. Accounts, bills, currency, evidence of debt, money, and securities
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8
Q

Coverage C insures personal property located off the premises up to ____% of the loss for covered perils

A

10%

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9
Q

Coverage D: ____% of the insurance on the dwelling is available for this coverage

A

20%

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10
Q

Coverage E is included with ____ and ____. It can be added to ____ by endorsement.

A
  1. DP-3
  2. DP-2
  3. DP-1
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11
Q

Dwelling policies insure only property and do not automatically contain liability insurance. For this reason, dwelling policies are called ____

A

Monoline policies

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12
Q

DP-1 Coverages that are automatically included for no extra charge: (6)

A
  1. Debris removal
  2. Property removed - 5 days
  3. Reasonable repairs
  4. Tenant’s improvements (10% per coverage C)
  5. Fire department service charge - up to $500 (no deductible)
  6. Worldwide personal property (10% of coverage C limit for covered property)
  7. Other Structures - 10% of coverage A
  8. Fair Rental Value - 20% of Coverage A
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13
Q

DP-2 and DP-3 additional coverages: (5)

A
  1. Trees, shrubs, and plants
  2. Collapse
  3. Glass or safety glazing material
  4. Ordinance or law - 10% of coverage A
  5. Property removed - 30 days instead of 5 days
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14
Q

DP-2 and DP-3: ____% of the coverage A limit to trees, shrubs, and plants with a max of $____ for any one tree/plant

A

5% and $500

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15
Q

Collapse that results from ____ or ____ or ____ is not covered if the insured knew about the damage before the building collapsed.

A
  1. Hidden decay
  2. Hidden insect
  3. Vermin damage
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16
Q

DP-2 and DP-3: Ordinance or law coverage allows payment of up to ____% of the coverage A limit of liability for the increased cost to repair or rebuild a dwelling or other structure to conform to applicable building and land use codes.

A

10%

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17
Q

DP-2 and DP-3: Property removed from premises to protect from damage is extended from 5 days to ____ days

A

30

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18
Q

DP-1 pays all losses on an ____ basis.

A

Actual Cash Value

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19
Q

DP-2 and DP-3 pay losses on a ____ basis, with no deduction for depreciation. Insureds must cover the building with insurance equal to ____% or more of the full replacement cost.

A

Replacement cost, 80%

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20
Q

The following are the only PERILS that are automatically covered by DP-1: (3)

A
  1. Fire
  2. Lightning
  3. Internal explosion
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21
Q

DP-1: What is the extended perils acronyms? Does this coverage cost additional premium?

A

WCSHAVVER and V&MM, Yes

22
Q

Can V&MM be purchased alone without WCSHAVVER?

A

No, they must be purchased together in conjunction

23
Q

DP-1 V&MM does not cover: (3)

A
  1. Damage to glass
  2. Losses by theft, larceny, or burglary (but does apply to building damage caused by burglars)
  3. Vandalism to a building vacant for more than 60 consecutive days
24
Q

Does DP-2 broad form coverage include BIGAFFECT?

A

Yes

25
Q

DP-2 broad form dwelling policies: The weight of ice, snow, sleet, or falling objects does not cover ____

A

Basically anything outside the dwelling and the foundation.

26
Q

DP-2 broad form dwelling policies: BURGLAR(not vandalism) damage and accidental discharge perils are not covered if the building has been vacant for more than ____ consecutive days.

A

60

27
Q

DP-2 broad form dwelling policies: does the vehicle peril include damage to things outside the dwelling like fences, walkways, and driveways?

A

Yes, if the vehicle is being driven by somebody other than a resident of the insured’s household.

28
Q

DP-2 broad form policies: The smoke peril includes loss caused by ____ smoke.

A

Fireplace

29
Q

Out of Basic, Broad, and Special Form policies, Special is the most ____ of the three.

A

Inclusive

30
Q

DP-3 Special Coverage: does special form provide open peril coverage on the dwelling AND other structures?

A

Yes

31
Q

Which DP type is different from the others in that it’s covered from any direct physical peril unless specifically stated in the exclusions?

A

DP-3 Special Form

32
Q

General peril exclusions in all dwelling policies: (8)

A
  1. Ordinance law
  2. Earthquakes
  3. Water damage in general including flooding
  4. Power interruptions
  5. Intentional or negligent losses
  6. War
  7. Nuclear hazards
  8. Government seizure
33
Q

The ____ condition states that covered property losses are valued at ____ value but are not to exceed the amount necessary to repair or replace.

A

Actual cash value

34
Q

DP 1-3 settle losses to personal property at ____

A

Actual cash value

35
Q

DP 2-3 settle dwelling and other structure losses at ____ as long as the insured carries insurance equal to ____% or more of the full replacement cost.

A

Replacement cost basis, 80%

36
Q

The ____ condition gives the insurer the right to repair or replace damaged property with material or property of like kind and quality within ____ days of receiving the insured’s statement of loss.

A

Our Option, 30

37
Q

The ____ clause states that only the amount of loss over the deductible will be paid, up to the limit of liability.

A

Deductible Clause

38
Q

The ____ clause states that, if the case of a loss to an item that is part of a pair or set, the insurance company does not have to pay the value of the entire set.

A

Pair or Set

39
Q

The ____ condition states that the loss will be paid within ____ days after reaching an agreement with the insured.

A

Loss Payment, 60 Days

40
Q

The ____ condition states that, if a loss is also covered by other insurance, the insurance company will pay only its proportion of the loss.

A

Other Insurance

41
Q

The ____ condtion states that, if the insured or insurer recovers the property on which the insurer has made loss payment, the other party must be notified. The insured may have the property returned, in which case the loss payment will be adjusted, or allow the company to have it.

A

Recovered Property

42
Q

The insured may purchase ____ coverage as an endorsement to the dwelling policy or as a separate policy.

A

Personal liability and medical payments to others

43
Q

____ provides coverage for damages that the insured becomes legally obligated to pay because of an occurrence to which the coverage applies that causes bodily injury or property damage. The insurer will also defend the insured against such claims at its own expense, even if the suit is groundless or fraudulent. The policy minimum is ____.

A

Coverage L - Personal Liability, 100k

44
Q

____ coverage: the insurer will pay all necessary medical expenses incurred within ____ years of an accident that causes bodily injury. This coverage applies to injuries sustained while the injured party is:
* on the insured location with the insured’s permission
* off the insured location if the injury arises out of a condition on the insured location, caused by activities of the insured, or caused by an animal in the insured’s care

There is a MINIMUM limit of $____ per person under this coverage. Coverage does not apply to the insured or the insured’s family. Insured does not have to be legally liable for this to apply.

A

Coverage M, 3 years, $1000

45
Q

Personal liability and medical payments to others coverage also include three additional coverages: claim expenses, first aid to others, and damage to the property of others. Does not cost extra. Remember the acronym ____.

If the insured causes damage to property of others, the policy will provide replacement cost coverage of up to $____ for each occurrence or loss.

A

BAILED, $1000

46
Q

Residential Theft Coverage: The limited theft coverage endorsement is available for dwellings that are NOT ____. The broad theft endorsement is only available for ____ dwellings and can apply to on and off-premise theft.

A

Owner occupied, owner occupied

47
Q

Residential Theft Coverage Endorsement Exclusion: (9)

A

Animals
Credit Cards
Property in mail
Aircraft
Other insured property
Tenant’s property (not related to insured)
Business property
Property in the custody of others
Motor vehicles (unless assisting disabled)

48
Q

Special limits of liability apply to the following classes of property:
1. ____ for money or related property, coins, and precious metals
2. ____ for securities, manuscripts, and other valuable paper property
3. ____ for watercraft, including trailers and equipment,
4. ____ for trailers not used for watercraft
5. ____ for jewelry, watches, furs, and precious/semiprecious stones
6. ____ for firearms
7. ____ for silverware, goldware, or pewterware

A
  1. 200
  2. 1500
  3. 1500
  4. 1500
  5. 1500
  6. 2500
  7. 2500
49
Q

Other Endorsement for Dwelling Policies:

____ - provides an annual increase in insurance to Coverage A and B at renewal of ____%, ____%, or ____%

A

Automatic Increase in Insurance, 4%, 6%, 8%

50
Q

Other Endorsement for Dwelling Policies:

____ - attached to provide coverage when the intended occupant of a dwelling under construction is the named insured. Based on the value of the partially completed home. Policy limit increase as construction progresses.

A

Dwelling under construction

51
Q

Can you get a mobile home endorsement if it’s on a permanent foundation?

A

Yes

52
Q

Other than being an open peril policy, what is the main difference that set DP-3 apart from DP-2?

A

DP-3 has Broad Coverage for personal property.

P&C Insurance (23 decks)

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