Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

P&C Insurance > Unit 7 Homeowners Insurance > Flashcards

Unit 7 Homeowners Insurance Flashcards

1
Q

The homeowners policy is a ____ policy or ____ policy because it provides property and liability insurance in a single policy.

A

Package or Multiline

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Can renters get homeowners insurance?

A

Yes, but only for their personal property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Which dwellings are permitted?

A

1-4 unit dwellings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

1-4 family dwellings are permitted, with a maximum of ____ additional family or ____ roomers or boarders per unit.

A

One, Two

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

The dwelling must be used exclusively as a residence except for certain ____ such as offices, professional or private schools, or studios.

A

Incidental Occupancies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Are farm dwellings eligible?

A

No

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Are mobile homes eligible?

A

Yes, if the mobile home endorsement is attached

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Are dwellings under construction eligible?

A

Yes, if the occupant is to be the named insured

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Does HI cover spouse and relatives?

A

Yes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Residents such as foster children and exchange student must be under ____ years old to be covered.

A

21

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Full-time students under the age of ____ who are a relative of the insured and were a resident of the household before leaving for school.

A

24

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Does the policy continue in force if the named insured dies?

A

Yes, until the policy expires or can be replaced (executor of estate will have control)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Under the cancellation condition, the insurance company may cancel for any reason with ____ days’ written notice to the insured during the first ____ days of a new policy.

A

10, 60

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

After the policy has been in force 60 or more days, the company may only cancel for the following reasons:
* Material misrepresentation ____ days’ notice required
* Substantial change in risk insured ____ days’ notice required
* Nonpayment of premium ____ days’ notice required

A

30, 30, 10

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Nonrenewal by insurance company: company must give ____ days’ notice

A

30

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

____’s right and duties may include:
* filling proof of loss if the insured fails to do so
* paying the premium if the insured fails to do so

Nothing the insured does, even dishonestly, can prevent a listed ____ from being paid (the insured commits arson and burns his own house)

A

Mortgagee, mortgagee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

HO-2 through HO-8: all of these forms provide identical ____ coverage

A

liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

HO-2: ____; owner occupant

A

Broad form

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

HO-3: ____; owner occupant

A

Special form

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

HO-4: ____

A

tenants or renters

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

HO-5: ____; owner occupant

A

Comprehensive form

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

HO-6: ____ owners

A

Condominium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

HO-8: ____

A

Modified form for special risks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Section 1:
Coverage A- ____
Coverage B- ____
Coverage C- ____
Coverage D- ____

A

A. Dwelling
B. Other Structures
C. Personal property
D. Loss of use

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Does HO-6 cover the dwelling?

A

No, since its a condo only the inside walls and floors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

The standard Coverage A minimum for HO-6 is $____

A

$5000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Does Coverage B apply to additional structure(s) being used for commercial purposes?

A

No

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Coverage C is included in all HO polices, true or false?

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Coverage C: personal property away from the residence premises shown in the declarations is covered for up to ____% of the Coverage C limit or $____, whichever is greater. This restriction does not apply:
* to the property being moved from the residence premises to a new principal residence (full coverage for ____ days from the start of the move)
* when the property is moved from the premises because the residence is under repair/unfit to live in

A
  1. 10%
  2. $1000
  3. 30
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Coverage C does not apply to: (6)

A
  1. Animals
  2. Motorized vehicles (unless used for disability or to service the premise like lawnmowers)
  3. Property of boarders
  4. Property rented to others off the residence premises
  5. Credit cards
  6. Rental property that is part of the apartment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Special Limits of coverage: Name the one category that’s limited to $200

A

Money or related property, coins, and precious metals (does not apply to tableware)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Special Limits of coverage: Name the three categories that are limited to $2500

A
  1. Theft of firearms and related equipment
  2. Theft of silverware, goldware, platinumware, etc. Includes tea sets, trophies, etc.
  3. Property on premises used for business purposes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What is the special limit of coverage for jewelry, watches, furs, and stones?

A

$1500

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Coverage D - Loss of Use: IF a civil authority prohibits the insured from using the residence premises as a result of direct damage to neighboring premises by a peril insured against, the additional living expense or fair rental value loss will be covered for up to ____ weeks.

A

2 weeks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What are the basic named perils?

A
  1. Fire
  2. Lightning
  3. Internal Explosion
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

What are the two acronyms for extended coverage on a basic policy?

A

WCSHAVVER and V&MM

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Do all homeowners policies automatically cover theft?

A

Yes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Basic Policy: ____ from agricultural smudging or industrial operations is not covered.

A

Smoke

39
Q

V&MM losses to property are not covered if the residence is vacant for ____ consecutive days or more.

A

60

40
Q

Broad form includes which acronym for perils?

A

BIGAFFECT

41
Q

Does the broad form policy include smoke caused from the fireplace?

A

Yes

42
Q

Which HO policy has Special coverage for Coverages A-C?

A

HO-5 Comprehensive

43
Q

Which HO policy is Basic for Coverages A-C?

A

HO-8

44
Q

Which 2 HO policies are broad for Coverages A-C?

A

HO-2 and HO-6

45
Q

Which HO policy has Special coverage for A-B but Broad for C?

A

HO-3

46
Q

Name the additional coverages that are included in all homeowners forms with no additional premium: (8)

A
  1. Debris removal
  2. Reasonable repairs
  3. Trees, shrubs, and other plants
  4. Fire department service charge
  5. Property removed
  6. Credit card, forgery, electronic fund transfer card or access device, and counterfeit money
  7. Loss assessment
  8. Glass
47
Q

For Debris Removal coverage to apply to fallen trees in your yard, what 2 conditions must be met?

A

The tree must have fallen due to a covered peril like a storm and it must have damaged a covered structure or be blocking a walkway.

48
Q

Does Debris Removal coverage apply to a neighbors tree that fell into your yard?

A

Yes, as long as it was due to a covered peril insured under Coverage C

49
Q

Except for fallen trees, debris removal is included in the policy limit; however, up to an additional ____% of that limit may be available, if the amount to be paid for the actual damage to the property plus the debris removal expense is more than the limit of liability. No matter how many trees fall, a maximum of $____ is available for tree debris removal for one occurrence, with a maximum of $____ per tree.

A
  1. 5%
  2. $1000
  3. $500
50
Q

Trees, shrubs, and other plants: Coverage is limited to ____% of the Coverage A limit and a maximum of $____ for any one tree, shrub, or plant.

In HO-4 and HO-6 the limit is ____% of the Coverage C limit or a maximum of $____ for any one tree, shrub, or plant.

A
  1. 5%
  2. $500
  3. 10%
  4. $500
51
Q

Fire department service charge pays up to $____ when called to save or protect covered property from a covered peril.

A

$500

52
Q

Property Removed: How many days is it covered for?

A

30

53
Q

Credit card, forgery, electronic fund transfer card or access device, and counterfeit money: Pays up to $____ with no deductible for the insured’s legal obligation to pay losses from:
*theft or unauthorized use of these cards
*forgery or alteration of the insured’s checks
*the insured’s acceptance in good faith of counterfeit money

A

$500

54
Q

Loss Assessment pays up to $____ for the insured’s share of a loss assessment charged by an HOA. For example, the clubhouse was damaged by lightning or something like that. The deductible applies only ONCE regardless of the number of assessments in a single occurrence.

A

$1000

55
Q

Additional Coverage - Collapse: Which 1 HO form is excluded from this?

A

HO-8

56
Q

Additional Coverage - Landlord’s Furnishings: Which 3 HO forms does this apply to and what is the maximum dollar limit?

A

HO- 2, 3, and 5
$2500

57
Q

Additional Coverage - Building Additions and Alterations: Which 1 HO form does this apply to and what % of Coverage C can be used?

A

HO-4, 10%

58
Q

Additional Coverage - Grave Markers: Which 1 HO form does this not apply to and how much money can be used from Coverage C for this?

A

HO-8, $5000

59
Q

Additional Coverage - Ordinance or Law Coverage: Which 1 HO form does this not apply to and what % of Coverage A can be used for this?

A

HO-8, 10%

60
Q

Section 1 Conditions - Claim Values: Losses to the following are paid at actual cash value (replacement - depreciation) but not more than the cost to repair or replace them:
1. ____
2. ____
3. ____

A
  1. Personal property
  2. Awnings, carpeting, appliances, outdoor antennas, and outdoor equipment
  3. Structures that are not buildings (swimming pools and fences)
61
Q

Section 1 Conditions - Claim Values: Losses to the dwelling and other structures are paid at replacement cost as long as the insured carries an amount of insurance equal to or greater than ____% of the building’s replacement cost.

A

80%

62
Q

Insurance Limits - Coverage B: ____% of Coverage A limit

A

10%

63
Q

Insurance Limits - Coverage C: (primary insurance for HO-4 and HO-6)
____% of Coverage A limit
____% of Coverage C limit

A

50%, 10%

64
Q

What is the difference between HO-3(Special) and HO-5(Comprehensive)?

A

HO-3 has broad coverage regarding personal property, HO-6 has special coverage.

65
Q

What is the difference between HO-4(renters) and HO-6(condo)?

A

HO-6(condo) has $5000 broad coverage on the inside of the unit. Everything else is the same; no coverage for other structures and broad coverage for personal property and loss of use.

66
Q

The ____ endorsement provides a separate schedule of insurance for one or more of the 9 major categories of valuable property: jewelry, furs, cameras, musical instruments, silverware, gold equipment, fine art, stamps, and coins.

A

Scheduled personal property

67
Q

The ____ endorsement provides that the policy will reimburse losses to personal property on a replacement cost basis, rather than actual cash value (depreciated).

A

Personal property replacement cost

68
Q

The ____ endorsement overrides the exclusions under the homeowners forms that apply to the insured’s business activities conducted ON THE PREMISES, it also eliminates the $2500 limit for business property.

A

Permitted incidental occupancies

69
Q

The earthquake endorsement provides coverage for damage caused by land movement including volcanoes. If a major earthquake occurs, the insured only has to pay a single deductible for any aftershocks that occur within ____ hours of the original earthquake.

A

72

70
Q

The limited fungi, wet or dry rot, or bacteria endorsement is used only on HO-____ and HO-____.

A

HO-3 and HO-5

71
Q

Is there a home day-care endorsement?

A

Yes, offers liability coverage, premium based on number of children

72
Q

Section 2: Coverage E applies to ____

A

Personal liability

73
Q

Section 2: Coverage F applies to ____

A

Medical payments to others

74
Q

Coverage E applies to liability for bodily injury or property damage arising out of an insured’s personal, non-business activities that occur ____. Applies to what the insured is LEGALLY LIABLE for.

A

Anywhere (except farm land)

75
Q

Coverage E: The base liability limit provided for any one occurrence is $____ but this can be increased for an additional premium.

A

$100k

76
Q

Coverage F - pays all necessary medical expenses incurred within ____ years of an accident that causes bodily injury. Can be used even if insured is NOT legally liable.

A

3

77
Q

Coverage F: Injury to the named insured or regular residents, other than resident employees, are not covered under Coverage F. For this reason, Coverage F is sometimes referred to as ____.

A

Guest medical

78
Q

Coverage F has a base limit of $____ per person per accident, but can be increased for additional premium.

A

$1000

79
Q

Section 2 - Watercraft: Sailing vessel must be ____ feet or less to be covered.

A

26

80
Q

Section 2 - Watercraft: Sailing vessels over 26 feet must not be ____ or ____ by the insured.

A

Owned or rented

81
Q

Section 2 - Watercraft: Non-sailing vessels with inboard/outdrive engines must have ____ horsepower or less and not be owned.

A

50

82
Q

Section 2 - Watercraft: Non-sailing vessels with inboard/outdrive engines over 50 horsepower must not be ____ or ____.

A

Owned or rented

83
Q

Section 2 - Watercraft: Non-sailing vessels with an outboard engine must have ____ horsepower or less to be covered.

A

25

84
Q

Section 2 - Watercraft: Non-sailing vessels with an outboard engine over 25 horsepower are covered if/when:
* the outboard engine is not ____ by an insured
* if the outboard engine is owned by an insured and the
engine was:
- acquired during the ____
- acquired before the policy period, but only if it was
declared at policy inception or within ____ days after the
acquisition

A
  1. Owned
  2. Policy period
  3. 45 days
85
Q

Does Coverage E or F cover libel, slander, and invasion of privacy?

A

No

86
Q

Section 2: Which acronym pertains to supplementary payments and coverage for liability?

A

BAILED

87
Q

Section 2: The ____ endorsement covers the insured from the nonbodily injury claims such as libel, slander, false arrest, invasion of privacy, or malicious persecution.

A

Personal injury endorsement

88
Q

Section 2: If the insured operates a business from home, such as a piano teacher, the ____ endorsement is necessary to provide liability and medical payment coverage for the business exposure.

A

Permitted incidental occupancies endorsement

89
Q

HO BAILED - what is the maximum per day an insured can collect from loss of earnings while in court for example?

A

$250 Per Day

90
Q

Damage to Property of Others - What is the maximum this will pay out per occurence?

A

$1000

91
Q

Insurance Limits - Coverage D: ____% of Coverage A limit

A

30%

92
Q

Insurance Limits - Coverage B: ____% of Coverage A limit

A

10%

93
Q

Which perils are trees, shrubs, and plants covered by?

A
  1. Fire
  2. Lightning
  3. Explosion
  4. Riot
  5. Aircraft
  6. Vehicles
  7. Theft
  8. Vandalism and MM

P&C Insurance (23 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions