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22 Cards in this Set
- Front
- Back
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The Broad and Special Dwelling Forms provide two Extensions of Coverage not found on the Basic form. What are they?
a) Removal coverage and coverage for Other Structures b) Debris Removal and Worldwide Personal Property coverage's c) Coverage's for Building Collapse and for Lawns, Trees, and Plants d) Coverage's for Other Structures and Loss of Rental Value |
C. Coverage's for Building Collapse and for Lawns, Trees, and Plants
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Theft of built-in dwelling fixtures are covered under which dwelling form:
a) Broad b) None c) Basic d) Special |
D. Special
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Which clause in a fire policy protects the insurer from over-insurance?
a) Subrogation clause b) Appraisal clause c) Abandonment Clause d) Pro-rata liability clause |
D. Pro-rata liability clause
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On an All-Risk Property policy, where would you look to determine if a loss is covered?
a) Conditions b) Exclusions c) Insuring agreement d) Declarations |
B. Exclusions
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When you leave your fully furnished house to go on an extended vacation, your house is considered:
a) Uninhabited b) Unoccupied c) Inhabited d) Vacant |
B. Unoccupied
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All of the following are covered under the Basic Form, EXCEPT:
a) Damage done by vehicles b) Wind and Hail c) Damage done by aircraft. d) Theft |
D. theft
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The clause in the Dwelling Policy that limits the liability of the insurer to a portion of the loss no greater than "the amount hereby insured shall bear to the whole insurance covering the property against the peril involved, whether collectible or not" is called the:
a) Pro-Rata liability clause b) Appraisal clause c) Abandonment clause d) cancelation Clause |
A. Pro-Rata liability clause
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Under the Doctrine of Proximate Cause, which of the following would be covered on a fire insurance policy:
a) Firemen breaking down the door b) Smoke damage c) Water damage from a sprinkler system d) All would be covered |
D. All would be covered
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If a dwelling covered by the Basic Form suffered damage due to an explosion resulting in $5,000 damage, a resulting fire causing $10,000 in damage and the water used to put out the fire caused $1,000 in damage, how much would the policy pay?
a) $10,000 b) $16,000 c) $26,000 d) $5,000 |
B. $16,000
All are covered losses. The explosion is the “proximate” cause of the fire and water damage. |
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On Dwelling Property forms, there is no coverage for vandalism if the dwelling has been vacant for more than:
a) 60 days b) 10 days c) 45 days d) 30 days |
A. 60 days
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On the DP-1 Basic Form, all of the following are covered under the Perils of Extended Coverage, EXCEPT:
a) vehicles b) vandalism c) aircraft d) riot and civil commotion |
B. Vandalism
On a DP-1, vandalism is not included in ECE, but can be added as an endorsement for an additional premium |
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On a Dwelling Property Form, Coverage B, Other Structures, excludes all the following, EXCEPT:
a) Private garage rented to others b) Commercial structures c) Farm structures d) Manufacturing structures |
A. Private garage rented to others
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The DP-2 Broad Form automatically insures covered property against loss from any cause while being removed from a premises endangered by a Peril insured against for no more than:
a) 30 days b) 60 days c) 90 days d) 5 days |
A. 30 days
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If Coverage C, Personal Property (or Contents) coverage is written on a Dwelling Form, an Extension of Coverage may be used to provide worldwide Personal Property coverage for an amount up to:
a) 50% of coverage c limit b) 40% of coverage c limit c) 10% of coverage c limit d) 25% of coverage c limit |
C. 10% of coverage c limit
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Which of the following is a "hostile" fire:
a) A grease fire in the kitchen b) One in your wood stove c) One that is intentionally set and remains within its intended limits d) One in your fireplace |
A. A grease fire in your kitchen
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Coverage B, Other Structures, is in addition to limits on all Dwelling Property policy forms, EXCEPT:
a) basic b) no exceptions c) special d) broad |
A. Basic
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The Broad and Special Dwelling Forms provide two Extensions of Coverage not found on the Basic form. What are they?
a) Coverages for Building Collapse and for Lawns, Trees, and Plants b) Removal coverage and coverage for Other Structures c) Coverages for Other Structures and Loss of Rental Value d) Debris Removal and Worldwide Personal Property coverages |
A. Coverages for Building Collapse and for Lawns, Trees, and Plants
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You have two Fire insurance policies. Company A covers your dwelling for $100,000. Company B covers it for $300,000. You have a claim for $20,000. How much will Company A pay?
a) $15,000 b) $5,000 c) $20,000 d) $10,000 |
B. $5,000
Add the two policies together to find the total amount of coverage, which is $400,000. Pro-rate each policy's share of the total. Company A has 1/4 of the total, so it will pay 1/4 of this claim. This is the Pro-rata Liability clause. |
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Under the Doctrine of Proximate Cause, which of the following would be covered on a fire insurance policy:
a) water damage from sprinkler system b) smoke damage c) all would be covered d) firemen breaking down the door |
C. All would be covered
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When canceling or non-renewing a Dwelling Fire policy for nonpayment, an insurer must give how many days advance notice to the insured?]
a) 5 b) 10 c) 20 d) 30 |
B. 10
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All of the following are true regarding the DP-2 Broad Form policy, EXCEPT:
a) it contains 80% coinsurance clause b) it's ACV on the contents c) theft is a covered peril d) it is a named peril form |
C. Theft is a covered peril
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After a claim, unless the insured requests otherwise, the Salvage Value of the damaged property belongs to:
a) the insurer b) the insured c) the mortgagee d) the fire department |
A. The insurer
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