DOHRN PROPERTY TYPES OF POLICES

The standard deductible of a Dwelling Policy is

$250 The standard deductible of the DP form is $250.

Which of the following uses of a detached garage is permissible under the terms of Coverage B in a Dwelling Policy?

A non-tenant of the insured rents the structure as a private garage. Business use of a detached structure is not permissible but it is allowed for the insured to rent the garage to a non-tenant for use as a private garage.

Which of the following statements concerning landscape coverage in a homeowners policy is NOT ACCURATE?

An HO-5 and an HO-8 both offer up to $500 per plant, tree or shrub up to 5% of the Coverage A amount. HO-8 the Modified form only provides a landscape coverage limit of up to $250 per item.

Which of the following statements about Dwelling Property insurance is FALSE?

An insured must purchase coverage on both the dwelling and contents. ( PAGE 25) The Dwelling Program is very flexible and allows the purchase of both dwelling and contents or dwelling only or content only coverage.

In order to insure a condominium, an apartment building or an office building under a Business Owner Policy, the height restriction limits applicability to these types of buildings are :

Condominium and apartment buildings have no size limit while office buildings are restricted to six stories in height. The BOP limits office buildings to six stories with 100,000 total square feet of space while apartment and condominium buildings of any size are now allowed to be covered under the BOP.

An HO-4 will not offer which of the following coverage?

Coverage B The Tenant Broad form offers personal property and loss of use coverage under section one and not coverage for dwelling or other detached structures.

Which of the following Dwelling Program policies insures against loss to dwelling on an open perils basis?

DP-3 In the dwelling program DP-3 the Special form insures dwellings against lost on an open perils basis. Finish Quiz

Under a Commercial Property policy, all of the following are considered as real property and not as personal property, EXCEPT:

Fixtures. Only permanent fixtures are real property and all others are personal property; ladders are considered real estate in this case because all property used to service the premises meets the real property definition.

All of the following are main elements of a Commercial Package Policy, EXCEPT:

Liability. Liability is one of seven coverage parts available for insertion to a CPP but it is not one of the four main elements which include: common declarations and conditions, coverage parts and interline endorsements.

E is a professional musician who owns a vintage guitar with a current value of $20,000. E should properly insure this guitar with a(an):

Personal Articles Floater ( PAGE 50) Scheduled personal property with great values like musical instruments, jewelry and furs to name a few, are properly insured with a Personal Articles Floater.

A neighbor hurts his arm while attending a party at the home of the insured. Which of the following statement about Coverage F, Medical Payments is NOT true?

The injured neighbor may not bring a claim on his own for medical expense payments which may be available to him under Coverage F of the insured's policy. (PAGE 17) Coverage F allows the insured party to file a claim on their own to collect any benefits due and they do not need any permission of the insured to do so.

Which of the following losses are covered under a HO-5 policy form?

The insured drops an expensive couch and destroys it while moving it to do some painting in the insured dwelling. The Comprehensive form insures both the dwelling and contents on an open peril basis and if an insured damages their own personal property accidentally, it is covered because it is not excluded.

Which coverage limits shown is accurate for Flood Insurance?

Under the regular program, the maximum coverage limits for a single family dwelling are $250,000 for the building and $100,000 for the contents. The regular program limits for single family homes is $250,000 for structures but only $100,000 for contents with a deductible as stated in the declarations that applies to separately to both coverages.

If a business intends to claim debris removal under a Business Owner Policy, it must be reported to the insurer:

within 180 days from the date of physical loss. If a business intends to claim debris removal under a Business Owner Policy, it must be reported to the insurer within 180 days from the physical loss date and loss is limited to the actual expense of the debris removal or a maximum 25% paid for the direct loss plus the amount of the deductible.

A sudden and powerful windstorm uproots four trees in the backyard of an insured but miraculously causes no damage to the insured structures. How much will the insured's HO-3 Special form pay toward the costs of removing the debris of the felled trees?

$0 Debris removal under additional coverage of all homeowners forms will only pay up to $1,000 total for felled trees (no matter the total number) if the trees are brought down by windstorm, hail or weight of snow, ice or sleet and STRIKE THE DWELLING ROOF OR EXTERIOR WALL.

What is maximum amount payable under additional coverages in a homeowners policy for Loss Assessment?

$1,000 Loss assessment pays up to $1,000 charged to the insured owner of a condo or tenant in a building when communal property is damaged by a covered peril and the insured is assessed a share of the loss amount to pay.

In an HO-8 Modified form, what percentage of the Coverage A amount is available for Coverage D, Loss of Use?

10% Under the Modified form, Loss of Use is only 10% of the Coverage A amount.

According to a Businessowner Policy, eligibility requirements limit the amount of seating in a fast food or casual dining restaurant to which total number of seats?

150 (PAGE 42) Businessowner Policy eligibility requirements limit the amount of seating in Casual Dining, Fast Food and Fine Dining Restaurants to 150 person maximum seating.

What is the debris removal maximum found under the Builder's Risk policy?

25% of the coverage amount plus an additional $25,000 if necessary, per covered location. (PAGE 44) Debris removal in a Builder's Risk policy is the same found in other commercial policies: up to 25% of the coverage amount plus the deductible plus an additional $25,000 if the 25% limit is not enough to cover the debris removal cost.

Under Coverage F of a homeowners policy, a claim must be made to the insurer within what period of time from the date of the accident?

3 years Coverage F requires that all medical expense claims for personal injury must be made within 3 years from the date of the accident causing the loss.

Which of the following insured property would be covered under a replacement cost basis in a Business Owner Policy under Coverage B?

A copier leased by the insured. Coverage B of the BOP pays for loss to business personal property of the insured including personal property leased by the insured for which the insured is contractually liable.

Breakdown DOES NOT MEAN or include leakage at any valve, fitting, shaft seal, gland packing, joint or connection.

An original oil painting by a prominent artist. Although a personal articles floater usually use ACV for loss valuation, stated value is used for items like unique artwork which can be difficult to value.

Coverage D of a homeowners policy provides payment for loss of all of the following, EXCEPT:

Construction cost to repair thee damaged dwelling. Construction repair is provided under Coverage A or B, not Coverage D

Which of the following Coverage D statements is INCORRECT as it pertains to Dwelling Program forms?

Coverage D is up to 20% of the coverage A amount in DP-1 (page 26) In DP-1 up to 20% of the Coverage A amount can be applied only at the maximum rate of 1/12 per month, if the lost rental value warrants it. Also an amount paid under Coverage D reduces the Coverage A amount dollar for dollar under a DP-1.

Which of the following Homeowners forms is not named perils coverage?

HO-5 HO-5, the Comprehensive form is open perils, not named perils coverage.

J owns a townhouse. Which of the following homeowners forms is best suited to this type of real estate ownership?

HO-6 The HO-6 Condominium form is used by people who own real estate structures in common with other real estate owners such as those with common walls like townhouse and duplex property owners.

Which of the following statements applying to the National Flood Insurance Reform Act of 1994 and lenders is TRUE?

If a borrower fails to purchase required flood insurance within 45 days of notification to do so, the lender may purchase the flood insurance on behalf of the borrower. A borrower must purchase required flood insurance within 45 days of notification to do so. If the borrower fails to make this purchase then the lender may purchase the flood insurance on behalf of the borrower.

Which of the following is true with regard to the additional coverage of Preservation of Property found in a Builder's Risk policy?

Property removed from the described premises to protect it is covered for up to 30 days. ( PAGE 48 & 49) Property removed to protect it from further loss is covered for up to 30 days while temporarily away from the described premises.

All of the following losses to the dwelling of an insured are covered under an HO-5 Homeowners policy, EXCEPT:

The insured notices wood shaving in the basement for several years before part of the structure collapses due to termite damage. HO-5, the Comprehensive form is open perils coverage which is defined by the perils it excludes. Insect damage is not covered if the insured had reason to know of the situation. Only a collapse due to hidden decay by termites would be covered.

All of the following are accurate pertaining to Comprehensive Personal Liability coverage of a homeowners policy, EXCEPT:

The policy deductible applies. There is no deductible applied against Section II, CPL loss.

Which of the following statements about NFIP deductibles is TRUE?

There is a deductible applied to the building and another to the contents under both the emergency and the regular programs. A separate deductible is applied to each of the coverages, building and contents. In the emergency program the deductible is $2,000 and the deductible for the regular program is selected by the insured within the range of $1,000 u to $5,000. in the amounts of $500 for the regular program and $1,000 for the emergency program.

All of the following statements about Personal Articles Floaters is true, EXCEPT

They cannot be written on a stated value basis. Floaters can be written on a stated value basis infrequently for items such as fine arts and in such cases depreciation is not considered in valuation.

If the building in which a business operates is a total loss, which of the following expenses will not be covered under Business Income coverage?

Utility Bills. Business income does not pay for expenses that are susceptible to the shutdown (no building means no electric or gas bills) and only continuing expenses of the business are paid.

Which of the following coverage parts are not offered through a Commercial Package Policy (CPP)?

Workers compensation insurance. Workers compensation insurance, mandatory by state law, is not offered as part of the CPP but instead is coverage that is self-contained and must be purchased separately.

According to the language of the Equipment Breakdown policy, which of the following events would not meet the definition of Breakdown?

a leaking valve Breakdown DOES NOT MEAN or include leakage at any valve, fitting, shaft seal, gland packing, joint or connection.

If an insured with a Business Owner Policy wishes to protect herself against loss of money by theft:

she should add the optional coverage of Money and Securities. Money and Securities coverage in the BOP is an optional coverage which must be endorsed and for which additional premium must be charged. It protects the insured against theft loss to money and securities.

If a business is concerned with repetitive coverages and paying more than once for the same coverage, the Commercial Package Policy solves this issue:

through interline endorsements. ( page 30) In a CPP, interline endorsements automatically remove any duplication from the coverage parts and the insured pays only once for a particular coverage rather than multiple times.