Licensing CH 6

An HO-3 policy will pay how much for a tree damaged in a windstorm?

$0. The most paid for a covered tree is $500, but coverage is not provided for windstorm or hail losses.

Standadr Deductible for HO

$250

Grave Markers

$5,000 provided as an additional coverage

Which person is not a covered resident under Homeowners policies?

1. The named insured's tenant

Coverage B Limits

10% of Coverage A

Ordinance of Law Endorsement

10% of Coverage A

If an insured plans to sue the insurer, the insured must bring that legal action within

2 years of loss

Fine Arts Provisions

25% of limit 90 days to report it, for furs: 25% and 30 days to report

Coverage D Limits

30% A: HO - 2,3,5 30% C : HO - 4 50% C : HO - 6 10% A : HO -8

Debris Removal

5% of limit applicable to the loss if exceeds policy's limit, up to $1,000 or $500 per tree

Coverage C Limits

50% of Coverage A, college student is 10% of $1,000

Under a Homeowners policy, which of the following property losses to watercraft is NOT covered?

? The insured's kayak is stolen from a public beach while the insured is on vacation

Special HO-3 Loss Replacement

A,B: RC C: ACV

Broad Form Loss Replacement

A,B: RC; C: ACV

Special HO-3 coverage

A,B: open perils; C: name perils

All of the following conditions apply to Section II of a Homeowners policy, except:

Abandonment

If other insurance applies to a loss also covered by covered by Section II of a Homeowners policy, the Homeowners policy:

Acts as excess insurance

An insured must add the Watercraft Liability Endorsement to their Homeowners policy if they want coverage for liability arising out of the use of which of the following watercraft?

An inboard motorboat the insured owns

A Broad Form Homeowners policy would cover which of the following losses?

Building glass breakage caused by an earthquake

Basic Form HO-1

Basic perils + EC + VMM + limite coverage for theft

Under a Homeowners policy, personal liability coverage protects the insured from claims resulting from:

Bodily injury or property damage to others

Personal liability coverage provided by a Homeowners policy would cover which of the following?

Bodily injury to a guest caused by the insured's pet dog

J is teaching a family member, T, how to drive J's car. T accidentally drives into J's garage and fence, causing damages. The damages to the garage are covered on a replacement cost basis, but the damage to the fence would not be covered under this form.

Broad Form HO-2

The Broad Form perils named on the HO-2 include all of the following causes of loss, except:

Collapse

The insured property and some contents inside are damaged after a deer broke into the home. The insurer pays for damages to the building on a replacement cost basis and damages to personal property on an actual cash value basis.

Comprehensive Form HO-5

Coverage A on HO-6

Condo; alterations, appliances, fixtures and improvements, property obligated to insure, owned structures on property NOT : land, structures rented or used for business

R is a tenant of a house, and their couch is damaged by accidental discharge of water. The insurer pays the claim on an actual cash value basis.

Contents Broad Form HO-4

An insured has a Homeowners policy that protects a dwelling and a swimming pool. While a guest is staying with the insured, the insured's 8-year-oild child takes the guest's phone and purposefully throws it into the pool. The insured's policy will:

Cover the damage under the Damage to Property of Others Additional Coverage

Section I Coverages

Debris removal, property removed, loss assessment, NOT Gov action

Special Form: RC value of the home is $300,000, limits of Dwelling, Other Structures, Personal Property, and Loss of Use?

Dwelling: limits 300,000 OS: 10% $30,000 PP: 50% $150,000 Loss of Use: 30% $90,000

Landlord's Furnishings

HO-2,3,5 only; $2,500; insured against Broad Form named perils, not theft; includes appliances, carpeting, and furnishings in rental unit

Named Perils Basis

HO-2: ABC HO-4 C HO-6 A,C HO-3 C

K left their expensive watch in their car overnight. In the morning, K finds that someone broke into the car and stole the watch. Which policy would cover the loss of the watch?

HO-3

After moving to a new town, T rents a house, with plans to buy a house sometime in the future. Which form best meets T's insurance needs as a tenant?

HO-4

While visiting the local dog park, P's dog jumps on R. Later, R sues P, claiming the dog attacked them and caused bodily injury and suffering. Under Section II of P's Broad Form Homeowners policy, all of the following statements are correct, except:

If R's legal claim is deemed to be false or fraudulent, P's insurer will not cover the defense costs.

When added to a Homeowners policy, the Personal Injury Endorsement adds liability coverage for all of the following injuries, except:

Intentional invasion of a boarder's right of privacy; Covers: Defamation, such as slander or libel, Malicious prosecution, and false arrest

Section II

Liability Coverages E and F

Which of the following is an Additional Coverage under Section II of a Homeowners policy

Loss Assessment

Fine Arts Conditions

agreed value; stamps and coins are market value <$250, all other are paid ACV

J is hosting a dinner party with family friends. After dinner, one of the guests trips while running in the yard and breaks their arm, incurring $2,500 in medical bills. Under Section II of J's Homeowners policy, coverage for these expenses is subject to which of the following policy terms?

Medical payments made to the guest are not subject to the policy deductible

Coverage F

Medical; within 3 years of accident; medial, surgical, x ray, dental, ambulance, hospital, nursing, prosthetic, funerals; negligence not required; limits $1,000 per person

The insured property is damaged in a hailstorm. Because of the age of the home, the insurer pays for materials that will perform the same function as the original materials.

Modified Form (HO-8)

Section II Exclusions

Motor Vehicle Liability, Watercraft, Aircraft Hovercraft, communicable diseases, war, not insured,

Open Perils Basis

ODD HO-3 AB, HO-5 ABC

An insured insures an expensive pair of earrings on the Scheduled Personal Property Endorsement added to their Homeowners policy. Coverage is provided:

On an open perils basis by the endorsement

R insures their home on a Broad Form Homeowners policy. When the dwelling is endangered by a fire on the neighboring premises, R removes personal property from the home to protect it from the potential loss. While removed, the personal property is covered on a(n):

Open perils basis

The Scheduled Personal Property Endorsement on a Homeowners policy provides which of the following coverages to described property?

Open perils coverage

Exclusions

Ordinance of Law, Earth Movement, Water, Power Failure, Neglect, Intentional Loss, War, Nuclear Hazard, Gov Action, defective construction unless dwelling is lost due to this

Which of the following coverages is not included in a standard Homeowners policy?

Personal Injury Liability

Coverage E

Personal Liability- bodily or property damage, $100,000 limit; not personal injury

Contents Broad Form HO-4

Tenant's Form; not provided for dwelling just personal property against Broad Form named perils, ACV

Sections I

Property Coverges: A,B,C,D

Under Section II of the Homeowners policy, a two-family dwelling where the insured resides in one of the units, including other structures and grounds at that location, is referred to as:

Residence premises

Under Section II of a Homeowners policy, which of the following is correct?

Section II is the same on all Homeowners Forms

A stray dog breaks through the door of the N's detached garage and damages personal property stored in the garage. The damage to the door is settled on a replacement cost basis, but damage to personal property is not covered.

Special Form HO-3

The insured condo is damaged by burglars. The insurer pays for the damage to the property, but it does not cover the contents that do not belong to the insured.

Unit-Owners Form (HO-6)

After an accident at an insured's home that results in bodily injury to a guest, the insured's Homeowners policy requires the insured to do all of the following, except:

Voluntarily make payments toward the guest's medical expenses

Under the Subrogation condition of a Special Form Homeowners policy, the insured may:

Waive their rights of recovery prior to a loss

The insurer's duty to defend the insured, as provided by Section II of a Homeowners policy, ends:

When the damages awarded against the insured exhaust the personal liability limit

Medical payments under Coverage F of a Homeowners policy may be provided to all of the following people, without needing to establish negligence, except

a boarder

Coverage D- Loss of Use

additional living expense, fair rental value, and civil authority prohibits use, not from lease cancellation or business income

Watercraft Liability Endorsement

amends section II exclusion; more than 25hp, inboard motors, sailing >26ft jet boats. Excludes: race, rented, cargo, business and liability for employees

Coverage C- Personal Property

anywhere in the world; excluding roomers and boarders

Mobile Home Endorsements

attached to Broad Form HO-2 or Special Form HO-3; Coverage A for mobile home, structures and utility tanks attached, appliances, materials for construction B limit is 10%

Subrogation for Secion I & II

before a loss, waive rights of recovery

Comprehensive Form HO-5

broadest coverage, open perils; A,B: RC and C: ACV

Trees, Shrubs, Plants

by fire lightning, explosion, riot, aircraft, not owned vehicles, VMM, and theft 5% of Coverage A maximum $500 per tree; windstorm, hail or weight of snow is not covered

Personal Property Replacement Cost Endorsement

changes from ACV to RC for property insured by C, awnings, antennas, carpeting, household appliances, schedules jewelry, furs, ect. Fine arts, collectors, bad condition or stored articles are EXCLUDED; can't exceed $500.

Appraisal

choose an appraiser withing 20 days and umpire within 15 days

Section II Additional Coverages

claim expenses, premiums on bonds, actual loss of earnings, post judgment interest, first aid, damage to property of others $1,000 per occurrence

Business Pursuits Endorsement

commonly for teachers, involvement in a business that the insured does not own

Civil Authority Prohibits Use

covered for no more than 2 weeks

Motor Vehicle Liablity Coverage under Section II

dead storage, lawn mover, used for people with disabilities, rec vehicles on premises, golf carts excludes taxi cab, business cars

Broad Form Theft Limitations

dwelling under construction, premises rented to others, off premises theft not for trailers or non-temp basis, vacant for 60 days, fungi,

Residence Employee

employee of insured typically nanny or gardener

Personal Injury Endorsement

false arrest, malicious prosecution, wrongful eviction, oral or writing publication, Coverage E limit excludes: intentional, false, employee, business, civic activities

PP Endorsement Includes

fire, lightning, explosion, aircraft, collision, windstorm, earthquake, flood, theft, conveyance

Unit Owners Form HO-6

for condo owners, limited coverage for A , B, C, named perils, RC and C is ACV

Duties After Loss

give PROMPT notice, only if theft loss then call police, protect from further damage, cooperate with investigation, prepare inventory, send proof of loss within 60 days

The insured has a guest over at their house. Which of the following injuries would be excluded from coverage on the insured's Homeowners policy?

guest catches the flu from the insured

Building Alterations

if changes are make at own's expense, covered under 10% of Coverage C

Coverage C Property not Covered

insured elsewhere, animals, motor vehicles, aircraft, hovercraft, property of other tenants, off premises rented, business data, credit cards, water or steam; Business personal property, watercraft, and money are covered

Section II Insured

insured, on location with consent or employment, legally responsible for animals or watercraft

Scheduled Personal Property Endorsement

jewelry, furs, cameras, music instruments, silverware, golf equipment, fine arts, coins, stamps, property named; covered OPEN PERILS

Fungi, Wet/Dry Rot, or Bacteria Endorsement

loss payable under Section I, cost to remove, cost to replace, cost to test, Excludes: constant seepage of water

Insured

named and spouse, residents of household or under 21, under 24 if at school

Broad HO-2 coverage

named perils

Broad Form HO-2

named perils; 16 Broad Form named perils: fire and lightning, windstorm or hail, aircraft, riot or civil, vehicles, volcanic eruption, explosion, smoke, vandalism, theft, falling objects, weight of ice, accidental discharge of water, sudden tearing, freezing, artificially generated electrical current, watercrafts inside fully enclosed building

Additional Living Expense

necessary increase of living expenses including hotel, food, and laundry

Special Form HO-3

open perils for A,B; EXCLUDES: freezing, theft, vandalism, smoke, fungi, collapse, wear and tear, mechanical breaksown, smog, rust, pollution, settling, animals; named perils for C; A,B: RC :,AVC

Homeowner's Policy Eligibilty

owner-occupant; 1-4 residential units, 2 roomers, under construction, primary residence with business, mobile homes endorsement, NOT farm dwellings

Loss Settlement ACV value

personal property, awnings, carpeting, appliances, antennas, structures that are not buildings, grave markers NOT: dwelling

Earthquake Endorsement

physical loss by earthquake, land shock waves, and tremors; excludes damage to exterior masonry veneer(but can be added) floods, Limit A or C whichever is greater, $500 deductible

Exclusions for Coverage E

property owned by insured, rented, worker's comp, name insured, nuclear energy liability policy

An insured with a Broad Form Homeowners policy suffers a fire loss that damages the dwelling and personal property. The loss to the dwelling is valued at its:

replacement cost

Exclusions for Coverage F

residence employee off insured location, worker's comp, nuclear reaction, roommates, tenants, other than a residence employee

Insured Location

residence, boat slips, hotel room or rentals, vacant land that's not farm land, cemetery plots, rented non-business like banquet halls; NOT business

Coverage B- Other Structures for HO

set apart from dwelling; sheds, garages detached, pools; NOT : land, rented structures, business, store business property 10% of Coverage A

Watercraft Liability Coverage

stored, less than 26ft, 25hp outboard motor, rented boat more than 25hp, excludes races, business, sailing vessels >26ft , inboard motors

Property Coverages A-Dwelling

structures and attached, construction materials, NOT the land

Modified Coverage Form HO-8

to insure older homes, replacement costs are disproprtionately higher than market value; basic named perils, doesn't cover off premises theft, and limits for theft are $1,000; ALL: ACV, functional equivalent

Permitted Incidental Occupancies Endorsement

used for studios, offices, private schools located on premises

PP Endorsement Exclusions

wear, deterioration, insects, war, nuclear, repair, breakage, on exhibition at exposition or show

Duties After Occurrence in Seciont II

writen notice, cooperate with insurer, prompy forward notices, subrogation attempts, sorn statement of loss 60 days