Dwelling Insurance Module C

abrupt

Collapse-other cov included in all dwelling forms. this coverage applies only to ______ collapse- which is defined as an abrupt falling down or caving in of any part of bldg so it can no longer be occupied. This coverage does _____ increase the limit of liability

endorsement;DP-2; 20%

Coverage E- additional living expense- Remember coverage E must be purchased by an _______ to be added to DP-1 form. However, it is standard coverage on the ________ and DP-3 forms. these forms will provide up to ___ of Cov A limit for the additional expenses to the insd who must leave the covered dwelling and stay elsewhere. Coverage also applies until the insd is permanently settled.

$0-Flood is an excluded peril under all the dwelling forms unless a fire is caused by the flood and then only the loss caused by the fire is covered.

Dan insures a home for adequate limits under a DP-2. If a flood causes $1,000 in damage, what is the maximum the insurer will pay, disregarding deductibles? Answer Choices: Select the Correct Answer $0 $750 $250 $500

$10,000- If the insured carries 80% to value (co-insurance) he would be entitled to full replacement cost coverage for his damaged roof. Nothing to calculate here, full replacement cost is $10,000.

If the insured carries a DP-2 Dwelling form and insures the dwelling for 80% of its replacement cost value (the co-insurance requirement), what will he be paid if his 30-year-old roof sustains $10,000 in damages (disregarding any deductible)? Answer Choices: Select the Correct Answer $333 $5,000 $10,000 $8,000

10% of the Coverage C amount.

Jason has his home covered by a Dwelling policy with Coverage C included. When he transports covered property temporarily off the premises, it is destroyed by fire. How much coverage does Jason have to cover his destroyed property? Answer Choices: Select the Correct Answer 20% of the Coverage A amount. 10% of the Coverage C amount. 20% of the Coverage C amount. 10% of the Coverage A amount.

RCV; ACV

Loss settlements for -The dwelling & other structures- the DP-2 and DP-3 forms settle losses to the dwelling and other structures (coverage A &B) at _________. No deduction is made for depreciation as long as the insd has complied with the coinsurance clause. Loss settlement under DP-1 is on an ______ basis for Coverage A &B.

ACV

Loss settlements for personal property (coverage c) is made on ______ basis at time of loss. a deduction for depreciation is made. however, the settlement amount with not be for more than the amount necessary to repair or replace the property.

10%; additional

Ordinance or law- other cov included in all dwelling forms. coverage is for up to ______ of Coverage A limit may be used to cover increased cost of construction after a covered loss occurs due to enforcement of an ordinance or law regulating construction etc. This is an ___________ insurance

30

Our Option- this condition provides the insurer the right to repair or replace damaged property with material of like kind with in ________ days of receiving the proof of loss

30 days; 5 days

Property Removal- other cov included in all dwelling forms- the form covers personal property against direct loss from ANY CAUSE while being removed from the premises endangered by a peril insured against for no more than ______ (DP-2 & DP-3) while removed. Remember DP-1 is only for up to ____ days.

$500- they will cover the $500

Sam's home is located in a rural area and is covered by a standardized DP-2 Dwelling form with a $500 deductible form attached. He experiences a fire at his home and has to call the local volunteer fire department to extinguish the fire. He receives a bill from the fire department in the amount of $800. How much of the bill will Sam's DP-2 form cover?

$1500

The insured has suffered roof damage as a result of a tornado. He makes temporary repairs until permanent repairs can be made. He spends $1,500 for this work. How much, if any amount, will the DP-2 Dwelling policy pay on the repairs? Answer Choices: Select the Correct Answer $0 $1,000 $1,500 $500

Within 30 days of receiving the insured's proof of loss.

Under a standardized Dwelling policy, when an insurer opts to repair or replace the damaged property with like kind and quality, they must do so: Answer Choices: Select the Correct Answer Within 60 days of the loss. Within 60 days of receiving the insured's proof of loss. Within 30 days of the loss. Within 30 days of receiving the insured's proof of loss.

60

duties after loss- insd must give the insurer prompt notice, protect the property from further loss, keep accurate records when making repairs etc and send POL with in _____ days

DP-2 and DP-3; 60

glass or safety glazing material-other cov included in all dwelling forms. this coverage is considered an additional coverage ONLY under _____ and _____ forms *wont apply if premise has been vacant for ___ days

2 years

legal action against insurer- no action can be brought against the insurer unless there has been full compliance with all terms of policy conditions and the action started with _______ after the DOL

insured

loss payable clause- if a loss payee is listed in the declarations for insd personal property, the loss payee is considered an ______ w respect to that property and will be notified in writing in the insurer cancels/nonrenews policy

percentage; pro-rata

other insurance and service agreement- if there is "other insurance" covering the property the insurer will only pays its _______ of the loss. this is the ____________ method

notify

recovered property- if the insurer or insd recovers any property for which the insurer has made payment under the policy, the recovering party must _____ the other of the recovery.

conditions

the loss settlement methods are always located in the _______ section of the policy

10%; world; limit of liability

world wide coverage-other cov included in all dwelling forms. the policy will provide. insd may use up to ___ of coverage C limit of liability for loss by peril insd against the property covered under Cov C (except rowboats and canoes) while off the insured premised; anywhere in the ______use of this coverage reduces the Cov C ____________ for same loss

debris, property, repairs, additions, fire, collapse, glass, law, wide

"other coverages" that are included in ALL (DP-1, DP-2, DP-3) dwelling forms: _________ removal ________ removed resonable _______ improvements, alterations, and ____________________ ______ dept service charge Trees, shrubs, other plants ________ _____ or safety glazing material Ordinance or ____ World- ______ coverage

animals birds,aircraft, vehicles,boats,evidence,water or steam,markers, cards

Certain exclusions under dwelling policies that only apply to Coverage C (Personal Property) ___________, _______, fish __________ motor _________ _________, other than rowboats and canoes hover crafts accounts, bills, currency, _________ of debt damage caused by ______________ grave _____ gift _______

10%; additional

Coverage B- coverage for "other structures" under all 3 dwelling forms is ____ of coverage A limit. the difference under the DP-1, is that the 10% coverage is part of dwelling limit. With the DP-2 and DP-3 forms, this is an ______ amount of insurance. APPURTENANT STRUCTURES may be used on exam to refer to other structures

prevent

Reasonable Repairs-other cov included in all dwelling forms- in the event that covered property is damaged by an insd peril, the insurer will pay the reasonable cost incurred by insd for necessary measures taken to _______ against further damage.

$500- In this situation, Company C will pay $500. 5% of $10,000 is $500. You should be able to figure this in your head by asking yourself "What is 10% of $10,000?" 10% of $10,000 is $1,000. Then, you can simply figure that 5% is half of 10%, which would be $500.

An insured has his home covered under Dwelling policies with three different insurance companies. Company A provides 50% of the coverage, Company B provides 45% of the coverage, and Company C provides 5% of the coverage. When settling a claim for $10,000 worth of damage to the dwelling, what will Company C pay?

guests;, 10%

Coverage C-personal property. there is also coverage for personal property of the insured/ owner away from the insd premises. This coverage does NOT apply to ________ property. this coverage is limited to _____ of Cov C amount purchased for all personal property. For coverage to appyly, loss must have been caused by a peril covered by Coverage C

20%;additional; 20%

Coverage D: Fair rental value- the limit for "fair rental value" under the DP-1 is _____ of Coverage A, paid at 1/12th of the total amount until the rental property is restored. this is NOT _________ coverage; it is included in the Cov A limit. Under DP-2 and DP-3 forms _____ of Coverage A limit is included as an additional amount of insurance.

debris of covered property; ash, dust or particles from volcanic eruption. NOT

Debris Removal- (other cov included in all dwelling c the insurer will pay the insd's reasonable expense for the removal of: 1. ________________ if a peril insd against caused the loss 2. _________________________ that has caused direct loss to a bldg or property contained in a bldg *cost of debris removal is included in the limit of liability- it is ________ an additional insurance

ordinance, earth, flood, power, war, nuclear, government

Exclusions that apply to all 3 dwelling forms: 1. losses resulting from __________ or laws that require insd to test for, monitor, clean up pollutants 2.______ movements; including mudslides, sinkholes 3. water damage cause by _______ 4. ______ interruption that occurs away from insd's location 5, losses that occur b/c insd failed to ____________________ after a loss 6. ____ 7. _______ hazard 8. _______ action

$500, an additional insurance, no

Fire Dept Service Charge- other cov included in all dwelling forms. the policy will provide _______ to pay for fire dept charges when the the fire dept is called to save or protect covered property. The coverage is _______________ insurance and ___ deductible applies.

tenant,10%,improvemnts, alterations, NOT, additional

Improvements, alterations, and additions- other cov included in all dwelling forms- if the insd is a ______ of the descrbed location, they may use up to _____ % of coverage C limit of liability for loss by an insd peril. This cov may pay for: __________ _______ & additions made or acquired made *this is _____ an additional coverage under the DP-1. this cov is included in the limit of liability for Cov C. Under forms DP-2 and DP-3 it is an ____________ amount added to the available limit for cov. C

10% of the Coverage A limit as additional insurance.

Kari has her home covered under a DP-3 form and has suffered a loss that will require major repairs. How much coverage does she have to comply with laws causing an increase in costs due to new regulations requiring newer plumbing materials be used when the repairs are made? Answer Choices: Select the Correct Answer 10% of the Coverage A limit that reduces the limit of liability. 20% of the Coverage A limit as additional insurance. 5% of the Coverage A limit that reduces the limit of liability. 10% of the Coverage A limit as additional insurance.

fire or lightning; riot; aircraft;vehicles; vandalism;

Trees, shrubs & other plants- other cov included in all dwelling forms. covers trees, shrubs, plants or lawns on the covered premises is loss is caused by these perils: 1. _______________ 2. explosion 3. ______ or civil commotion 4. _______ 5. ____ not owned or operated by insd 6. _______ or malicious mischief; including damage during burglary but NOT left of property *** peril of WINDSTORM or HAIL is NOT included.

12,000

Under a standardized DP-2 or DP-3 policy, what is the maximum that would be paid for additional living expenses if Coverage A was $60,000?

Lightning

Which of the following is NOT a general exclusion of all the Dwelling policy forms? Answer Choices: Select the Correct Answer Nuclear hazard. Lightning. War. Flood.

A canoe used on the premises by the insured.

Which of the following is NOT excluded under Coverage C of a Dwelling policy? Answer Choices: Select the Correct Answer An expensive dog purchased by the insured as a pet. An expensive sports car stored in a covered garage. A granite marker on a grave located on the insured premises. A canoe used on the premises by the insured.