Homeowners Section II (Liability)

Four types of Claim Expenses the insurer pays

"Expenses we incur", Premiums on bonds, reasonable expenses (up to $250), and postjudgement interest.

An occurrence as defined in the HO-3—Special Form (HO-3) is a(n)

An accident

Credit Card, EBT, Forgery, etc endorsement to HO3 increases

Coverage from a limit of $500 to a higher amount up to $10,000

The Claim Expenses additional coverage under Section II of a homeowners policy covers

The insured's reasonable expenses at the insurer's request.

Loss Assessment will pay up to

$1,000

Damage to property of others will pay up to

$1,000 to replace property that has been damaged by insured, regardless of fault or liablility.

Basic liability limits are

$100,000 per occurrence

The Inflation Guard endorsement gradually and automatically increases limits throughout the policy period in homeowners policies for Coverage(s)

A, B, C, and D. The endorsement provides an automatic increase in the amount of each of the Section I—Property coverages

Twelve exclusions to Section II E and F (some have numerous

Aircraft, Business, Communicable Disease, Controlled Substance, Expected or intended injury, Hovercraft, Insured's premises not an insured location, Motor Vehicles, Professional services, Sexual molestation, War, and Watercraft

The Section II Limit of Liability provision of the HO-3 stipulates that the limit of Coverage E—Personal Liability appearing on the declarations page is the total limit of coverage for

Any one occurrence

Four types of additional coverage under Section II

Claim Expenses, First Aid Expenses, Damage to Property of Others, and Loss Assessment

Section II includes

Coverage E Personal Liability, Coverage F Medical Payments to others, and additional coverages

the following are policy conditions that apply to both Sections I and II of the HO-3

Death, Liberilization, and Non-renewal

Duties of an injured person under Coverage F

Give insurer written proof of claim ASAP, authorize insurer to obtain copies of medical reports, and submit to physical exam.

Liberalization clause condition of Section II

If a policy form is broadened at no additional premium, the broadened coverage automatically applies to all existing policies of the same type.

Business exceptions to the exclusion

If insured received $2,000 or less during the year, volunteer activities, home daycare not involving compensation or to a relative

The Credit Card, Electronic Fund Transfer Card or Access Device, Forgery and Counterfeit Money Coverage—Increased Limit endorsement may be appropriate for

Insureds who hold credit cards.

The HO-3—Special Form (HO-3) policy

Is assignable only with the insurer's written consent.

Six exclusions for Coverage E only

Loss Assessment and Contractual liability, damage to the insured's property (is not a 3rd party claim), damage to property in insureds care (exception for fire, smoke, or explosion), bodily injury to persons eligible for workers comp, nuclear liability, and bodily injury to the insured.

The medical payments coverage in a homeowners policy covers certain medical expenses incurred by

Nonresidents of the insured's household. Coverage F—Medical Payments to Others covers medical payments incurred by others (not insureds or regular household residents) within three years of an injury.

Regarding the Other Insurance condition in Section II of the homeowners policy, the Coverage E limits applicable to any

Occurrence are paid as excess over any other collectible insurance except for other insurance written specifically to provide excess coverage.

Minimum requirements for a HOMEBIZ endorsement to HO3

Ownership by an insured, operation from the residence, and maximum of three employees

Motor Vehicle exclusion for any vehicle

Required by law to be registered for use on public roads or property, involved in an organized race, rented to others, used to carry persons/cargo for a fee, or is used for business purposes (except golf carts).

Nonrenewal condition of Section II

Requires insurer to give 30 days notice prior to not renewing.

Four exclusions that are applicable only to Section II F Medical Payments of Others

Residence employee off premises, bodily injury eligible for workers comp, nuclear reaction, and injury to residents.

Regarding watercraft liability coverage under the HO-3—Special Form (HO-3)?

Sailboats shorter than 26 feet owned by the insured are covered.

Coverage E includes coverage for

Third party loss exposures that result in bodily injury or property damage.

Motor Vehicle exceptions to the exclusion are

Toy vehicles powered by batteries, mv in dead storage, mv used solely to service a residence, mv used to assist the handicapped, mv used for off public roads and not owned by insured, golf carts in private communities (25 and under), and trailers not towed to or hitched to another mv.

Coverage F Medical Payments to others

is generally set at $1,000 per person per accident. Covers reasonable medical expenses when insured is not legally liable.

Severability of insurance condition

policy condition that applies insurance separately to each insured, does not increase the insurer's limit of liability for any one occurrence

The Subrogation condition in the HO-3 allows the insured to waive all rights to recover against any person provided the

waiver is in writing and made before the loss