THE STANDARD FIRE POLICY

Under the Standard Fire Policy, how many days advance notice does the insurer have to give before cancelling a policy?

5 days.

Rush is covered under a Standard Fire policy and suffers a loss to his home and personal property. The limit of liability listed on the policy itself is $120,000. The ACV of his loss is $55,000. To repair or replace the property with materials of like kind and quality would cost $72,000. Rush's insurable interest in the property is $42,000 as he has a mortgage and some liens on personal property. What is the amount of the claim settlement Rush will receive?

$42,000 The policy pays the smallest of the amount specified in the policy, the actual cash value at the time of the loss, the amount it would cost to repair or replace, and the insurable interest the insured has in the property. This would make Rush's settlement amount $42,000.

Under the 1943 New York Standard Fire policy, the appraisal clause indicates that each party in a dispute must select an impartial appraiser within:

20 days

Under the 1943 New York Standard Fire Policy, how many days of coverage applies to the removal coverage when the insured property is endangered by the perils insured against?

5 days

Payment for a covered loss under the 1943 New York Standard Fire policy must be made within ______ days after a satisfactory proof of loss has been received by the insurer.

60

Which of the following losses would be covered under the 1943 New York Standard Fire Policy?

A fire that is a result of a riot that causes property damage to the insured's property.

Which of the following basic coverages are provided under a Standard Fire policy?

Fire, lightning and removal.

All of the following statements are TRUE regarding the cancellation clause of the New York Standard Fire policy, EXCEPT:

If the insured cancels the policy, there is no financial penalty assessed on the unearned premium. If the insured cancels the policy, any unearned premium is returned on a short-rate basis, therefore a financial penalty IS assessed.

Under the Standard Fire policy, theft:

Is covered by the "removal" coverage if the property is stolen while the insured is attempting to remove the property to protect it.

All of the following are extended coverage (EC) perils that can be added to the Standard Fire policy by endorsement, EXCEPT:

Lightning

A "hostile fire" is defined by the Standard Fire policy as:

One that burns beyond its intended boundaries.

In which section of modern (current) property insurance policies such as a Homeowners policy, will the language and coverage of the 1943 New York Standard Fire policy be found?

Section I Section I of the modern property policies contains the language and coverage of the 1943 New York Standard Fire policy.

Which section of the 1943 New York Standard Fire Policy contains the information regarding the policy term?

The Insuring Agreement.

Which of the following statements is TRUE about the Standard Fire Policy?

The Standard Fire policy is no longer used in its original format.

The Standard Fire policy (SFP) contains an assignment clause. Which of the following statements is true regarding the assignment clause?

The clause states that assignment is permitted with the written consent of the insurer.

A Standard Fire policy frequently insures both a mortgagee and an insured under the same policy. All of the following statements are true regarding how a property loss will be paid under an SFP when there is a mortgage on the property, EXCEPT:

The insured receives payment from the insurance company for the entire loss and the insured is responsible for paying the mortgagee their portion of the payment.

All of the following are excluded under the 1943 Standard Fire policy, EXCEPT:

The theft of property after it had been removed from the insured premises to protect it from further loss.

The "concealment and fraud" provision of the 1943 New York Standard Fire policy permits the insurer to _________ if the insured willfully conceals or misrepresents a material fact before or after a loss.

Void the entire policy.