Chapter 5 Exam

Which of the following perils is not a basic form (DP1) peril?

explosion

What is the minimum dollar coverage amount requirement for basic form coverage in a dwelling policy?

$0 no min coverage requirement

The insured has a DP2 broad form and has experienced a loss of $25,000 in cash which was stored in a mattress that was destroyed by fire. If the insured has Replacement cost coverage of $200,000, what is the total amount the insurer will pay for the lost money?

$200 without deductible, the most a dwelling policy will pay under coverage C for lost money including coins, precious metal or bank notes is $200 per occurrence

Under a dwelling policy, when will coverage begin?

12:01 AM on the date listed in the dec page

Under the settlement considerations clause of a DP policy, which of the following policies provides dwelling and contents on an ACV basis?

DP-1

Which of the following dwelling program policies ensures against loss to dwelling on it and open pearls basis?

DP3 the special form

G buys a DP-3 policy and pays additional premium For the personal liability supplement. Which of the following losses are most likely to be covered under this endorsement?

During a party at G's house, a friend falls down the stairs and breaks his neck

G I was drinking coffee at a local coffee shop and working on his laptop. He went back to the counter and ordered a danish and left his computer on the table. When he came back to his table his computer was gone. When G called his agent to report a claim under his DP3 policy, the agent informed G that while he was covered for theft, he was only covered for theft that occurred on his premises, G had:

Limited theft coverage

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 one. In DP1 up to 20% of the coverage A amount can be applied at the maximum rate of 1/12 Per month, if the loss of rental value warrants it. Also an amount paid under coverage D reduces the coverage A amount dollar for dollar under a DP1.

coverage A in a dwelling policy provides all of the following coverage except

does not cover damage or lost to the land itself. coverage A does cover supplies or materials in the dwelling intended to be used for repair or construction, and covers all structures attached to the dwelling.