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
