Chapter 4: Dwelling Policy

All of the following are true about liability, except: A) Liability policies pay costs incurred by an insured to sue negligent third parties B) A loss may take place over a period of time rather than all at once C) The burden of proof is on the injured party to prove that the other party was negligent D) Breach of contract is not considered an act of negligence

A

Under a Dwelling Policy, the coverage extension of Debris Removal will pay for: A) The removal of the debris caused by an insured peril B) The removal of debris from an automobile accident on insured location C) The removal of debris resulting from the action of a civil authority D) The removal of debris resulting from demolition required by an ordinance or law

A

Which of the following losses would be covered under the Dwelling Policy DP-1? A) Fire damage to building materials on the insured premises B) Damage caused by a backup of the sewer pipes C) Collapse caused by insect damage D) Land subsidence of the insureds land

A

Which statement is true regarding Personal Liability Supplement to the Dwelling Policy? A) The supplement provides coverage for claim expenses B) The supplement covers professional services rendered by the insured C) The limit of liability is the same as the Coverage A amount D) The supplement covers damage to the insureds personal autos

A

Under a dwelling policy, an insured tenant may use up to what percentage of the Coverage C limit of insurance for a covered loss to improvements, alterations, and additions made at the insureds expense to that part of the described location occupied by the named insured? A) 10% B) 20% C) 0% D) 5%

A) 10%

Which form is DP-1? A) Basic Form B) Broad Form C) Special Form D) Extra Form

A) Basic Form

The DP-3 provides what coverage for damage to the insureds dwelling due to a power failure when lightning strikes a power transformer 2 miles away? A) No coverage B) 10% of Coverage C C) Coverage A amount D) 10% of Coverage A

A) No coverage

Which form would not insure against external explosion? A) Unendorsed DP-1 B) DP-3 C) DP-2 D) Endorsed DP-1

A) Unendorsed DP-1

Which statement is true concerning Dwelling policies? A) 100% of Coverage C applies to worldwide coverage B) The Special Form insures the dwelling on an open perils basis and the contents against the broad form perils C) The Basic Form pays for losses to dwelling on a replacement cost basis D) The Special Form automatically covers the contents against the peril of theft

B

What form is DP-2? A) Basic Form B) Broad Form C) Special Form D) Extra Form

B) Broad Form

Policyholder M insures her owner-occupied single family residence under a dwelling property policy (DP-3) with a limit of $100,000. If the dwelling is damaged in a fire, what policy will pay for M's extra costs to stay in a hotel an board her pets while the fire damage is being repaired? A) Coverage D B) Coverage E C) Coverage C D) Coverage B

B) Coverage E

Which DP form does not cover burglar damage? A) DP-2 (broad form) B) DP-1 (basic form) C) None of the Dwelling forms cover damage by burglars D) DP-3 (special form)

B) DP-1

What form is DP-3? A) Broad Form B) Special Form C) Extra Form D) Basic Form

B) Special Form

Which of the following property is not covered under Coverage A of a Dwelling Policy? A) Fire or lightning damage to outdoor television antennas B) The land on which the dwelling is located C) Outdoor equipment on the location used to service the dwelling D) Materials for repairing the dwelling, located on the described location

B) The land on which the dwelling is located

All of the following statements are correct regarding the Fire Department Service Charge in Dwelling Policies, except: A) The coverage is additional insurance B) The policy will pay up to $1,000 C) The policy deductible does not apply to this coverage D) Coverage is not provided if the premises is within the same jurisdiction as the fire department

B) The policy will pay up to $1,000

Choose the claim that is not covered under the Dwelling Broad Form (DP-2)? A) Accidental discharge or overflow of water from a household appliance B) Theft of personal property at the insured premises C) Glass that is a part of a storm door D) Damage caused by burglars

B) Theft of personal property at the insured premises

Special Form dwelling coverage: A) Provides coverage against named perils B) Is limited by the named exclusions C) Includes coverage for catastrophic perils D) Provides coverage against scheduled risks

B) is limited by the named exclusions

Under the Basic Dwelling Form, losses are paid on which basis? A) Replacement Cost B) Agreed Value C) Actual Cash Value D) Market Value

C) Actual Cash Value

Coverage D of the Dwelling Policy provides coverage for: A) Trees, shrubs and other plants B) Other structures C) Fair Rental Value D) Additional Living Expenses

C) Fair Rental Value

Which of the following would not be covered under Coverage B? A) Pole barn B) Shed C) Grain silo D) Swimming pool

C) Grain silo

What are the 5 Dwelling Coverages?

Coverage A: Dwelling Coverage B: Other Structures Coverage C: Personal Property Coverage D: Fair Rental Value Coverage E: Additional Living Expenses

Which of the following coverages is not provided by the Personal Liability endorsement? A) Medical payments to others B) Defense costs C) First aid expenses D) Injury caused to a regular resident of the dwelling

D

Which of the following is true regarding the Personal Liability Supplement? A) It covers the insureds personal autos B) It covers Professional Services rendered by the insured C) The limit of liability is the same as the Coverage A amount D) It provides coverage for claim expenses, first aid expenses and damage to property of others

D

Which of the following perils would be covered under a Dwelling Policy? A) Overflow of water from a sump pump B) Water leakage in a driveway C) Water accumulating below the surface of the ground D) Water discharge by a plumbing failure

D

Under all Dwelling Forms, the dwelling described in the declarations is covered under: A) Coverage C B) Coverage B C) Coverage E D) Coverage A

D) Coverage A

Of the Dwelling Policy forms, which one would cover an owned mobile home affixed to a foundation? A) DP-2 B) DP-1,2&3 C) DP-3 D) DP-1

D) DP-1

Under which form is the Coverage B limit included in the overall policy limit represented by Coverage A? A) DP-4 B) DP-2 C) DP-3 D) DP-1

D) DP-1

Sudden and accidental damage from artificially generated electrical current best describes a(n): A) Power Failure B) Internet explosion C) Mechanical breakdown D) Power surge

D) Power surge

All of the following perils are included under the dwelling broad form, except: A) Falling objects B) Volcanic eruption C) Burglary Damage D) Smoke damage from industrial operations

D) Smoke damage from industrial operations

The Dwelling Broad Form (DP-2) insures against all of the following perils, except: A) Breakage of glass that is a part of building, storm door or window B) Accidental discharge or overflow C) Damage caused by burglars D) Theft

D) Theft