P&C Exam
What is the Coverage F limit that automatically is provided in a homeowners' policy?
$1,000 Reason Sometimes this coverage is called "Guest Medical" because it only pays for medical bills of others, not medical bils of the insured or resident relatives. This coverage comes with a limit of $1,000 per person but could be increased for extra premium.
Workers' Compensation insurance premiums are based on what amount of payroll?
$100
If a policyholder has liability limits of 250/500/100, what is the most that would be paid for a property damage claim?
$100,000 The default (automatic) liability limits for an auto policy in Michigan is $250,000 Bi per person / $500,000 BI per accident / $10,000 PD (250/500/1G) An insured may sign a form to reduce these limits to as low as $50,000 / $100,000 / $10,000.
Lydia has an auto policy with a liability limit of $100,000. She also owns an umbrella policy with a limit of $1 million. Lydia injures Garrett in an auto accident and Garrett sues Lydia for $250,000. How much would Lydia's umbrella policy pay?
$150,000
Fernando has underinsured motorist coverage of $300,000. Shaniqua has bodily injury limits of $100,000. Shaniqua injures Fernando in an auto accident and he sues for $250,000. How much will Ferenado receive from his policy?
$150,000 Reason Jeremiah DID have valid auto insurance, but only had $50,000/$100,000 Bodily Injury limits, and Tanisha's injuries were worth $90,000, Then Jeremiah's policy would pay the first $50,000 and Tanisha's policy would make up the other $40,000 because Jeremiah did not carry an adequate amount of insurance for the claim!
Stefani buys a house with a replacement cost of $200,000. What is the minimum amount of Coverage A she should purchase to have claims paid on a replacement cost basis?
$160,000 Reason ("Did" divide by "Should" ") multiply by the loss [Insurance limit purchased (Did)] Divided by [Minimum insurance limit required (Should)] Multiply by loss amt = claim payment To determine the amount the insurance company would pay in a co-insurance penalty situation, there is a short process and formula to apply. What is the minimum amount insurance is required? The minimum amount required would be the full replacement cost multiplied by 80%. If they have met this requirement, then a partial loss would be paid in full. If not, proceed to item 2. Since the insured did not meet the co-insurance requirement, we will apply this formula (it is easy to remember - ("Did" divide by "Should" ") multiply by the loss [Insurance limit purchased (Did)] Divided by [Minimum insurance limit required (Should)] Multiply by loss amt = claim payment
The Personal Auto Policy automatically provides what limit for replacement transportation expenses?
$20 per day with a maximum of $600 Reason If there is a collision or comprehensive claim (not mechanical breakdown), the policy will pay for a rental car, UBER or taxi costs, even bus fare, up to $20 per day, to a maximum of 30 days (5600).
What is the limit of coverage required by the Motor Carrier Act of 1980 for OIL haulers?
1,000,000 Reason $1,000,000 for transportation of oil or other hazardous materials (bad stuff, but not too bad)
How many days notice does the insurer have to give to the first named insured in a Commercial Package Policy (CPP) if they are being cancelled for non-payment of premium?
10 days Reason a homeowner policy is going to be canceled within the first 55 days of a policy period, the insurancel company must provide a written notice at least 20 days prior to the cancellation and provide the reason for the cancellation. Cancellation reasons can include if the risk is unacceptable to the insurer or physical conditions that may create a significant liability loss, If the cancellation takes place after 55 das into the Next 62
A homeowner's policy provides what percentage of Coverage A for Other Structures?
10% Reason Coverage B Other Structures 10% of Coverage A
How far away can you go with your business personal property and still be covered in a Businessowners Policy?
100 feet
Coverage in a Standard Fire Policy starts at
12:01 AM
Within how many days of a producer signing a contract to represent an insurer must the insurer fila a notice of appointment with the Director of Insurance?
15 days Reason The insurance company must notify the state within 15 days of that first application or of signing the agency contract.
To maintain a resident producer license, how many hours of continuing education must be completed every 2 years?
24
How many hours Ethics continuing education must a producer complete every two (2) years?
3 hours
If a producer changes their address, how long to they have to notify the Director?
30 days Reason Change of Name - Change of Address If a resident producer changes their name or address (mailing, business, or residential), the producer must notify the Director within 30 day
What amount of wage loss coverage is provided in a Michigan Worker's Compensation policy?
80% of the employees after tax weekly wage
If a married couple are insured on a homeowner's policy and one of them move out, how long would they be covered?
90 days Reason The named insured and their resident spouse (IMPORTANT! If the spouse is not named as an insured on the declarations page and move out of the residence over 90 days, they will no longer be an insured)
An HO-3 policy provides property coverage valuation in which way?
?
An electrician installing new wiring crosses the wires and damages the electronics in the refrigerator and the wires being installed. Which is correct?
?
Mike has a homeowner's policy with Coverage F limit of $300,000 and an umbrella policy with a $1,000,000 limit. Mike has a small engine repair business in his polebarn. After fixing Alanzo's lawnmower, it explodes in Alanzo's garage and burns down his house. How much will Mike's umbrella pay?
?
The personal injury endorsement covers all of the follwing, EXCEPT
?
What is the time frame for Medical Payments coverage in a homeowner's policy to pay a claim?
?
Which is not found in the Insuring Agreement?
?
Which type of watercraft is eligible for a boatowners policy?
A 18-foot fishing boat Reason Boatowner policies are designed for boats that are UNDER 26 feet in length and will cover the boat, motor and trailer (but will NOT cover personal items like fishing gear).
A homeowner stores a gasoline can next to their barbeque grill. This is an example of
A hazard
Which is not included in Coverage A of a Homeowners policy?
A polebarn Reason Coverage A covers the dwelling and structures attached to the dwelling (like attached garages) as well as materials and supplies on premises used to repair, construct, or alter the dwelling. The dwelling includes heating, cooling, electrical and plumbing systems!
Who is required to carry Workers' Compensation Insurance?
A public employer Reason All public employers including the state, a county, city, township, incorporated village, or school district, as well as each incorporated public
Which type of business is not eligible for a Businessowners Policy (BOP)?
A tavern Reason Also, the type of business operations is important for eligibility. As was noted, the BOP is for low-risk businesses. The types of businesses that are NOT ALLOWED to have a BOP are: General Contractors (Specialty Contractors like electricians, plumbers and carpenters are OK) Manufacturing risks Banks, Credit Unions, or Financial Institutions Automobile Repair (go get Garage Liability) Bars and Taverns Municipalities (governmental units like villages, townships, counties, cities) Places of Amusement (movie theaters, arcades, etc.) Personal Household Items (go get a homeowners policy) Restaurants that have deep fat frying (making French fries!)
An unendorsed homeowner's policy method of valuation for personal property is
Actual Cash Value Reason Losses to personal property (Coverage C) is paid at Actual Cash Value on an UNENDORSED policy
How is Business Income covered in a Businessowners Policy (BOP)?
Actual Loss Sustained
Who has coverage for liability in a Personal Auto Policy?
An unlicensed 15 year old Reason The auto policy considers anyone who is a family member and anyone with permission to use the insured vehicle
If there is a dispute between the insurer and insured as to the value of a claim, what clause applies?
Appraisal Reason Appraisal is the process agreed to in the policy conditions (property policies ONLY) when the insured and the insurance company do not agree on the value of the amount to be paid for a loss. This is NOT used if the insured and insurance company disagree on whether there is coverage or not. 29 The insured and the insurance company choose and pay for their own appraiser (the insurance company typically has their own claims adjuster as their appraiser) and they have 20 days to do so. Then, the two appraisers choose an umpire appraiser and must do so within 15 days. The cost of the umpire appraiser is split between the insured and the insurance company. Once two out of the three appraisers agree on a valuation of the disputed property, that is the amount the insurance company will pay.
A disagreement on value in an uninsured or underinsured motorist claim uses what method?
Arbitration Reason If there is a dispute as to how much Part C of the policy should pay Tanisha, a process of ARBITRATION is used, not appraisal. Arbitration is similar to appraisal, but Arbitration not only deals with the amount that should be paid but is also going to be the process to decide whether there is, or is not, coverage available.
Liquor Liability Insurance can be purchased on which basis?
Both Occurence and Claims-Made Reason This policy is for businesses that are in the business of manufacturing, distributing, selling or furnishing alcoholic beverages. States have dram shop laws which require these businesses to carry a minimum amount of insurance. This insurance will pay Bodily Injury (BI) claims that arise out of the intoxication of an individual caused by the business (a patron was overserved). The Commercial General Liability (CGL) policy excluded liquor liability making this policy necessary. While earlier it was noted that these specialty policies were on a claims made basis, Liquor Liability can be purchased on EITHER an occurrence or claims made basis. |
Inspections and surveys would be found in which section of a Commercial Package Policy?
Common policy conditions Reason inspections and Surveys The insurance company has the right to make inspections or surveys of the insureds business at anytime. The company may provide a report of the inspection or surely recommendations changes.
Tom purchases two different insurance policies on his home. Company A has a limit of $100,000 and Company B has a limit of $50,000. The home has a fire loss of $15,000. How much will each company pay?
Company A pays $10,000 and Company B pays $5,000 Reason The formula for Pro-Rata is: Question An insured has two insurance policies covering a home. Insurance Policy Y has a coverage limit of $10,000 and Insurance Policy Z has a coverage limit of $30,000. The insured home has a fire causing $10,000 in damage. How much will each insurance policy pay? Answer Using the formula above: Insurance Policy Y - $10,000 / $40,000 = 25% x $10,000 = $2,500 payment Insurance Policv Z - $30,000 / $40,000 = 75% x $10,000 = $7,500 payment This determines how much each policy's share of the loss is without over-indemnifying the insured.
Damage done by a fire is best described as a
Consequential Loss Reason Indirect loss is a consequential loss as the result from a direct loss. Examples of indirect loss include loss of rental income due to house fire, which causes a loss of profits for the landlord. The indirect loss is always consequential of the direct loss. The more time that goes by to repair or replace the property, the larger the indirect loss will be. Indirect losses are sometimes called time element losses.
To receive a fee for advice on insurance, a person must have what type of license?
Counselor Reason counselor is anyone who provid for a fee reparding any insurance policy. To receive a fee, they must be licensed as a counselor. This is a separate and distinct license from a producer. However, they do not need to be agents or individuals who advise individuals such as lawyers or accountants. To obtain a counselor's license, the individual must complete an application, pay a fee, and pass an exam. When acting as a counselor, the counselor must:
Which type of loss would be covered by a homeowners' policy?
Damage by a raccoon Reason Earlier it was noted that Special Form (or Open Peril) provided coverage for all perils EXCEPT for the exclusions listed. So, Special Form coverage has the largest list of exclusions. The additional exclusions specifically for Special Form are: Mechanical Breakdown Discharge of Pollutants Normal Wear and Tear Discharge from Agricultural Smudging Smog, Rust, Dry Rot or Corrosion Birds, Vermin, Insects or Rodents Settling, Bulging/Expansion, or Shrinking of a structure Animals Kept by an Insured ( damage caused by other animals would be covered) Freezing of Plumbing
A property damage liability policy offers protection for which of the following losses?
Damages done to a gas station due to insured's parking collision. Reason Property damage liability insurance covers liability arising from physical damage to a third party's property caused by an insured.
A property damage liability policy offers protection for which of the following losses?
Damages done to a gas station due to insured's parking collision. Reason Property damage liability insurance covers liability arising from physical damage to a third party's property caused by an insured.
For a business entity to have an insurance license, who must be listed as being responsible?
Designated Responsible Licensed Producer Reason Another license type is a business entity license (agency). Business entities that act as an insurance producer must have a license. A business entity must complete an application, pay a fee and then name an individual with a residant producer license as the Designated Responsible Licensed Producer (DRLP) This individual can be held responsible for the insurance transactions of the business entity.
Which is an endorsement than can be purchased on a homeowner's policy?
Earthquake Reason Earthquake is excluded on all homeowner policies, but this endorsement can provide coverage, It's not much in demand in Michigan, but it is available. The endorsement imposes a different deductible that the standard policy deductible. Earthquake has a percentage % of Coverage A deductible. If this endorsement were to be added with a 5% deductible, and Coverage A was $100,000, then the earthquake deductible would be $5,000. Also, any earth movement that happens within a 72-hour period is considered to be ONE earthquake. This is to account for the initial earthquake and any subsequent aftershocks.
Which is an optional coverage in a Businessowners policy?
Employee dishonesty
Authority that is given to a producer either verbally or in writing is called
Expressed Authority
The rates for flood insurance is determined by
Federal Emergency Management Agency (FEMA)
In a personal auto policy, which of the following would not be considered occupying a vehicle?
Getting out from underneath an automobile Reason Occupying means being in a vehicle; being upon a vehicle; or getting into, onto, out of, or off of a vehicle. For the state exam, getting out from underneath a vehicle is NOT considered to be occupying.
Which is not in the coverage territory of the commercial building and personal property coverage form?
Great Britain
A person who rents a condominium would purchase a
HO-4
A person who rents and apartment would purchase a
HO-4 Reason HO-4 Renters N/A (no structure coverage is needed) Broad
What section of an insurance policy informs the insured as to what perils are covered?
Insuring Agreement Reason An insured has the option of selecting one or many types of crime coverage. Each coverage type is called an Insuring Agreement (remember, an insuring agreement lists the perils covered and are numbered.
Which section of a policy provides the definitions of pronouns used in the policy?
Insuring Agreement Reason So, the insurance company does not need to specifically name itself and the policy holder throughout the policy, the policy will utilize the words "you and your" and "we, us and our" throughout the contract. The insuring agreement is where the definition of these terms is located. "You and your" is defined as the persons or entities listed as an insured on the Declarations
The Federal Employers Liability Act (FELA) applies to which of the following groups?
Interstate railroad employees
What endorsement provides coverage to a leasing company?
Lessor as an Insured Reason There is no extra premium for this endorsement and is utilized when an insured leases a vehicle. The Lessor (owner who is leasing the vehicle) will be provided coverage for liability, as they could be held responsible for injuries caused by the insured (Lessee) in the course of operating the vehicle.
Which endorsement would allow a leasing company to be added as an insured to a business auto policy?
Lessor as insured
All of the following are Supplementary Payments in a liability policy, EXCEPT
Loss of Use Reason Liability policies also include additional coverage called supplementary Payments. These payments are in addition to the policy's limit of coverage, do not cost extra, and are automatically included. We use the acronym BAILED to remember these supplementary payments. Bonds - premiums for certain types of bonds, such as bail bonds, appeal bonds, and release of attachment bonds Aid (first aid) - First aid to others at the time of an accident Interest - Any interest that accrues on court-ordered payments Loss of earnings - Loss of earnings of the insured (such as when the insured must miss work for a court appearance) Expenses - Reasonable expenses of the insured to assist in the defense of a claim Defense costs - The cost of hiring an attorney to defend the insured even if it turns out the insured is not lable.
Which organization exists to pay claims of policyholders from insolvent insurance companies?
Michigan Property and Casualty Guaranty Association
Which of the following would not be found on the Declarations page?
Perils Insured Reason The who, what, when, and where is found on the Declarations page, which is always the first page of a policy. There is a plethora of information on the Declarations page, which include: The name of the insured The location (address) Description of the property Limits of coverage Amount of deductible Policy term (when does coverage start and end) Mortgagee or lienholder (auto insurance) Amount of premium Policy number Listing of any endorsements
A Personal Auto Policy in Michigan must include Residual Liability, Property Protection Insurance, and
Personal Protection Insurance Reason Part D - Physical Damage to your auto These parts will be examined later in this chapter, as will Michigan specific coverages. It is important to note as you read that there are three (3) coverages that, at a minimum, MUST be included: Residual Liability (in Part A - Liability) Property Protection Insurance (in Part A - Liability Personal Protection Insurance (in Part B - Medical Payments)
If an insurance policy is cancelled and the insurer returns the unearned premium without any reduction, this would be referred to as what type of cancellation?
Pro-Rata Reason When an insured cancels a policy before the expiration date, the insurer MAY provide a prorated refund or impose a surcharge or a penalty for early cancellation, which is called a short-rate cancellation
A homeowner's policy is a combination of what two types of coverage?
Property and Liability Reason Homeowmers policies provide a tremendous arount of coverage to policy holders. The homeowners policy is considered to be a package policy (or a multi-line policy) because it provides more than one major type of insurance coverage. This policy provides BOTH property and liability coverage and is organized into sections
Liability insurance pays for all of the following EXCEPT
Punitive Damages Reason Punitive Damages Punitive Damages are separate from and can be awarded in addition to Compensatory Damages. Punitive Damages are awarded by a court to act as a punishment to the wrongdoer and to act as a deterrent to others to not engage in a similar activity. The court is essentially saying what the wrongdoer did was so bad, that they have to pay more than just Compensatory Damages. Sometimes Punitive Damages are also called Exemplary Damages because the court is making an example to others. Punitive Damages are typically NOT covered by insurance.
The Federal Employers Liability Act (FELA) applies to
Railroad workers Reason Federal Employers Liability Act (FELA) This law deals with United States Postal System employees and interstate railroad workers.]
Which loss scenario is considered collision?
Rolling a vehicle into a ditch Reason Collision coverage is fairly limited in that it only provides coverage for specific perils (this is named peril coverage). The two named perils of Collision are: Contact with an object (an object could be stationary like a telephone pole or tree, another vehicle being used as a vehicle, or even a pothole. An animal is NOT an object.)
An unendorsed Businessowners Policy provides what cause of loss form?
Special Reason The unendorsed BOP comes with Special perils automatically. An insured could endorse the policy and walk back the perils to Basic which saves premium.
When a producer's contract is terminated, what party provides the producer with the termination notice?
The Insurer
An insured bought an automobile and finances the purchase through a bank. Which party does not have insurable interest?
The driver of the automobile Reason Insurable Interest means that a person would suffer a financial loss due to a covered peril. Insurable Interest must be established at the time of a claim. Simply owning something can create Insurable Interest If I own a car and purchased insurance on it, if damage happened to the vehicle, the insurance policy would pay for the damage because without it, I would be the one who would have to pay for the repairs (or suffer the financial loss). If I sell the vehicle and still keep the insurance policy in force, and then the new owner sustains damage to the vehicle, my policy will not pay. I received payment for the vehicle when it was sold, and I did not suffer a financial loss, so there is no insurable interest on my part The new owner should have their OWN insurance policy to protect their financial interest.
Which is a valid reason to deny a Workers Compensation claim?
The employee willfully and intentionally injured themselves
The Experience Modification Factor adjusts the premium based upon
The employer's loss ratio Reason The actual loss experience of a business is taken into account and an experience modification factor is used to make an adjustment to the premium
Residual Liability in a Personal Auto Policy would respond to which of the following claims?
The injured party's loss of income
Which statement is not true regarding the termination or nonrenewal of a home or auto policy?
The notice must be 55 days long (Correct Answer)
What is the purpose of Underinsured Motorists coverage?
The other driver does not have enough coverage Reason REMEMBER - Uninsured Motorist is if the at-fault driver has NO coverage. Reason Underinsured Motorist is it the at fault driver HAD coverage, but it wasn't enough
Which of the following is correct for amounts paid as supplementary payments covered in the personal auto policy Part A - Liability?
They include defense attorny cost to the insured. Reason Supplementary payments are paid in addition to the limit of liability and include payment for bonds, aid, interest, loss of earnings, expenses, and defense.
What is the purpose of a deductible?
To reduce the overutilization of insurance Reason A deductible is common on property policies, A deductible is the amount that the insured must pay toward the loss before the insurance company begins paying on a daim. The higher the amount of the deductible, the lower the insurance premium. The purpose of a deductible is to prevent overutilization of insurance, meaning the insurance company doesn't want insureds to turn in small claims.
If a producer misrepresents the terms of an insurance policy to convince a prospect to cancel their current insurance and start a new policy with the producer, this is called
Twisting Reason Twisting is using a misrepresentation to induce a person to drop their existing insurance and purchase new insurance with the new producer's compary. We are twisting the facts or "making" things up to get the insured to switch over to the producer.
A contract where the insurer must perform certain duties is
Unilateral Reason Insurance policies are unilateral, or one-sided, contracts because only one party is legally bound to perform under the contract. The insurance company makes a legal promise to pay for a covered claim. The insured can stop paying premiums and abandon an insurance contract at any time. The insurer does not have this flexibility. As long as the insured keeps the contract in force by paying the premiums, the insurer is reguired by law to pay for any covered losses that occur. I
What is the coverage limit for medical benefits in a Workers' Compensation policy?
Unlimited Reason Medical benefits pay for the cost of various types of medical services required because of an employment-related injury or disease. Payment for medical expenses are UNLIMITED with no deductibles or co-insurancel
What forms the basis of a loss under an insurance policy?
a loss Reason Aloss is the basis of a claim made under an insurance policy.
Chapter 45 of the Insurance Code deals with fraud. All of the following are considered financial losses, EXCEPT?
additional premium
The authority a producer has based upon a client's perception of what they can do is
apparent authority
Which method of risk management is used when a person chooses NOT to drive because of the risk of having an automobile accident?
avoidance Reason When we do not undertake an action, we are avoiding it. This applies to risk management and insurance, as well.
To be eligible as a resident producer in Michigan, an applicant must meet all of the following requirements, EXCEPT
be a United States citizen Reason Requirements to becore a licensed producer are: Must be at least 18 years of age Complete an approved pre licensing education course and pass the exam within one year of course completion Apply for the license through the National Insurance Producer Registry (NIPR) Pay the application fee Pass the exam 18 Not have committed any acts or grounds for denial, suspension, or revocation of a license Lastly, an applicant must reside in the State of Michigan. However, they do not need to be a United States citizen.
Bodily Injury includes all of the following, EXCEPT
defamation of character Reason Personal Injury gets confused with Bodily Injury. Remember, Bodily Injury is OUCH! You hurt my body. Personal Injury is - you said mean things about me and hurt my feelings. This endorsement would protect an insured if they were sued for libel, slander, defamation of character, invasion of privacy, and false arrest. Since a person isn't physically harmed, medical payments would not apply
What endorsement can be added to the Personal Auto Policy to provide coverage for a company car?
extended non-owned auto Reason Extended Non-Owned Coverage - Vehicles Furnished or Available for Regular Use This endorsement removes the exclusion for company automobiles (furnished or available for regular use) in the definition of a covered auto and affords the insured with EXCESS or SECONDARY coverage to PRIMARY coverage provided by the owner of the vehicle (the insured's employer).
A tornado destroys a home. The cost of a hotel to provide temporary housing is called what?
indirect loss Reason Coverage D provides for indirect or sometimes called conseguential losses. If there is a covered property loss (a direct loss, damage to physical property), and the residence is deemed uninhabitable because of the property loss.
All of the following information is found in the insuring clause, EXCEPT
loss payment options
The Michigan Auto Insurance Placement Facility exists to
make sure coverage is available Reason Michigan Auto Insurance Placement Facility (MAIPF) This organization exists as an "insurer of last resort" (also known as The Pool) for individuals who do not meet standard underwriting rules and are not eligible for standard auto insurance. This "Facility" is made up of all automobile insurers in Michigan. Rates are based on a weighted average of rates used by the five largest automobile insurers in Michigan and by applying surcharges to those rates. Applicants must have a motor vehicle registered in Michigan or have a valid Michigan driver's license. Anyone who has a suspended or revoked license are not required to have Michigan auto insurance or who have had their auto insurance policy canceled for non-payment of premium in the last two years can be refused a policy.
Which endorsement can be added to the Personal Auto Policy to provide coverage for a motorcycle?
miscellaneous vehicle Reason Miscellaneous Type Vehicle Adding this endorsement will allow many vehicles that did not meet the definition of an automobile, such as a motorhome, motorcycle or scooter/moped, recreational vehicles or golf carts. The vehicle must be specifically listed for coverage to apply. Snowmobiles would not be eligible as a Miscellaneous Type Vehicle
Adhesion means
one party must accept a contract as-is Reason Insurance policies are contracts of adhesion. Their provisions are written by only one party to the * contract, and the other party is required to adhere to them. In essence, the other party is "stuck with it". The insurer writes the entire contract, and the insured can either accept or reject it. Unlike other types of contracts where a buyer and seller negotiate terms, an insurance contract is written with no input from the insured If there is any doubt regarding the wording of a contract of adhesion, the courts will interpret the meaning in favor of the insured.
What coverage is included in a Comercial General Liability policy?
personal injury Reason The GL policy provides three (3) distinct coverage parts, with important subparts that will be examined. Coverage A - Bodily Injury and Property Damage Coverage B - Personal and Advertising Injury Coverage C - Medical Payments
What are two types of risks?
pure and speculative
Answers on an application for insurance by an applicant are called
representations Reason A representation is a statement that the applicant believes to be true. Statements made on an application by the insured are representations!
The uncertainty of loss is the definition of
risk Reason Risk is the possibility that a loss will occur.
What is the definition of a named insured in a Personal Auto Policy?
the person(s) named on the declaration page Reason The policy uses the words you and your to refer to the named insured shown on the declaration page and the named insured's spouse, if residing in the same household as the named insulad.
A Builder's Risk policy provides all of the following coverages, EXCEPT
theft of a contractor's tools
Which is covered in an unendorsed DP-3 policy?
theft of plumbing Reason Theft is not named as a peril in any dwelling policy, but it is not excluded from special perils which is only found in the DP-3 for Coverage A and B. So, if the front door of a home gets stolen with a DP-3, it is covered. I
Attributes of Supplementary Payments in liability insurance include:
there is no additional cost Reason Since the Commercial General Liability (CG) policy is liability insurance, then Supplementary Payments are automatically included, are in addition to the policy limits, and there is no additional charge.
Under a commercial property policy, the insurer has the right to make inspections and surveys at any time. These surveys are for what purpose?
underwriting and rating Reason Inspections will allow underwriting to understand and better evaluate and rate the risk. An inspection may reveal what is on the application is invalid, perhaps because something changed in the insured's operations.
Rating services are designed to do which of the following?
verify the financial strength of the insurer
