Property & Casualty > Unit 7 > Flashcards

Unit 7 Flashcards

(49 cards)

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1
Q

perils special homeowners

A

open perils

- all direct causes of loss unless specifically excluded (dwelling/other structures)

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2
Q

perils basic homeowners

A

fire, lightning, explosion, wind, hail, smoke, aircraft, vehicles, volcanic eruption, v&mm, riot/ civil commotion, theft
exclusions apply

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3
Q

perils broad homeowners

A

all basic, including - falling objects, accidental discharge of water, weight of ice, sleet, snow, freezing of plumbing, artificially generated current, sudden tearing & breaking of heating & cooling system

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4
Q

additional coverages in HO 2,3,5

A

collapse - caused by covered peril, not earthquake
landlord furnishings
grave markers
ordinance of law

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5
Q

coverage D

A

loss of use - all homeowners policies

indirect losses due to loss of use of home caused by a peril, additional living expenses, rental income

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6
Q

coverage C

A 
personal property
not attached to the dwelling
anywhere in the world
guests property (if requested)
exclusions: pets, property of renters, motorized vehicles, special limits for theft and all losses
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7
Q

coverage B

A

other structures- separated by a clear space
not attached to dwelling
not used for business purposes

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8
Q

coverage A

A

dwelling
including property attached
materials on the premises used in construction
no cover for a renter

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9
Q

HO - 5

A

comprehensive form - owner occupant

“best you can buy”

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10
Q

HO - 6

A

condominium owners

wall, ceiling, floor, contents - not entire building

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11
Q

HO - 8

A

modified form

special circumstances

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12
Q

HO- 4

A

tenants or renters

4 rent- personal property

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13
Q

homeowners policy

A 
package policy
multiline
includes both property - section 1
and liability - section 2
prevents gaps in coverage
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14
Q

homeowners eligibility

A

owner occupied (other version for a renter)
no more than 4- family dwelling
primary purpose as a residence
dwellings under construction are eligible
mobile homes (require endorsement)

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15
Q

insureds

A
  • named insured including a resident spouse
  • resident relatives
  • anyone under the age of 21 & in the care of an insured (foster/ exchange student)
  • full-time student under the age of 24, relative and prior resident
  • representative of named insured in the event of death
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16
Q

cancellation

A

cancellation by the insurance company
- during the first 60 days for any reason, minimum 10 days’ notice
- other reasons after 60 days, minimum 30 days’ notice
material misrepresentation, substantial change in the risk
- nonpayment of premium- 10 days’ advanced notice (grace period)

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17
Q

nonrenewal by insurer

A

nonrenewal by insurance company

30 days’ advance notice

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18
Q

standard mortgagee clause

A
  • named on dec. page
  • can pay the premium
  • file a claim up to insurable interest
  • receive advance notice of cancellation
  • dishonesty of insured doesn’t prevent mortgagee from cancelling
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19
Q

HO -2

A

broad form - owner occupant

names what perils are covered

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20
Q

HO - 3

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A

special form
owner occupant
all risk policy

21
Q

personal property replacement cost endorsement

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A

insures personal property on a replacement cost basis instead of ACV
section 1

22
Q

scheduled personal property endorsement

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A
  • insured against open perils
  • replacement coverage
  • usually no deductible
    9 categories: cameras, coins, silverware, jewelry, furs, musical instruments, golf equipment, fine art, stamps
    section 1
23
Q

permitted incidental occupancies endorsement

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A
  • overrides the exclusions under the homeowners forms that apply to the insured’s business activities conducted on the residence premises
  • removes $2,500 limit on business personal property
    section 1
24
Q

earthquake endorsement

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A

land movements including volcanic eruption
one deductible for 72 hours (any aftershocks)
section 1

25
limited fungi, wet or dry rot, bacteria endorsement
- caused by a covered peril while the policy is in force - only used in the HO- 3 & HO-5 - fungi defined as any type or form of fungus including mold or mildew section 1
26
home day care endorsement
extends liability coverage to apply to day care operations premium based on number of children section 1
27
additional coverages "supplementary payments"
- automatically included - BAILED - defense costs, attorney fees, court cost - court ordered bonds - post judgement interest - reasonable expenses - damage to property of others - loss assessment section 2
28
watercraft coverage
- watercraft no owned & not rented to an insured regardless of length or horsepower - watercraft owned or not owned by insured - sailboats less than 26 feet - boats with inboard motors of 50 horsepower or less - boats with outbound motors of 25 horsepower or less
29
coverage E/ F exclusions
- injury or damage that is expected or intended by the insured and others - assumed through a contract - bodily injury or property damage arising out of business pursuits or rendering/ failure of professional services - bodily injury or property damage out of rental of any part of the premises - ownership, maintenance, use, loading, or unloading of aircraft, watercraft, vehicles
30
coverage F
medical payments - to others (not the insured) - no fault - on or off premises if due to insured's activities - covers domestic employees on or off premises - three years
31
coverage E
- personal liability - bodily injury/property damage - insured at fault - anywhere in the world
32
additional coverage in all homeowners
``` debris removal, reasonable repairs, trees, shrubs and other plants, fire department service charge, property removed, credit cards, forgery & counterfeit money * except for HO 8- broken class loss assessment ```
33
glass or safety glazing material
except for in HO - 8 broken glass is covered
34
loss assessment
- by a homeowners association - maximum of $1,000 - deductible applied once - damage to property caused by a covered peril
35
credit card forgery & counterfeit money
maximum of $500 | no deductible
36
property removed
- protects from a sure & certain loss | - protects from all covered perils for 30 days
37
fire department service charge
up to $500 | no deductible
38
tree, shrub and other plants
- maximum 5% of coverage A in addition to limit - maximum of $500 per tree - loss by fire, lightning, explosion, riot, aircraft, vehicles not owned or operated by a resident, theft, v & mm
39
reasonable repairs
pays cost for repairs necessary to protect from additional loss
40
debris removal
- expenses paid if caused by covered peril - removal of fallen trees covered if they damaged a covered structure or blocking roadway - maximum of $1,000 for tree debris removal per occurrence and $500 per tree
41
deductible
portion of a loss (% or $) that the insured must pay before the insurance company will pay its share
42
claims payment
actual cash value - personal property - awnings, carpeting, appliances, outdoor antennas, & equipment - structures that are not buildings replacement - dwelling & other structures - if insured for at least 80%
43
excluded perils in all homeowner policies
- enforcement of law or ordinance regulating construction, repair, or demo - earth movement, including earthquake - flooding/overflow from a sump pump - power interruption that takes place off the residence premises - war / nuclear hazard - insured's failure to save/preserve property - intentional loss by insured - destruction, confiscation or seizure of property
44
limited fungi, wet or dry rot, or bacteria endorsement
liability coverage for all damages arising directly or indirectly out of the actual, alleged, or threatened contact with mold section 2
45
home day care endorsement
premium based upon the number of children sexual molestation or corporal punishment are excluded section 2
46
permitted incident occupancies endorsement
liability for home-based business only covers business activity listed in the endorsement section 2
47
personal injury endorsement
libel, slander, false arrest, invasion of privacy or malicious prosecution section 2
48
business pursuits endorsement
business conducted away from the residence premises only while in the employment of someone else section 2
49
watercraft endorsement
- watercraft powered by outboard engines or motors exceeding 25 horsepower - watercraft powered by inboard or out-driven engines greater than 50 horsepower - sailboats 26 feet or more in length
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