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31 Cards in this Set
- Front
- Back
When will damage to the interior of the building be coveredunder the falling objects peril in the broad form of the DP? |
Only if the interior damage is a direct result of exterior damage from a falling object
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What are the 3 types of coverage available in dwellingpolicies? |
Basic, broad, and special |
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Assuming the insurer and the insured agree on the amountpayable for a loss covered under a dwelling policy, how soon after receivingthe proof of loss must the insurer pay the claim? |
60 days |
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An insured’s house becomes uninhabitable due to damage by afire. As a result, the insured has to rent an apartment until repairs are made.Which type of coverage under the dwelling policy will pay for the expense ofrenting the apartment? |
Coverage E- Additional Living Expenses |
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According to the liberalization condition, if an insurermakes a change to broaden coverage in newly issued dwelling policies, how willthat change affect policies already in force? |
The change will happen automatically |
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Replacement cost coverage is provided in both the broad andspecial form dwelling policies when the amount of insurance on the dwelling iswhat percentage? |
At least 80% of the replacement cost |
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In dwelling policies, what is the purpose of the automaticincrease in insurance endorsement that increases the amount of insurance by anannual percentage? |
To offset the effects of inflation |
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What are the 5 coverages of dwelling policies? |
Coverage A- Dwelling, Coverage B- Other structures, CoverageC- Personal property, Coverage D- Fair rental value, and Coverage E- Additionalliving expenses |
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What is the maximum number of units in residential dwellingsinsurable by Dwelling policy? |
Up to 4 units |
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In dwelling policies, the premium for the Dwelling underConstruction endorsement is based on what? |
The average amount of insurance during construction |
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If 3 volcanic eruptions happen within 48 hours, and eachcontributes to property damage, how many deductibles will apply in the dwellingpolicy? |
1 deductible ( all instances of volcanic eruptions that occurwithin a 72-hour period are considered 1 occurrence) |
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A basic dwelling policy automatically provides coverage againstwhat? |
Fire, lightning, and internal explosion |
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What are extended covered perils on a basic Dwelling policy? |
Windstorm or hail, explosion, smoke, aircraft and vehicles,riot or civil commotion, volcanic eruption, and vandalism and maliciousmischief |
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Which of the 3 DP forms provided the most limited coverage? |
DP-1 (Basic) |
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If an insured is in the process of moving to a new location,his personal property coverage under the dwelling policy will apply on a pro ratabasis at both locations for how long? |
30 days |
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A gas stove exploding in the dwelling is an example of whichnamed peril? |
Internal explosion |
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Under Coverage C- Personal Property in the dwelling policy,when will a guest’s property be covered? |
Only when the property is at the insured location |
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When a dwelling policy is cancelled for nonpayment ofpremium, the insurer must give notice within how many days of the cancellation? |
10 days |
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Which dwelling coverage form(s) will pay for the replacementcost of a dwelling? |
DP-2 (Broad) and DP-3 (Special) |
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What are some of the exclusions found in all 3 dwellingforms? |
Earth movement, water damage, power failure, neglect, war,nuclear hazard, intentional loss, freezing of plumbing, ordinance or law, andgovernment action |
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In DP-3 (Special) is an open-peril form. What does thatmean? |
All perils are insured unless specifically excluded |
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In dwelling policies, any volcanic activity will be consideredpart of one occurrence if it happens within how many hours? |
72 hours |
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Under what conditions can broad theft coverage be added to adwelling policy? |
If the insured is the owner-occupant of the dwelling |
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Which dwelling policy coverage will insure a garage notattached to the primary insured dwelling? |
Coverage B- Other Structures |
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Which dwelling policy coverage will provide protection forcontents damaged by fire in an insured dwelling? |
Coverage C- Personal Property |
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Under the Coverage E- Additional Living Expenses, if a civilauthority prohibits the insured from using the dwelling because of directdamage to a neighboring location forma peril covered in the insured’s policy,for what time period would the loss be covered? |
For up to 2 weeks |
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In DP, within how many years of a loss may an insured bringa lawsuit against the insurer? |
2 years |
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Which dwelling form is called the Broad form? |
DP-2 |
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Which dwelling form provides open peril coverage on thebuilding? |
DP-3 Special |
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What do dwelling policies insure? |
Dwelling only, contents only, or both dwelling and contents |