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Personal Lines Flashcards

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1
Q

What is the ISO?

A

Insurance Services Office?

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2
Q

What are the two mandatory sections of a homeowners policy?

A
  1. Property - 1st party

2. Liability - 3rd party

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3
Q

What are the five coverage under Property section of homeowners policy?

A

A - Dwelling - insured chooses amount

B - Other structures (fences, detached garages) - 10%

C - Unscheduled Personal Property - 50%

D - Loss of Use (hotel) - 30%

Additional Coverages (FREE):

  • Debris removal
  • fire dept service charge
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4
Q

Coverage A - Homeowners policy

A

Dwelling - insured chooses amount

  • includes materials for construction
  • REPLACEMENT COST (RC)
  • SPECIFIC amount
  • insured chooses amount
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5
Q

Coverage B - Homeowners policy

A
  • Other structures on insured premises (fences, detached structures)
  • 10% of Cov A
  • Replacement Cost (RC)
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6
Q

Coverage C - Homeowners policy

A
  • Unscheduled Personal Property - owned by insured or resident relatives
  • 50% of Cov A
  • Actual Cash Value(ACV)
  • coverage territory is WORLDWIDE
  • automatic coverage for 30 days at a new residence
  • special limits on certain types of property (limits mean - buy coverage elsewhere)
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7
Q

Coverage D - Homeowners policy

A
  • Loss of Use (hotel)
  • indirect loss (consequential)
  • 30% of Cov A
  • NO DEDUCTIBLE
  • NOT TIED TO DIRECT DAMAGE
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8
Q

What are the additional (free) coverages under the property (section one) of homeowners policy?

A
  1. Debris removal
    - Tree debris - if the tree damages covered property - max $500
  2. Fire department service charge - max of $500 - no deductible for fire endangering covered property
  3. Trees, shrubs and plants - $500 max per
  4. Reasonable repairs to protect from further damage
  5. Emergency removal for 30 days - to protect from covered peril
  6. Loss assessment - only in a loss assessment community
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9
Q

What are the three coverage under liability section of homeowners policy?

A

E - Liability - insured chooses amount of coverage

F - Med Pay

Additional coverages (FREE):
- defense cost - lawyers
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10
Q

Coverage E - Homeowners policy

A

Liability - insured chooses amount of coverage

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11
Q

Coverage F - Homeowners policy

A

Med Pay

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12
Q

What are the additional (free) coverages under the liability (section two) of homeowners policy?

A
  • defense cost - lawyers
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13
Q

What is considered a Unit?

A

Bed, Bath, Kitchen

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14
Q

Six eligibility reqs for Homeowners Policy:

A
  1. dwelling used principally for residential - owner occupied - seasonal (vacation) homes can be covered
  2. max of four units
  3. max of two roomers in owner’s unit
  4. mobile home on permanent foundation (require endorsement)
  5. dwelling under construction (but no theft coverage)
  6. farm property NOT ELIGIBLE
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15
Q

What are the eight Homeowners Forms available?

A

HO-1 = Basic

HO-2 = Broad

HO-3 = Special

HO-4 = Tenants form (renters)

HO-5 = Comprehensive (deluxe)

HO-6 = Condo Unit Owners

HO-8 = Modified Coverage (no coinsurance)

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16
Q

What is HO 7 form?

A

doesn’t exist in test land

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17
Q

What is HO 8 form?

A

doesn’t exist in test land

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18
Q

HO-1

A

Basic form - BASIC NAMED PERILS

Cov A - BASIC PERIL
Cov B - BASIC PERIL
Cov C - BASIC PERIL

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19
Q

HO-2

A

Broad form - NAMED PERILS

Cov A - BROAD PERIL
Cov B - BROAD PERIL
Cov C - BROAD PERIL

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20
Q

HO-3

A

Special form - OPEN PERILS (named exclusions)

Cov A - OPEN PERIL
Cov B - OPEN PERIL
Cov C - BROAD PERIL (NAMED PERILS)

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21
Q

HO-4

A

Tenants (renters - BROAD PERILS

Cov A - N/A
Cov B - N/A
Cov C - BROAD PERILS

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22
Q

HO-5

A

Comprehensive (deluxe) - OPEN PERILS

Cov A - OPEN PERILS
Cov B - OPEN PERILS
Cov C - OPEN PERILS

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23
Q

HO-6

A

Condo Unit Owners - BROAD PERILS

Cov A - BROAD PERILS
Cov B - N/A
Cov C - BROAD PERILS

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24
Q

HO-8

A

Modified Coverage - BASIC PERILS - no coinsurance

Cov A - BASIC PERILS
Cov B - BASIC PERILS
Cov C - BASIC PERILS

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25
Difference between HO-3 (special) and HO-5 (comp)
Coverage C (unschedule personal property) ``` HO-3 = broad perils HO-5 = open perils ```
26
Which Homeowner Forms require coinsurance?
ALL BUT HO-8 (Modified Coverage Form)
27
Which four perils does HO-1 and HO-8 NOT cover?
1. Falling objects (tree) 2. Weight of Ice 3. Accidental Water (appliance leak) 4. Freezing
28
Does HO insurance cover vandalism?
Yes, all forms
29
Does HO insurance cover theft?
Yes, all forms
30
What is Volcanic Eruption damage considered in OK?
Ash + Lava
31
Valuation for Cov C (unschedule personal property) on all HO Forms is _____, except HO-__.
Actual Cash Value (ACV) HO-5 - Replacement Cost (RC)
32
Valuation for Cov A (dwelling) and Cov B (other structures) on all HO Forms is _____, except HO-__.
Replacement Cost (RC HO-8 - Actual Cash Value (ACV)
33
In a Homeowners Policy, insurer must give ___ days notice before cancellation due to non-payment?
10 day
34
Are vehicles licensed for road use covered under a homeowners policy?
NO - but lawnmowers, hoveround are
35
What are four property endorsements available on Homeowners policy?
1. Earthquake - ONE OCCURRENCE is considered a period of 72 hours 2. Schedule Personal Property 3. Replacement Cost Value for Personal Property 4. Mobile Home Endorsement
36
What is a Mobile Home Insurance Policy?
- policy similar to ISO Homeowners Policy - Property and Liability - Optional coverage: collision or upset(overturn)
37
Can flood insurance be added as an endorsement to homeowners policy?
NO
38
Liability Coverage (Section 2) is the _____ on all HO forms.
SAME
39
What is the coverage territory for liability coverage on homeowners policy?
worldwide
40
Examples of personal liability occurrence on homeowners policy:
- dog bite - slip and fall - hunting accident
41
Who is insured for liability (Whose negligent acts are covered)?
- named insured - resident relatives (blood, marriage, adoption) - other residents under 21 (foreign exchange student) NO ROOMMATES!
42
Med Pay on homeowners policy (liability) is payable up to ___ years from date of injury.
three
43
What is another name for Additional Coverages?
Supplement payments
44
Section 2 (Liability) has three additional (free) coverages. name them:
1. Claim Expense - defense cost 2. First Aid 3. Damage to Property of Others - $1,000 per occurrence (MAIN PURPOSE IS TO AVOID LAWSUITS)
45
What are the seven exclusions under Section II of homeowners policy?
1. intentional acts 2. war 3. Professional liability 4. business activities 5. use of motor vehicle (with the exceptions of lawnmowers/hoveround) 6. use of watercraft - (watercraft with OUTBOARD motor of 25hp or less, sailboats less than 26ft 7 use of aircraft
46
What types of watercraft are covered under the homeowners policy?
OUTBOARD motor of 25hp or less, sailboats less than 26ft
47
What endorsement can be added to a homeowners policy to ensure that defense costs are paid by insurer?
Personal Injury - libel, slander, defamation
48
Another name for a Landlord Policy?
Dwelling Property Policy
49
What's the max number of units in a Dwelling Property Policy?
4
50
Max number of roomers or boarders in a single unit under the Dwelling Property Policy:
5
51
Three major differences between Dwelling Property Policy and Homeowners Policy:
1. do not automatically cover theft 2. do not automatically cover personal property 3. are not package policies and provide ONLY PROPERTY COVERAGE
52
DP-1
Basic Form - ONLY THREE NAMED PERILS - 1. Fire 2. Lightning 3. Internal Explosion Valuation - Actual Cash Value (ACV) NO coinsurance required
53
DP-2
Broad Form - Broad Perils Cov A - RC Cov B - RC Cov C - ACV *coinsurance required*
54
DP-3
Special Form Cov A - Open Perils - RC Cov B - Open Perils - NAMED CONTENTS - RC Cov C - Broad Perils - ACV
55
What are the four perils not covered under DP-1?
1. Falling Objects 2. Weight of Ice 3. Accidental Water 4. Freezing
56
Is theft covered under DP-3?
NO - theft is not automatcially covered under any DP policy - BUT can be added
57
Is coinsurance required on DP-3?
Yes
58
What is the coinsurance requirement under DP-2 and DP-3?
80%
59
Are accounts, drawings, manuscripts, paper records or money covered under the Dwelling Property Policy?
NO
60
What are two optional endorsements on a Dwelling Property Policy?
1. Theft 2. Comp Personal Property - same third party liability coverages as Section II of homeowners policy providing Coverage E - Liability and Coverage F - Medical Payments
61
What is the NFIP?
National Flood Insurance Program
62
Flood insurance can be acquired through what two sources?
1. National Flood Insurance Program | 2. "Write You Own" policy through local producer
63
Four factors that define a flood:
1. overflow of inland or tidal waters 2. rapid accumulation of surface waters (FLASH FLOOD) 3. Mud slide caused by water 4. Collapse of destabilization of shore line
64
Is a mud slide covered by flood insurance?
Yes
65
Coverage is purchased ________ on ________ and ______ ________ for flood insurance
SEPARATELY BUILDINGS PERSONAL PROPERTY
66
What is the standard deductible in the event of damage to buildings or personal property (flood)?
$500
67
Coverage covers removal of ______ in flood insurance.
MUD
68
What is the waiting period for flood insurance to become effective?
30 days
69
Producers do not have ______ _________ with regards to flood insurance.
binding authority
70
Is there a coinsurance requirement in flood insurance?
NO
71
What is the valuation method in flood insurance?
Actual Cash Value (ACV)
72
What are six exclusions to flood insurance coverage:
1. Indirect loss (loss of use) 2. Sewer back-ups 3. losses in control of the insured 4. damage to underground structures - OR structures built on or above water! 5. personal property in basement 6. money, securities, manuscripts, animals, plants
73
What are the six classes of risk in Nationwide Marine Coverage:
OCEAN - 1. Imports OCEAN - 2. Exports INLAND MARINE - 3. Schedule personal property INLAND MARINE - 4. Bridges, tunnels, other instruments of transportation INLAND MARINE - 5. Domestic shipments INLAND MARINE - 6. Commercial property floater risks
74
What is covered under an inland marine policy?
INLAND MARINE - 3. Schedule personal property INLAND MARINE - 4. Bridges, tunnels, other instruments of transportation INLAND MARINE - 5. Domestic shipments INLAND MARINE - 6. Commercial property floater risks
75
A schedule personal property floater can be written as a ________ _______ or endorsed to a _________ _________.
Standalone Policy Homeowners Policy
76
Definition of Floater:
indicates insurance is provided on specifically described property that is mobile and INSURED WHEREVER LOCATED IN A COVERED TERRITORY.
77
What four things CANNOT be covered as floaters?
1. Boats 2. ATVs 3. Motorcycles 4. Buildings
78
What are some examples of classes of eligible property?
1. Jewelry 2. Furs 3. Musical instruments 4. Golfing equp 5. Cameras 6. Fine arts 7. Silverware 8 Stamps & coins 9 Firearms 10 WEDDING PRESENTS
79
What are four features of an Inland marine personal property floater policy?
1. Broader Coverage - extensive OPEN PERIL coverage - limited exclusions 2. Worldwide Coverage - fine arts restricted to USA and territories 3. Valuation Basis - Actual Cash Value (ACV - except fine arts - agreed value 4. LOW DEDUCTIBLE
80
What is inherent vice?
tendency for an item to self-destruct (opal jewelry)
81
What's another name for a Personal Umbrella Policy?
Catastrophic liability
82
Umbrella limits of liability:
minimum of 1 million - in EXCESS of underlying limits
83
What are the three underlying policies required:
1. Personal Liability 2. Personal Auto Liability 3. Watercraft Liability
84
What is Self-Insured Retention (SIR)?
losses covered by umbrella but not the underlying policies are subject to SIR - acts as a DEDUCTIBLE - paid by insured!
85
What is the coverage territory for a Personal Umbrella Policy?
Worldwide
86
What four coverages does a Boatowners policy include?
1. Protection and Indemnity (P&I) - pays for bodily injury and prop damage to third party - can be written as combined single limit or split liability 2. Med Pay 3. Hull Coverage - hull damage is OPEN PERIL - hull, motors 4. Boat Trailer
87
Exclusions to a Boatowners policy:
1. watercraft outside of navigational limits 2. watercraft hired, rented, or used as transport (for hire) 3. Intentional 4. War, nuclear, inherent vice, etc
88
What does "laid up" mean in regards to a boatowners policy?
in a safe berth by a bailee - premium credit is given while in storage
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