ExamFX Chapter 3: Types of Property Policies Questions With Complete Solutions

Personal Lines - Includes Dwelling and Homeowners policies Commercial Lines - Business policies such as Businessowners, Commercial Property and Commercial Package policies Dwelling Property Policy - Insures properties solely used for residential purposes, can be used to insure the dwelling only, contents only, or both Basic, Broad and Special Form Coverage - The three separate coverage forms available under the dwelling program Endorsements - Exist to amend the coverage to tailor it to the specific needs of the policy applicant Liability Coverage - Coverage that is NOT included, but can be added to the policy. Commonly used to insure rental dwellings. Dwelling Property (DP) Form Structure - Agreement, Definitions, Deductible, Coverages, Perils Insured Against, General Exclusions and Conditions Perils Insured Against - Part of the DP form structure, varies by form and is a key differentiator in form selection Basic Form - DP 00 01 or DP1, Named Peril. Provides the most limited coverage, no minimum amount of insurance. Broad Form - DP 00 02 or DP2, Named Peril Special Form - DP 00 03 or DP3, open and named peril Perils Covered by DP1 - Fire or lightning and internal ex