SC Personal Lines Exam with solved Answers

6 loss valuation methods - ANSWER-actual cash value, replacement value, functional replacement value, market value, stated amount, agreed value waiver & estoppel - ANSWER-a person has given up a known or legal right 4 components of a legal contract - ANSWER-agreement, consideration, competent parties, legal purpose 6 classes of insurers - ANSWER-authorized(admitted), unauthorized(nonadmitted), domestic, foreign, alien, independent rating services 5 marketing distribution systems - ANSWER-independent agency, exclusive/captive agency, managerial agency, general agency, direct response DP 1 extended coverage perils endorsement - ANSWER-wind, civil commotion, smoke, hail, aircraft, vehicles, volcanic eruption, explosion, riot --- can purchase vandalism & malicious mischief after DP 2 broad form perils - ANSWER-freezing, electrical, breakage, burglary (not theft), falling objects, ice, leakage DP 3 special form perils - ANSWER-named perils are not covered DP 1 basic form perils - ANSWER-fire, lightning, internal explosion HO policies on an open peril basis - ANSWER-HO 3 dwelling & HO 5 3rd number in split limit liability - ANSWER-property damage first number in split limit liability - ANSWER-bodily injury per person