PROPERTY AND CASUALTY ENDORSEMENTS EXAM PREP QUESTIONS AND ANSWERS 2024

Automatic Increase in Insurance (Dwelling) Provide annual increase in Coverage A & B in 4%, 6%, or 8% Dwelling Under Construction Endorsement (Dwelling) Used when dwelling under construction - policy limit based on value of partially completed home, increases as home progresses Mobile Home (Dwelling) Allows mobile home to be insured, must be on permanent foundation Broad Theft Coverage (Dwelling) Broad for owner occupied (limited for not owner occupied) Exclusions: Animals, credit cards, mail, aircraft, property of tenants, business property, samples, motor vehicles (except motorized scooters/wheelchairs for disabilities) Debris Removal - DP/HO/Com/BOP Pays for removal of debris due to covered peril Com/BOP - Up to 25% of loss Property Removed - DP/HO/Com/BOP Covers property against direct loss while off-premise due to danger from covered peril 30 days (expect 5 days for DP-1) Fire Department Charge - DP/HO/Com/BOP No deductible Covers: $500 DP/HO, $1,000 commercial, $2,500 BOP Trees, Shrubs, and Other Plants (DP2/3, HO) Limit: 5% of Coverage A $500 maximum per plant Credit Card Theft, Counterfeit $, Forgery - HO $500 with no deductible Loss Assessment - HO $1,000 for loss assessment charged by association of property owners due to loss of property owned by association (i.e. condo association) Pollutant Cleanup - Com/BOP Up to $10,000 per policy period Scheduled Personal Property Endorsement - HO Homeowner's policy endorsement that provides open peril, scheduled coverage for 9 optional classes of property Personal Property Replacement Cost - HO Replacement cost coverage for personal property --- rather than ACV Permitted Incidental Occupancies - HO Overrides the exclusions that insureds business activities cannot be conducted on the residence premises Earthquake - HO Provides coverage for damage from earth movement, including volcanoes Covers aftershocks for 72 hours Home Day Care Endorsement - HO Extends liability to daycare operation, premium charged by # of children Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Endorsement - HO/BOP Covers property damage from fungi and rot, but only if unknown (must try to protect property) BOP - $15,000 limit Glass or Safety Glazing Material - DP 2/3, HO Covers breakage of glass (windows, storm doors) and any damage to property Transportation Expenses - Personal Auto $20 per day, max $600 Covers fee for rental car, cab, public transit if car physically damaged 24 hour waiting, 48 hour if theft Towing and Labor Costs - Personal Auto Reimburses for cost of towing or labor (at site of disablement) Joint Ownership Coverage - Personal Auto Two or more unrelated people in same household can be on auto policy Miscellaneous-type vehicle endorsement - Personal Auto Extends overage to motorcycle, moped, and recreational vehicles Extended nonowned coverage - Vehicles furnished or available for regular use endorsement Expands policy coverage when driving other cars and eliminates many exclusions i.e. used for company car Flood Insurance - Emergency vs Regular National Flood Insurance Program Emergency - small limits, Regular - expanded limits Covers water, mudslides, collapse due to erosion due to flood - only external/natural sources of water Personal Articles Form - Inland Marine Coverage for 9 optional classes of personal property Personal Effects Floater - Inland Marine For travelers - aka travelers baggage Boat Owners Policy Less than 26 feet and $25,000 - Does not apply if for hire or racing Bigger = yacht Umbrella Insurance Policy (name for deductible?) Provide additional liability coverage above