CPCU 553, Chapter 7 Exam Questions and Answers | Verified & Updated | 100% Correct

CPCU 553, Chapter 7 Exam Questions and Answers | Verified & Updated | 100% Correct Personal property coverage for watercraft is - Answer ️️ -Provided on a limited basis for rowboats and canoes under both the homeowners policy and the DP-3 policy. For an urban area subject to riot and civil commotion, the operators of a group that jointly underwrite and share the risks and profits of property insurance in that area are known as - Answer ️️ -A syndicate. Alita owns a single-family home which she insures under a Dwelling Property 3—Special Form (DP-3) with a Coverage A limit of $150,000, a Coverage C limit of $10,000, no other limits or endorsements, and a $1,000 deductible. Alita had rented the partially-furnished property under a long-term lease, and her tenant added an attached screened-in porch at a cost of $8,000. Recently, the home suffered a loss by fire valued at $148,000. Contents belonging to Alita with an ACV of $15,000 were also destroyed. How much will Alita's insurer pay for the loss? - Answer ️️ -158,000. The insurer will pay: (148K loss - 1K ded) + 10K Cov C limit + 1K additional insurance (10% of Cov C for tenant improvements). Which one of the following make a property ineligible for both FAIR plans and windstorm and beachfront plans? - Answer ️️ -Both FAIR plans and windstorm and beachfront plans will not provide coverage to a property with unrepaired damage. Clarise owns a vacation home on a lake, and has insured it under an unendorsed DP-3 policy with a Coverage A limit of $120,000 and a Coverage C limit of $40,000. Clarise discovered that a rowboat she keeps tied to her dock on the lake has been stolen. She filed a claim under her dwelling policy for $700, the actual cash value of the rowboat. Would theft of the rowboat be a covered loss? - Answer ️️ -Theft is not a covered peril. Detached structures are covered under - Answer ️️ -Covered under Coverage B of the DP-3 policy. The Jordans own a small ranch, and keep several ponies on the property for their personal use. Mr. and Mrs. Jordan are concerned that their children's friends and visiting relatives could be injured when riding the family's ponies. What coverage would the unendorsed DP-3 policy provide for this loss exposure? - Answer ️️ -The unendorsed DP-3 provides no liability coverage Most beachfront and windstorm plans provide coverage for which one of the following exposures in addition to windstorm - Answer ️️ -Hail Unlike in the HO-3 policy, the DP-3 conditions - Answer ️️ -Are contained in a single section. Under the Mobilehome Endorsement (MH04 01), the Section I condition, Loss to a Pair or Set, is modified to - Answer ️️ -Allow matching of re