North Carolina Property and Casualty
Exam Terms
Per Occurrence Correct Ans-A loss occurs at a specific time or place, claims made
individually on these
Aggregate limit Correct Ans-Maximum amount of coverage for a policy within the policy
period, can be used up
Dwelling policy Correct Ans-provides protection for individuals and families against loss to
their dwelling and personal property
DP-1 Basic Dwelling policy form Correct Ans-Dwelling, other structures, personal property,
fair rental value
Dwelling Coverage A Correct Ans-covers the dwelling, structures attached to the dwelling,
materials and supplies for use in the construction or repair of the dwelling or other structures on
the location, and building or outdoor equipment used to service the premises
Dwelling Coverage B Correct Ans-Insures buildings on the premises that are separated from
the dwelling by a clear space or connected only by a fence, utility line, or similar connection
Dwelling Coverage C Correct Ans-Personal property that is at described location and is usual
to the dwelling occupancy
,Dwelling Coverage D Correct Ans-fair rental value- covered property loss to the dwelling
makes building uninhabitable and therefore there is a loss of rental value so it is reimbursed
Dwellings perils automatically covered under basic form Correct Ans-Fire, Lightning, Internal
Explosion
DP-2 Broad form Correct Ans-Damage to covered property caused by burglars (does not
apply to theft of property)
Weight of ice, snow, or sleet
Falling objects
Freezing of plumbing, heating, air conditioning, or automatic fire protective sprinkler systems
and household appliances (insured must use reasonable care to maintain heat in the building or
shut off the water supply and drain all systems and appliances)
Sudden and accidental tearing apart, cracking, or burning of steam or hot water heating, air
conditioning, or automatic fire protective sprinkler systems and water heaters
Sudden and accidental damage from artificially generated electrical current (does not include
damage to a tube, transistor, or similar electrical component)
, Accidental discharge of water or steam at the described location from within a plumbing,
heating, air conditioning, or automatic fire protective sprinkler system or household appliance
DP-3 Special form Correct Ans-all property, losses, and perils not covered due to limitations
of the general exclusions (as described earlier in relation to the basic form) and the insuring
agreement;
any loss involving collapse, other than as provided in the other coverages section;
freezing of a plumbing, heating, air conditioning, or automatic fire protective sprinkler system or
a household appliance, or overflow due to freezing, unless reasonable care was taken to maintain
heat in the building or to shut off the water supply and drain the systems and appliances;
freezing, thawing, pressure, or weight of water or ice to fences, pavement, patios, swimming
pools, foundations, retaining walls, bulkheads, piers, wharves, or docks;
theft in or to a dwelling or structure under construction, or theft of any property that is not part of
a covered building or structure;
damage by wind, hail, ice, snow, or sleet to outdoor radio and television antennas and aerials,
including their lead-in wires, masts, or towers, and damage by these same perils to lawns, trees,
shrubs, or plants;
vandalism, malicious mischief, theft, and attempted theft if the dwelling has been vacant for
more than 60 consecutive days at the time of loss;
Exam Terms
Per Occurrence Correct Ans-A loss occurs at a specific time or place, claims made
individually on these
Aggregate limit Correct Ans-Maximum amount of coverage for a policy within the policy
period, can be used up
Dwelling policy Correct Ans-provides protection for individuals and families against loss to
their dwelling and personal property
DP-1 Basic Dwelling policy form Correct Ans-Dwelling, other structures, personal property,
fair rental value
Dwelling Coverage A Correct Ans-covers the dwelling, structures attached to the dwelling,
materials and supplies for use in the construction or repair of the dwelling or other structures on
the location, and building or outdoor equipment used to service the premises
Dwelling Coverage B Correct Ans-Insures buildings on the premises that are separated from
the dwelling by a clear space or connected only by a fence, utility line, or similar connection
Dwelling Coverage C Correct Ans-Personal property that is at described location and is usual
to the dwelling occupancy
,Dwelling Coverage D Correct Ans-fair rental value- covered property loss to the dwelling
makes building uninhabitable and therefore there is a loss of rental value so it is reimbursed
Dwellings perils automatically covered under basic form Correct Ans-Fire, Lightning, Internal
Explosion
DP-2 Broad form Correct Ans-Damage to covered property caused by burglars (does not
apply to theft of property)
Weight of ice, snow, or sleet
Falling objects
Freezing of plumbing, heating, air conditioning, or automatic fire protective sprinkler systems
and household appliances (insured must use reasonable care to maintain heat in the building or
shut off the water supply and drain all systems and appliances)
Sudden and accidental tearing apart, cracking, or burning of steam or hot water heating, air
conditioning, or automatic fire protective sprinkler systems and water heaters
Sudden and accidental damage from artificially generated electrical current (does not include
damage to a tube, transistor, or similar electrical component)
, Accidental discharge of water or steam at the described location from within a plumbing,
heating, air conditioning, or automatic fire protective sprinkler system or household appliance
DP-3 Special form Correct Ans-all property, losses, and perils not covered due to limitations
of the general exclusions (as described earlier in relation to the basic form) and the insuring
agreement;
any loss involving collapse, other than as provided in the other coverages section;
freezing of a plumbing, heating, air conditioning, or automatic fire protective sprinkler system or
a household appliance, or overflow due to freezing, unless reasonable care was taken to maintain
heat in the building or to shut off the water supply and drain the systems and appliances;
freezing, thawing, pressure, or weight of water or ice to fences, pavement, patios, swimming
pools, foundations, retaining walls, bulkheads, piers, wharves, or docks;
theft in or to a dwelling or structure under construction, or theft of any property that is not part of
a covered building or structure;
damage by wind, hail, ice, snow, or sleet to outdoor radio and television antennas and aerials,
including their lead-in wires, masts, or towers, and damage by these same perils to lawns, trees,
shrubs, or plants;
vandalism, malicious mischief, theft, and attempted theft if the dwelling has been vacant for
more than 60 consecutive days at the time of loss;
