CIC - PERSONAL LINES - SECTION 1
EXAM QUESTIONS WITH CORRECT
ANSWERS
Debris removal - Answer--pay additional 5% of policy limits
-up to $500 per tree/$1000 total
-fallen trees from wind/hail/weight/
-your neighbors fallen trees (provided they damage a covered structure or block a
driveway)
Identify and explain the property perils covered by the ISO HO-3 Homeowners policy -
Answer-***Coverage A and B.
-we insure against direct physical loss to property described in coverages A and B.
Open perils on both, therefore the burden of proof of whether coverage exists or not is
on the insurance company.
1. fire/lighting
2. windstorm/hail
3. Explosion
4. Riot or Civil Commotion
5. Aircraft
6. Vehicles
7. Smoke
8. Vandalism or Malicious Mischief
9. theft
10. Falling objects
11. Weight of Ice, Snow or Sleet
12. Accidental discharge or overflow of water or steam
13. Sudden And Accidental Tearing Apart, Cracking, Burning Or Bulging
This peril means sudden and accidental tearing apart, cracking, burning or bulging of a
steam or hot water heating system, an air conditioning or automatic fire protective
sprinkler
system, or an appliance for heating water.
We do not cover loss caused by or resulting from freezing under this peril.
14. Freezing
15. Sudden And Accidental Damage From Artificially Generated Electrical Current
16. Volcanic Eruption
identify property exclusions and limitations in an HO - Answer-1. ordinance or law
2. earth movement
3. Water
4. Power failure (off res premises)
5. neglect in preserving property after a loss
, 6. war
7. Nuclear hazard
8. intentional loss
9. governmental action
List and describe important Conditions in Section I - Property Coverages **13 skipped it
- Answer-PINES
Protect the property from further loss
Inventory the damaged property
Notify the carrier or agent
Exhibit the property to an adjuster
Submit a sworn proof of loss
explain the loss settlement conditions and endorsement available to modify valuations -
Answer-Actual Cash Value: Replacement cost of the property lost, damaged or
destroyed with a deduction for depreciation or obsolescence.
Replacement Cost: The cost to repair or replace the item lost, damaged or destroyed
with property of like kind and quality without consideration of depreciation or
obsolescence.
**ammount of insurance/80% RC X loss +recovery
explain liability coverages found in the HO - Answer-coverage E- personal liability...pay
up to the limit for damages the insured is legally liable for...provide a defense at their
expense. the duty to defend ends when the limt of coverage has been exhausted by
payment of a judgement or settlement.
Coverage F-Medical payments to others
pays reasonable and necessary expenses incuurred or medically ascertained within 3
years of an accident causing bodily injury...coverage does not apply to you or regulare
residents of you household dut does cover resident employees. (scenario on the golf
course..."caused by activity of the insured (not business related) off insured premises"
Identify the liability exclusions and limitations - Answer--motor vehicle liability
-watercraft liability
-aircraft liability
-hovercraft liability
-Business
common endrosements to modify business exclusion - Answer-Permitted incidental
occupancies- provides liabilty on the res premises only for the business
described.....Business pursuits- provides liablity coverage for the business exposure on
and off premises for certain types of business...insured cannot own
business...Structures rented to others-provides property and liablitiy coverage for
structures rented to others for use as a private residence
EXAM QUESTIONS WITH CORRECT
ANSWERS
Debris removal - Answer--pay additional 5% of policy limits
-up to $500 per tree/$1000 total
-fallen trees from wind/hail/weight/
-your neighbors fallen trees (provided they damage a covered structure or block a
driveway)
Identify and explain the property perils covered by the ISO HO-3 Homeowners policy -
Answer-***Coverage A and B.
-we insure against direct physical loss to property described in coverages A and B.
Open perils on both, therefore the burden of proof of whether coverage exists or not is
on the insurance company.
1. fire/lighting
2. windstorm/hail
3. Explosion
4. Riot or Civil Commotion
5. Aircraft
6. Vehicles
7. Smoke
8. Vandalism or Malicious Mischief
9. theft
10. Falling objects
11. Weight of Ice, Snow or Sleet
12. Accidental discharge or overflow of water or steam
13. Sudden And Accidental Tearing Apart, Cracking, Burning Or Bulging
This peril means sudden and accidental tearing apart, cracking, burning or bulging of a
steam or hot water heating system, an air conditioning or automatic fire protective
sprinkler
system, or an appliance for heating water.
We do not cover loss caused by or resulting from freezing under this peril.
14. Freezing
15. Sudden And Accidental Damage From Artificially Generated Electrical Current
16. Volcanic Eruption
identify property exclusions and limitations in an HO - Answer-1. ordinance or law
2. earth movement
3. Water
4. Power failure (off res premises)
5. neglect in preserving property after a loss
, 6. war
7. Nuclear hazard
8. intentional loss
9. governmental action
List and describe important Conditions in Section I - Property Coverages **13 skipped it
- Answer-PINES
Protect the property from further loss
Inventory the damaged property
Notify the carrier or agent
Exhibit the property to an adjuster
Submit a sworn proof of loss
explain the loss settlement conditions and endorsement available to modify valuations -
Answer-Actual Cash Value: Replacement cost of the property lost, damaged or
destroyed with a deduction for depreciation or obsolescence.
Replacement Cost: The cost to repair or replace the item lost, damaged or destroyed
with property of like kind and quality without consideration of depreciation or
obsolescence.
**ammount of insurance/80% RC X loss +recovery
explain liability coverages found in the HO - Answer-coverage E- personal liability...pay
up to the limit for damages the insured is legally liable for...provide a defense at their
expense. the duty to defend ends when the limt of coverage has been exhausted by
payment of a judgement or settlement.
Coverage F-Medical payments to others
pays reasonable and necessary expenses incuurred or medically ascertained within 3
years of an accident causing bodily injury...coverage does not apply to you or regulare
residents of you household dut does cover resident employees. (scenario on the golf
course..."caused by activity of the insured (not business related) off insured premises"
Identify the liability exclusions and limitations - Answer--motor vehicle liability
-watercraft liability
-aircraft liability
-hovercraft liability
-Business
common endrosements to modify business exclusion - Answer-Permitted incidental
occupancies- provides liabilty on the res premises only for the business
described.....Business pursuits- provides liablity coverage for the business exposure on
and off premises for certain types of business...insured cannot own
business...Structures rented to others-provides property and liablitiy coverage for
structures rented to others for use as a private residence
