AD banker property & casualty chapter 5 with correct answers

Homeowner's policy eligibility - ANSWERSnamed insured to be owner/occupant (except ho4 & ho6) dwelling must be principal residence and incidental business is permitted. ho4 and ho6 are written for personal property and personal liability of the named insured who does not own the building. ho4 is designed for tenants of a residential unit. ho6 is designed for owners of condo/coops. eligible residential dwellings contain 1-4 residents and no more than 2 roomers/boarders. dwellings under construction and that will be primary residence are eligible for coverage. Broad form HO-2 - ANSWERSNames perils for A and B. Fire, lignting, windstorm, hail, explosion, riot/civil commotion, aircraft, vehicles, smoke, vandalism/mm, theft, falling objects, weight of ice, snow or sleet, accidental discharge of water or steam, sudden and accidental tearing apart, cracking, burning or bulging, freezing, sudden and accidental damage from artificially generated electrical current, volcanic eruption- losses are valued replacement value. Does not cover loss to a fence, driveway, or walk caused by a veh owned/operated by the insured. HO-3 Special form - ANSWERSOpen perils for A & B. Losses to A&B are replacement value. Exclusions: collapse, freezing of appliances unless reasonable care was taken to maintain heat or shut off water supply, freezing, thawing, pressure or weight of water or ice on patios,fences, swimming pools, theft, vandalism if vacant, mold, fungus, dry rot, wear and tear, smoke from smudging/industrial, pollution, settling, cracking, birds, vermin, animals owned or kept by insured. Personal property is named perils from ho-2. ACV Includes losses to a fence, driveway, etc... owned by insured. burden of proof for losses falls to the insurer for dwelling/other structures, but insured for personal property. Contents broad form HO-4 - ANSWERSrenters- no coverage for dwelling. See named perils from ho2 and 3. Comprehensive HO5 - ANSWERSbroadest coverage- best a, b and c are open perils replacement cost for a and B and personal property is acv. unit owner's ho6 - ANSWERSnamed peril coverage for owners of a condo or coop for a and c. B does not appear. if they have other structures, we will include in A. insures personal property any where in the world. Modified form ho-8 - ANSWERSold homes and modified insures older homes when replacement and market value are disproportionate. old 3 story Victorian. if the dwelling were destroyed in a loss, the insured would not want to restore or replace it exactly as it was before. limit of insurance should reflect functional replacement value. Insured - ANSWERSnamed insured and his spouse if spouse is in the household. other resident relatives who are relatives, or under 21 and in the care of the insured. full time students living away at college if they are under 24 and related to the insured. were a a resident of the named insureds household before going to college or are 21 and in the care of the named insured. Section II liability- any person or org legally respn. for covered animals or watercraft owned by the insured unless business. Motor vehicle in respect to liability- persons using a covered vehicle on an insured location with the insured's consent and persons while engaged in employment of the named insured or resident relative Insured location - ANSWERSresidence premises part of the premises. Any premises used by the named insured such as a boat slip any premises not owned but the insured is temporarily residing. Vacant land other than farm land owned or rented to an insured. land owned by or rented by an insured on which a dwelling is being built. cemetery plots or burial vaults any part of a premises occasionally rented to an insured for other than business purposes such as a banquet hall Residence employee - ANSWERSemployee of an insured whose duties relate to the maintenance or use of the premises. person who performs similar duties elsewhere that are not related to any business of the insured. hired to paint a house. Residence premises - ANSWERSfamily dwelling where the named insured resides 2, 3, or 4 family dwelling in which the named insured resides in one of the family units part of any other building where the insured resides. includes other structures, barn, detached garage. business means - ANSWERStrade, profession or occupation engaged in on a full time, part time or occasional basis except- volunteer activities, home day care with no compensation, rendering home day care to a relative, any other activity not described for which No more than 2000 in a year is received. Deductible - ANSWERSapplies to all losses unless otherwise noted. policy will pay that part of the total of all loss payable under section I that exceeds the deductible. Coverage A dwelling - ANSWERScan be no less than 80% of the replacement value. if it's not carried, acv will apply. Coverage B other structures - ANSWERSNo coverage for land, other structures rented to someone not a tenant unless a private garage, other structures where business is conducted, other structures used to store business property owned by someone other than the ni or tenant of the dwelling. Coverage C personal property - ANSWERSproperty owned or used by an insured while it's anywhere in the world. at the named insured's request- property owned by others while it's on the residence premises occupied by the insured or property owned by a guest or residence employee while located in any residence occupied by an insured. Property at another location is limited... such as a dorm.... limited to 10% of C or $1000 whichever is greater. Doesn't reduce A- it's 50% of a. Special limits of personal property - ANSWERSMoney, bank notes, coins, etc... 200 Securities, deeds, evidences of debt- 1500 watercraft- 1500 trailers 1500 jewelry, watches, furs- 1500 firearms- 2500 silverware 2500 business property 2500 property away from residence for business- 500 electronic apparatus in motor vehicles- 1500 electronic apparatus for business while away - 1500 property not covered under C - ANSWERSproperty insured elsewhere animals, birds, fish motor vehicles - exception- vehicles not required to be registered for use on public roads used to service an insureds residence or assist the handicapped aircraft except model or hobby aircraft if not used to carry people/cargo hovercraft property of roomers property in an apartment property rented or held for rental business data, credit cards, elect funds cards water or steam Loss of use- Coverage D - ANSWERSAdditional living expense fair rental value civil authority prohibits use- no more than 2 weeks loss and expenses due to cancellation of a lease or agreement are not covered. Limits vary- 30% A for ho2, 3 and 5 30% of c for ho4 50% of C for ho6 10% of a for ho8 Debris removal - ANSWERSpayment is included in the limit of insurance for covered property that is damaged. Will provide an additional 5% if the property limit is exhausted. Limit of 1000 applies for reasonable expenses to remove from the residence premises debris of the insured's trees felled by windstorm, hail Reasonable repairs - ANSWERSThis coverage pays the reasonable costs incurred by the named insured to take necessary measures to protect covered property damaged by a covered peril against further damage. Doesn't increase the limit of insurance that applies to covered property. Trees, shrubs and plants - ANSWERScoverage is provided for the following perils- fire/lightning, explosion, riot or civil commotion, aircraft, vehicles not owned/operated by a resident of the premises, vandalism and mm and theft. Coverage is not provided for any other peril including wind/hail. Limit is 5% of A. Most paid for any one item is $500. This is additional insurance. Fire department surcharge - ANSWERSpays up to $500 for the named insured's contractual liability to pay fire department charges incurred by a fire department. Must be from a department out of jurisdiction. Additional insurance and deductible doesn't apply Property removed - ANSWERSProvided for loss to covered property while being removed from a premises endangered by a peril. coverage applies for 30 days. Credit cards, etc.. - ANSWERS$500 for unauth use. Some exclusions- use by a resident, person entrusted with card, insured's failure to comply, business use or insured's dishonesty. Also includes defense. Loss assessment - ANSWERSup to 1000 for loss assessment. additional insurance property owned collectively. collapse - ANSWERSmust be caused by a named peril, hidden decay, hidden insect or vermin, weight of contents, equipment, animals, people, weight of rain, or use of defective materials or construction methods. Does not cover awnings, fence, patios, swimming pools, underground pipes unless damage is the direct result of collapse. Does not increase the limit of insurance. glass or safety glazing material - ANSWERSbreakage of glass or safety glazing material that is part of a covered building, storm door or storm window. No coverage if vacant, except earthquake Doesn't increase limit of insurance. Landlord furnishing - ANSWERS2500 for appliances, carpeting, household furnishings and located in apartments. provided for 15 perils, with the exception of theft. doesn't increase limit of insurance. ordinance or law - ANSWERSmay use up to 10% of A for increased costs. Additional insurance. Grave markers - ANSWERSup to $5000 for grave markers. Does not increase limits of insurance. Homeowner's exclusions - ANSWERSOrdinance or law, earth movement, water damage, power failure, neglect, war, nuclear hazard, intentional loss, governmental action Mobile home insurance - ANSWERSInsurance for mobile homes can only be insured on a homeowner's policy by adding a mobile home end. Other structures - ANSWERSif coverage b isn't enough, customer can endorsement on addtional coverage water back up - ANSWERS$250 deductible. Coverage doesn't apply if due to negligence by the insured. Personal property replacement cost loss - ANSWERSNot included- antiques, fine arts, paintings, memorabilia, etc... Scheduled personal property - ANSWERSopen perils- very few exclusions- wear and tear, insects/vermin, war, nuclear hazard. Notify within 30 days (90 for fine arts) if new property is acquired. Insured worldwide. Deductible doesn't apply Earthquake endorsement - ANSWERSsingle earthquake is define as 1 or more earthquake shocks in 72 hours. Deductible that is a percentage of A or C whichever is greater. Deductible will not be less than $500. Limited fungi, wet or dry rot or bacteria coverage - ANSWERSproperty limit of 10,000. cost of testing the air, removal, tearing out and replacing. Permitted incidental occupancies endorsement - ANSWERSfor business, covers a structure on the premises. also allows $2500 of C personal property to apply. Identity theft expense - ANSWERSwill pay up to 15,000 for expenses resulting from identity fraud. $500 deductible. must notify within 60 days. Personal liability - ANSWERSpayments for defense are made in addition to the limit of liability appearing on the declarations. Coverage F medical payments - ANSWERSmedical expenses within 3 years. medical, surgical, x-rays doesn't apply to insured or regular residents, except residence employees Claim expenses - ANSWERSloss of earnings up to $250 a day for assistance First aid expenses- Damage to property of others- pays up to 1000 at replacement cost, for property damage caused by an insured. payment is made regardless of negligence. Coverage does not apply if covered under section I, caused intentionally by someone 13 years or older, to any property owned by an insured, to property owned by or rented or controlled cy an insured that is not the insured's location. Loss assessment- up to $1000 of coverage for the insured's share of loss assessments charged by a corporation or association during the policy period. Motor vehicle liability - ANSWERSNo coverage exists if the vehicle was registered for public roads or wasn't registered but was required to be. No coverage for vehicles being raced, rented to others, used to carry people or cargo for a fee or used for any business purpose. exceptions to exlclusions- vehicle in storage, vehicle used to service residence, vehicle designed to assist handicapped, motorized golf cart, vehicle designed for recreational use off public roads if they are not owned by an insured or owned by an insured on an insured location Aircraft liability - ANSWERSNo coverage. Hovercraft - ANSWERSNo coverage Exclusions for E and F - ANSWERSexpected, intended injury, injury out of a business, professional services, property rented if not an insured location, war, warlike act, communicable disease by an insured, injury out of sexual molestation, corporal punishment or physical/mental abuse, controlled substances. exception- prescribed drugs watercraft when inboard motor owned by insured except when in storage. inboard motor with more than 50 horsepower, rented by insured, outboard motor with more than 25 rented, sailing vessel more than 26 feet in length owned or rented by insured.