Adjuster Pro - Indiana - Chapter 3 Personal Lines Questions with 100% Correct Answers

Standard Fire Policy Correct Answer basic foundation of all homeowner's and commercial policies ACV Named peril policy that only covered fire and lightning First used in 1918 in NY Line of Coverage Correct Answer A particular risk or group of risks covered by an insurance policy Monoline Policy Correct Answer an insurance policy that covers only one risk or type of risk Personal lines Correct Answer for possessions intended for personal use Commercial lines Correct Answer for possessions intended for business or corporate use Homeowners Insurance Correct Answer bundles property and liability insurance into one 'package' policy Property coverage Correct Answer covers physical losses to the home and associated structures Liability coverage Correct Answer covers losses experienced by a third party, for which the policyholder is liable Buildings that qualify for HO: Correct Answer residential dwellings with up to 4 families (if at least one unit is occupied by the owner) Dwellings used exclusively for residential purposes Mobile homes Buildings under construction HO-2 (broad form) Correct Answer Named peril policy Cheap but provides more coverage than HO-8 Insures against all 17 broad form perils Covers the insured's house and personal property Named HO policies Correct Answer HO-2, HO-4, HO-6 and HO-8 Open HO policies Correct Answer HO-3 and HO-5 HO-3 (special form) Correct Answer the most common Broader coverage for the insured buildings than there is for personal property Open peril for dwelling and other structures and named peril for personal property HO-4 (contents broad form) Correct Answer Named peril Contents only for renters Insures against all broad form perils Only covers personal property, not other structures because renter has no insurable interest HO-5 Comprehensive Form Correct Answer Best coverage 'high end' Essentially the same as HO-3 except it is Open peril for all structures and personal property HO-6 Condominium Form Correct Answer Named For condo owners Unit owners form Covers the owner's belongings, not the overall building Broad form perils covered HO-8 Modified Coverage Form Correct Answer Limited coverage -Fire, lightning, windstorm, hail, explosion, riot, aircraft, vehicles, smoke, malicious mischief, theft, volcano Named-peril policy Covers property at ACV Broad Form Endorsement Correct Answer Added more coverage Vandalism, theft, malicious mischief, breakage of glass in a building, storm door, or window, falling objects, weight of ice snow or sleet, collapse, damage from a steam or hot water system, accidental discharge or overflow of water or steam, freezing of plumbing, heating, air conditioning systems or domestic appliances, sudden and accidental damage from artificially generated electrical current, and volcano Section 1 of HO Policies Correct Answer Coverage A - Dwelling Coverage B - Other Structures Coverage C - Personal Property Coverage D - Loss of Use Additional Property Coverages Exclusions Conditions Section 2 of HO Policies Correct Answer Coverage E - Personal Liability Coverage F - Medical Payments Additional Liability Coverages Residence Premises Correct Answer a) The dwelling listed on the dec page B) Other buildings, grounds where insured lives C) Building bought for use as a dwelling D) Any premises used in connection with the above E) Any premises the insured rents regularly but does not own F) Vacant land, except farm land G) Land the insured owns or rents in order to build a one-to-four-unit residence