CIC personal lines Questions with Detailed Verified Answers

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CIC personal lines Questions with
Detailed Verified Answers

Question: 1-1 Eligibility requirements of ISO homeowners program


Ans: 1) Owner- occupied


2) life estate-property owned by an individua only through the end of his life


3) Contract of sale or land contract - rent to own type situation


4) Dwelling owned by a trust


5) Multi family dwelling- one unit must be occupied by the owner


6) Non-owner occupied - eligoble for the dwelling fire program only, no HOs


Question: 1-2 Two Endts to protect insurable interest of non-resident owner


Ans: 1) Additional Insured-Residence premises - mom and daughter buy
home, only daughter lives there


2) Additional Interests- used if above is not


Question: 1-2-1 HO coverages

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Ans: Section 1:


1) Coverage A- Dwelling


2) Coverage B- Other Structures 10%


3) Coverage c-Personal Property 50%


4) Coverage D- Loss of use 30%


Section 2:


5) Coverage e- personal liability $100k per occurrence


6) Coverage F- Med payments to others $1,000 per person


Question: 1-3 Importance of correct valuation


Ans: Total loss- may not have enough coverage to replace


Partial loss- may not have enough coverage to repair


Overinsured- may be paying more than necessary for no additional benefit


Question: 1-3-1 How to determine amount of coverage needed