1
PROPERTY
PROPERTY AND CASUALTY INSURANCE EXA
G G G G
M QUESTIONS AND ANSWERS UPDATED (20
G G G G G
24/2025) (VERIFIED ANSWERS) G G
Accordinggtogthegcommongpolicygconditionsgforgagcommercialgpackagegpoli
cy,gifgtheginsuredgdies,gthegpolicygrightsgandgdutiesg-
ANSg✓Automaticallygtransfergtogaglegalgrepresentative
g
Valuablegpapersgandgrecordsgformgprovidesgcoveragegforgthegreconstructio
ngofgallgofgthegfollowinggtypesgofgrecordsgEXCEPTg-gANSg✓Pre-
packagedgsoftware
(deeds,ghistoricalgrecords,gandgblueprintsgaregallgcovered)
Agbusinessownersgpolicygisg-gANSg✓Agself-containedgpre-packagegpolicy
Ingagcommercialgpackagegpolicy,gwhogmaygcancelgthegpolicygingwritinggandg
makegchangesgtogthegpolicygwithgthegconsentgofgtheginsurer?g-
ANSg✓Firstgnamedginsured
g
Undergagdwellinggpolicy,gwhichgofgthegfollowinggclausesgappliesgifganginsure
dghasglostgonegofgtwogmatchinggsilvergcandlesticks?g-gANSg✓Pairgorgset
(ifgonlygonegitemgofgagsetghasgbeenglost,gtheginsurergisgnotgobligatedgtogpaygthegtot
algvaluegofgthegset)
WhichgofgthegfollowinggwouldgbegcoveredgundergthegFilmgCoveragegForm?g-
ANSg✓Nonegaregcovered
g
PROPERTYgANDgCASUALTY
, 2
PROPERTY
(deteriorationgofgagfilm
exposuregofgagnegativegfilmgtoglight
electricalgerasuregofgagtape)
ThegregulargNationalgFloodgInsurancegProgramgwouldginsuregangeligiblegsi
ngle-familygdwellinggforgupgtog-gANSg✓$250,000
Undergthegcommercialgpropertygcoveragegprogram,gthegbasicgcausesgofglos
sgformginsuresgagainstglossgcausedgbyg-gANSg✓Sprinklergleakage
WhichgsituationgwouldgNOTgbegcoveredgbygthegbasicgCausesgofgLossgformgu
ndergagcommercialgpropertygpolicy?g-
g ANSg✓Thegsurfgsidegclubgwaterfrontgrestaurantgisgdamagedgwhengfloodgwatersgr
isegandgseepgintogthegrestaurant
Angendorsementgaddedgtogagbusinessownersgpolicygthatgprovidesgcoverage
g forgdirectgdamagegcausedgbygutilitygservicegdisruptiongstemminggfromgagc
overedgperilgisgcalledg-gANSg✓UtilitygServicesg-gdirectgdamage
Whichgofgthegfollowinggcoversgagcarriergforgliabilitygforglossgtogcargogwhileg
itgisgbeinggtransportedgingagtruck?g-gANSg✓Motorgtruckgcargogpolicyg-
g truckersgform
Aghouseginsuredgundergagdwellinggpolicyghasgbeengvacantgforg70gconsecuti
vegdays.gWhichgofgthegfollowinggstatementsgisgtrue?g-
g ANSg✓Lossgbygvandalismgandgmaliciousgmischiefgisgexcluded
PROPERTYgANDgCASUALTY
, 3
PROPERTY
Anginsuredgcondominiumgunitgownergwantsgtogpurchasegfiregandgextended
coveragegforgpersonalgpropertygandgliabilitygcoveragegforghimselfgandghisg
g
familygmembers.gHegshouldgpurchaseg-gANSg✓HO-6
OngagDP-
3gDwellinggPropertygSpecialgFormgpolicy,gthegcoveragegprovidedgforgperso
nalgpropertygisg-gANSg✓ThegsamegasgprovidedgongthegDP-2gbroadgform
Agbusinessgusinggitsgowngtrucksgtogmovegitsgowngcargogwouldginsuregthegca
rgogusingg-gANSg✓Motorgtruckgcargog-gownersgform
Whichgofgthegfollowingghomeownersgformsgisgdesignedgforgindividualsgthat
owngandgresidegingagcondominium?g-gANSg✓HO-6
g
Howglonggisgthegwaitinggperiodgaftergthegapplicationghasgbeengacceptedgbef
oregfloodgcoverageggoesgintogeffect?g-gANSg✓30gdays
Ifgtheginsuredgownsgagwatchgvaluedgatg$10,000,gfullgcoveragegcangbegprovid
edgongaghomeownersgpolicygbygpurchasinggtheg-
ANSg✓Scheduledgpersonalgpropertygendorsement
g
WhichgofgthegfollowinggwouldgNOTgbegcoveredgbygmedicalgpaymentsgtogoth
ersgingSectiongIIgofgyourgHOgpolicy?g-
ANSg✓Yougcutgyourgleggwhilegwhackinggweedsgingyourgbackyardgwithgyourgneig
g
hbour’sgweedgwhacker
UnclegBilly'sgBurgergBargwasgforcedgtogclosegforg10gdaysgingAugustgwhength
egpowergcompany'sgtransformergwasgdestroyedgbyglightning,gandgUnclegBill
ygwasgwithoutgelectricity.gWhichgofgthegfollowinggendorsementsgcouldgbega
PROPERTYgANDgCASUALTY
, 4
PROPERTY
ddedgtogBilly'sgbusinessownersgpolicygthatgwouldgprovidegprotectiongagain
stglossgofgincomegfromgsuchgevents?g-gANSg✓Utilitygservicesg-
g timegelementgendorsement
WhichgofgthegfollowinggwouldgNOTgbegconsideredgagflood?g-
g ANSg✓Sewergbackup
Accordinggtogthegappraisalgconditiongofgaghomeownersgpolicy,gwhatgproced
uregmaygbegfollowedgifgtheginsurergandginsuredgdognotgagreegasgtogthegsizeg
ofgagloss?g-
g ANSg✓Eachgsidegselectsgitsgowngappraiser,gandgthegappraisersgselectgangumpireg
togsettleganygdifferencesgbetweengthegappraisers
AgBOPg(businessownersgpolicy)gisgmostgsimilargtog-gANSg✓Homeowners
=becausegbothgrequiregthatgthegpolicygprovidegpropertyginsurancegandgliabilitygi
nsurancegingagsinglegpolicy
Agcoveredgwatercraftgwasgdamagedgingangaccident.gThegactualgcashgvaluego
fgthegdamagedgpropertygwasgassessedgatg$10,000.gThegcostgofgrepairsgforgth
egwatercraftgwasgassessedgatg$5,000.gTheginsured'sgwatercraftgpolicygisgwri
ttengwithgag$25,000glimit.gHowgmuchgwillgtheginsurergpaygforgcoveragegtogd
amagegtogthegwatercraft?g-gANSg✓$5,000
\UndergthegHO-4gandgHO-
6ghomeownersgpolicygforms,gpropertygisginsuredgagainstg-
g ANSg✓Broadgformgperils
(theygprovidegthegsameglevelgofgcoveragegasgCoveragegCgingthegHO-2gandgHO-3)
PROPERTYgANDgCASUALTY
PROPERTY
PROPERTY AND CASUALTY INSURANCE EXA
G G G G
M QUESTIONS AND ANSWERS UPDATED (20
G G G G G
24/2025) (VERIFIED ANSWERS) G G
Accordinggtogthegcommongpolicygconditionsgforgagcommercialgpackagegpoli
cy,gifgtheginsuredgdies,gthegpolicygrightsgandgdutiesg-
ANSg✓Automaticallygtransfergtogaglegalgrepresentative
g
Valuablegpapersgandgrecordsgformgprovidesgcoveragegforgthegreconstructio
ngofgallgofgthegfollowinggtypesgofgrecordsgEXCEPTg-gANSg✓Pre-
packagedgsoftware
(deeds,ghistoricalgrecords,gandgblueprintsgaregallgcovered)
Agbusinessownersgpolicygisg-gANSg✓Agself-containedgpre-packagegpolicy
Ingagcommercialgpackagegpolicy,gwhogmaygcancelgthegpolicygingwritinggandg
makegchangesgtogthegpolicygwithgthegconsentgofgtheginsurer?g-
ANSg✓Firstgnamedginsured
g
Undergagdwellinggpolicy,gwhichgofgthegfollowinggclausesgappliesgifganginsure
dghasglostgonegofgtwogmatchinggsilvergcandlesticks?g-gANSg✓Pairgorgset
(ifgonlygonegitemgofgagsetghasgbeenglost,gtheginsurergisgnotgobligatedgtogpaygthegtot
algvaluegofgthegset)
WhichgofgthegfollowinggwouldgbegcoveredgundergthegFilmgCoveragegForm?g-
ANSg✓Nonegaregcovered
g
PROPERTYgANDgCASUALTY
, 2
PROPERTY
(deteriorationgofgagfilm
exposuregofgagnegativegfilmgtoglight
electricalgerasuregofgagtape)
ThegregulargNationalgFloodgInsurancegProgramgwouldginsuregangeligiblegsi
ngle-familygdwellinggforgupgtog-gANSg✓$250,000
Undergthegcommercialgpropertygcoveragegprogram,gthegbasicgcausesgofglos
sgformginsuresgagainstglossgcausedgbyg-gANSg✓Sprinklergleakage
WhichgsituationgwouldgNOTgbegcoveredgbygthegbasicgCausesgofgLossgformgu
ndergagcommercialgpropertygpolicy?g-
g ANSg✓Thegsurfgsidegclubgwaterfrontgrestaurantgisgdamagedgwhengfloodgwatersgr
isegandgseepgintogthegrestaurant
Angendorsementgaddedgtogagbusinessownersgpolicygthatgprovidesgcoverage
g forgdirectgdamagegcausedgbygutilitygservicegdisruptiongstemminggfromgagc
overedgperilgisgcalledg-gANSg✓UtilitygServicesg-gdirectgdamage
Whichgofgthegfollowinggcoversgagcarriergforgliabilitygforglossgtogcargogwhileg
itgisgbeinggtransportedgingagtruck?g-gANSg✓Motorgtruckgcargogpolicyg-
g truckersgform
Aghouseginsuredgundergagdwellinggpolicyghasgbeengvacantgforg70gconsecuti
vegdays.gWhichgofgthegfollowinggstatementsgisgtrue?g-
g ANSg✓Lossgbygvandalismgandgmaliciousgmischiefgisgexcluded
PROPERTYgANDgCASUALTY
, 3
PROPERTY
Anginsuredgcondominiumgunitgownergwantsgtogpurchasegfiregandgextended
coveragegforgpersonalgpropertygandgliabilitygcoveragegforghimselfgandghisg
g
familygmembers.gHegshouldgpurchaseg-gANSg✓HO-6
OngagDP-
3gDwellinggPropertygSpecialgFormgpolicy,gthegcoveragegprovidedgforgperso
nalgpropertygisg-gANSg✓ThegsamegasgprovidedgongthegDP-2gbroadgform
Agbusinessgusinggitsgowngtrucksgtogmovegitsgowngcargogwouldginsuregthegca
rgogusingg-gANSg✓Motorgtruckgcargog-gownersgform
Whichgofgthegfollowingghomeownersgformsgisgdesignedgforgindividualsgthat
owngandgresidegingagcondominium?g-gANSg✓HO-6
g
Howglonggisgthegwaitinggperiodgaftergthegapplicationghasgbeengacceptedgbef
oregfloodgcoverageggoesgintogeffect?g-gANSg✓30gdays
Ifgtheginsuredgownsgagwatchgvaluedgatg$10,000,gfullgcoveragegcangbegprovid
edgongaghomeownersgpolicygbygpurchasinggtheg-
ANSg✓Scheduledgpersonalgpropertygendorsement
g
WhichgofgthegfollowinggwouldgNOTgbegcoveredgbygmedicalgpaymentsgtogoth
ersgingSectiongIIgofgyourgHOgpolicy?g-
ANSg✓Yougcutgyourgleggwhilegwhackinggweedsgingyourgbackyardgwithgyourgneig
g
hbour’sgweedgwhacker
UnclegBilly'sgBurgergBargwasgforcedgtogclosegforg10gdaysgingAugustgwhength
egpowergcompany'sgtransformergwasgdestroyedgbyglightning,gandgUnclegBill
ygwasgwithoutgelectricity.gWhichgofgthegfollowinggendorsementsgcouldgbega
PROPERTYgANDgCASUALTY
, 4
PROPERTY
ddedgtogBilly'sgbusinessownersgpolicygthatgwouldgprovidegprotectiongagain
stglossgofgincomegfromgsuchgevents?g-gANSg✓Utilitygservicesg-
g timegelementgendorsement
WhichgofgthegfollowinggwouldgNOTgbegconsideredgagflood?g-
g ANSg✓Sewergbackup
Accordinggtogthegappraisalgconditiongofgaghomeownersgpolicy,gwhatgproced
uregmaygbegfollowedgifgtheginsurergandginsuredgdognotgagreegasgtogthegsizeg
ofgagloss?g-
g ANSg✓Eachgsidegselectsgitsgowngappraiser,gandgthegappraisersgselectgangumpireg
togsettleganygdifferencesgbetweengthegappraisers
AgBOPg(businessownersgpolicy)gisgmostgsimilargtog-gANSg✓Homeowners
=becausegbothgrequiregthatgthegpolicygprovidegpropertyginsurancegandgliabilitygi
nsurancegingagsinglegpolicy
Agcoveredgwatercraftgwasgdamagedgingangaccident.gThegactualgcashgvaluego
fgthegdamagedgpropertygwasgassessedgatg$10,000.gThegcostgofgrepairsgforgth
egwatercraftgwasgassessedgatg$5,000.gTheginsured'sgwatercraftgpolicygisgwri
ttengwithgag$25,000glimit.gHowgmuchgwillgtheginsurergpaygforgcoveragegtogd
amagegtogthegwatercraft?g-gANSg✓$5,000
\UndergthegHO-4gandgHO-
6ghomeownersgpolicygforms,gpropertygisginsuredgagainstg-
g ANSg✓Broadgformgperils
(theygprovidegthegsameglevelgofgcoveragegasgCoveragegCgingthegHO-2gandgHO-3)
PROPERTYgANDgCASUALTY
