ch5

Educational Objective 1

Key words and phrases

Residence premises

Other structure

Special-form coverage

Inherent vice

Ensuing loss

Named perils

Concurrent causation

Insurable interest

Proof of loss

Appraisal

Review questions

1-1 Briefly describe the coverage provided by each of the following sections of the homeowners policy.

a. section 1

b. section II

1-2 For each of the following property coverages of a homeowners policy,(1)briefly describe what is covered ,and (2)give at least one example .

a. Coverage A

b. Coverage B

c. Coverage C

d. Coverage D

1-3 What types of other structures are not covered by an unendorsed HO-3?

1-4 In an unendorsed HO-3,under what circumstances is personal property covered for less than the full Coverage C limit?

1-5 In the HO-3, what types of personal property are subject to special sublimits

a. For loss by any peril?

b. For loss by theft?

1-6 In the HO-3, what types of personal property are not covered at all

1-7 Briefly explain each of the coverages provided by Coverage D of the HO-3:

a. Additional living expense

b. Fair rental value

c. loss of use due to civil authority

1-8 Give an example of a covered loss to illustrate how each of the following Section I additional coverages of the HO-3 would apply:

a. Debris removal

b. Reasonable repairs

c. Trees, shrubs, and other plants

d. Fire department service charge

e. Credit card, electronic fund card or access device ,forgery, and counterfeit money?

f. Loss assessment

g. Collapse

h. Glass or safety glazing material

1-9. Ordinance or law is among the perils excluded under Section I of the HO-3.However, an additional coverage provides ordinance or law coverage for up to 10 percent of the Coverage A limit, and this amount can be increased by endorsement. Explain what kinds of loss or expense would be covered by ordinance or law coverage, subject to applicable limits.

1-10 What perils are excluded under Coverage A and B of the HO-3?

1-11 What named perils are covered under Coverage C of the HO-3?

1-12 What perils are excluded under Section I of the HO-3

1-13 What duties does an insured have following a loss that is or might be covered under the HO-3?

1-14 Under an unendorsed HO-3, how is personal property valued at the time of a loss?

1-15 The amount payable for a building loss might be one of three amounts, depending on how the limit of insurance compares to the replacement cost value of the damaged building. Under what circumstances will each of the following amounts be paid?

a. The replacement cost

b. The actual cash value

c. An amount between the replacement cost and the actual cash value

1-16 What options are available when an item that is part of a pair or set is damaged or destroyed?

1-17 What protection does the mortgage clause of the HO-3 provide to a mortgagee or mortgage holder?

1-18 Briefly summarize each of the following Section I conditions of the HO-3:

a. Insurable interest and limit of liability

b. Appraisal

c. Abandonment of property

d. Recovered property

e. Concealment or fraud

f. Loss payable clause