Insurance Policy Concepts

On a DP-2 broad form, is Coverage B in addition to other coverage limits?

• Yes, it is in addition.

• No, it is not in addition.

• It depends on the policy.

• Only if specified in the endorsement.

Does proof of loss have to contain the names of everyone in the household?

• Yes, it must include all names.

• No, it does not.

• Only the head of the household's name is required.

• It depends on the insurance policy.

How are losses shared when a dwelling is covered by more than one policy?

• Pro-rata under the other insurance (or pro-rata liability) clause.

• Equal distribution among all policies involved.

• Based on the age of the policies.

• According to the highest policy limit.

If an insured has a $20,000 coverage A limit with a 4% automatic increase endorsement, what is the policy limit on July 1?

• $20,200

• $20,400

• $20,600

• $20,800

Do dwelling property policies cover personal liability automatically?

• Yes, it is included by default.

• No, it can be added by endorsement for an additional premium.

• Only for certain types of properties.

• Yes, but only for rental properties.

On what basis are coinsurance requirements on an HO?

• Based upon the present replacement cost.

• Based upon the historical cost of the property.

• Based upon the market value of the property.

• Based upon the original purchase price.

Is the land your house sits on insurable?

• Yes, the land is insurable.

• No, the land is not insurable.

• Only if it is in a flood zone.

• Only if you have a special policy.

Do dwelling property policies cover freezing of plumbing if the heat was not left on?

• Yes, they do.

• No, they do not.

• Only if the temperature drops below freezing.

• Only for certain types of plumbing.

What type of policy is the basic dwelling form DP-1?

• A named or specified peril policy.

• An all-risk policy.

• A comprehensive policy.

• A liability policy.

Can other structures coverage apply to a structure rented out as a private garage?

• No, it cannot apply.

• Yes, it can apply.

• Only if the garage is attached to a house.

• Only if the garage is used for commercial purposes.