NC Property and Casualty Insurance Exam |
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Latest Update 2026
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Terms in this set (614)
Standard Fire Policy (SFP) The SFP is the core and the basis upon which all
modern personal and commercial line policies are
based.
SFP can be used to insure either commercial
business risk or personal residence.
SFP Perils FLR
Fire Lightening Removal
Removal- Standard Fire Policy is the process of removing property to protect it
from the perils of fire and lightening at the insured
premises or when fire or lightening at neighboring
premises endanger property located at the insured
premises. SFP automatically provides removal
coverages for 5 days.
SFP Losses Covered Damage by the peril
Damage as a direct result of the peril
Water damage from putting out a fire
Water damage from rain, hole burnes in roof.
, SFP Exclusions A- T-O-N-E-R
Acts of War
Orders of Civil Authority
Theft
Neglect
Explosion or Riot
SFP Conditional Exclusions Increase in hazard. ex. making fireworks in a home
Vacancy or Unoccupancy for more than 60 days.
SFP Inception & Expiration starts 12:01 am
expires 12:01 am
4 limits on SFP policy Recovery may not exceed the lowest amount of:
Policy limit
ACV
Cost to repair or replace
Interest of the insured
Pro Rata Liability condition when more than one policy covers the same loss.
(Policy A limits of liab/ A+B) x Loss
(Policy B limits of liab/ A+B) x Loss
Equals the amount both policies will contribute.
Questions with 100% Correct Answers | Verified |
Latest Update 2026
Save
Terms in this set (614)
Standard Fire Policy (SFP) The SFP is the core and the basis upon which all
modern personal and commercial line policies are
based.
SFP can be used to insure either commercial
business risk or personal residence.
SFP Perils FLR
Fire Lightening Removal
Removal- Standard Fire Policy is the process of removing property to protect it
from the perils of fire and lightening at the insured
premises or when fire or lightening at neighboring
premises endanger property located at the insured
premises. SFP automatically provides removal
coverages for 5 days.
SFP Losses Covered Damage by the peril
Damage as a direct result of the peril
Water damage from putting out a fire
Water damage from rain, hole burnes in roof.
, SFP Exclusions A- T-O-N-E-R
Acts of War
Orders of Civil Authority
Theft
Neglect
Explosion or Riot
SFP Conditional Exclusions Increase in hazard. ex. making fireworks in a home
Vacancy or Unoccupancy for more than 60 days.
SFP Inception & Expiration starts 12:01 am
expires 12:01 am
4 limits on SFP policy Recovery may not exceed the lowest amount of:
Policy limit
ACV
Cost to repair or replace
Interest of the insured
Pro Rata Liability condition when more than one policy covers the same loss.
(Policy A limits of liab/ A+B) x Loss
(Policy B limits of liab/ A+B) x Loss
Equals the amount both policies will contribute.
