CFP - FP512 - MODULE 2 KEY TERMS EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED A++
personal liability umbrella policy (PLUP)
Coverage designed to provide a catastrophic layer of liability coverage on top of the
individual's homeowners and automobile insurance policies
actual cash value (ACV)
replacement cost minus depreciation
assessed value
Value taxing authority places on the property and upon which they base property taxes
off of
basic commercial general liability (CGL) policy
basic coverage
protects against a financial loss to the policyowner's home due to 12 perils
broad coverage
protects against a homeowner's loss due to the perils named under basic coverage plus
6 perils
businessowner's policy (BOP)
combines both property and liability coverages. An insurance company will generally
have a package of coverages that constitutes its version of the BOP. To that package is
added any coverages needed by the specific business.
catastrophe liability insurance
, PLUP insurance
coinsurance penalty formula
(Amount of Insurance )/(Amount of Insurance Required) x Loss - Deductible
coinsurance provision commercial package policy (CPP)
package of monoline forms that can be modified (to some extent) as needed by the
individual company (which typically will be larger than companies using the BOP)
comprehensive (other-than-collision) damage
when something other than collision (e.g., fire, wind, hail, vandalism, etc.) damages the
insured vehicle.
damage by collision
when the insured hits something or the vehicle is overturned.
endorsements
typically coverage additions or deletions
flood insurance
provides coverage for physical loss from a flood
HO-2 policy
provides broad coverage for the dwelling and personal property. In addition, this form
broadens certain perils and adds other perils. (named perils)
HO-3 policy
provides broad coverage for the dwelling and personal property. In addition, this form
broadens certain perils and adds other perils. (open perils)
HO-4 policy
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED A++
personal liability umbrella policy (PLUP)
Coverage designed to provide a catastrophic layer of liability coverage on top of the
individual's homeowners and automobile insurance policies
actual cash value (ACV)
replacement cost minus depreciation
assessed value
Value taxing authority places on the property and upon which they base property taxes
off of
basic commercial general liability (CGL) policy
basic coverage
protects against a financial loss to the policyowner's home due to 12 perils
broad coverage
protects against a homeowner's loss due to the perils named under basic coverage plus
6 perils
businessowner's policy (BOP)
combines both property and liability coverages. An insurance company will generally
have a package of coverages that constitutes its version of the BOP. To that package is
added any coverages needed by the specific business.
catastrophe liability insurance
, PLUP insurance
coinsurance penalty formula
(Amount of Insurance )/(Amount of Insurance Required) x Loss - Deductible
coinsurance provision commercial package policy (CPP)
package of monoline forms that can be modified (to some extent) as needed by the
individual company (which typically will be larger than companies using the BOP)
comprehensive (other-than-collision) damage
when something other than collision (e.g., fire, wind, hail, vandalism, etc.) damages the
insured vehicle.
damage by collision
when the insured hits something or the vehicle is overturned.
endorsements
typically coverage additions or deletions
flood insurance
provides coverage for physical loss from a flood
HO-2 policy
provides broad coverage for the dwelling and personal property. In addition, this form
broadens certain perils and adds other perils. (named perils)
HO-3 policy
provides broad coverage for the dwelling and personal property. In addition, this form
broadens certain perils and adds other perils. (open perils)
HO-4 policy
