TheTinsuredThasTfiledTaTclaimTunderTtheT"BusinessTIncomeTDepartmentTPropertiesT-
TBroadTForm"TbecauseTtheTprimaryTbuyerTofTproductsTandTservicesTfromTtheTbusinessThasTfiledTforTbankruptcyTunderTthisTformTtheTprimaryTbuyersTbusinessTwo
uldTbeTknownTasT-TcorrectTanswersATrecipientTlocation
recipientTlocationT-TcorrectTanswersBusinessesTwhoTsupportTinsuredTbyTbeingTtheTprimaryTbuyerTforTtheirTproducts
HO-3T(specialTform)T-TcorrectTanswerscoversTtheTdwellingTandTotherTstructuresTonTaTrisk-of-direct-
physicalTlossTbasis.TAllTdirectTphysicalTlossesTareTcoveredTexceptTthoseTlossesTspecificallyTexcluded.TPersonalTpropertyTisTcoveredTonTaTnamedTperilsTbasis
HO-5TComprehensiveTFormT-TcorrectTanswersprovidesTopenTperilsTcoverageT("all-risksTcoverage")TonTtheTdwelling,TotherTstructuresTandTpersonalTproperty.
HO-2T(broadTform)T-TcorrectTanswerscoversTtheTdwelling,TotherTstructures,TandTpersonalTpropertyTonTaTnamedTperilsTbasis
HO-4T(contentsTbroadTform)T-TcorrectTanswersOnlyTcoversTaTtenant'sTpersonalTpropertyTonTaTnamedTperilsTbasis
TheTdwellingTisTinsuredTforT200,000TunderTDP-2TdwellingTpolicyThowTmuchTcoverageTappliesTtoTtheTbarn?T-
TcorrectTanswersNothingTfarmTpropertyTareTnotTeligibleTunderTtheTdwellingTpolicy.
ATCoveredTAutoTincludesTthoseTvehicle(s)TlistedTonTtheTDeclarations,TplusTanyTtrailersTorTwagonsTownedTbyTtheTNamedTInsured,TanyTnewlyTacquiredTvehicles,Ta
ndTanyTvehicleTusedTasTaT_________.T-TcorrectTanswersTemporaryTSubstituteTAuto
TheTcoveredTautoTisTdefinedTinTtheTpolicyTasTallTofTtheTfollowingTEXCEPT:
A)TanyTadditionalTautoTacquiredTinTtheTpastT30Tdays.T
B)TanyTautoTshownTinTtheTdeclarations.T
C)TanyTautoTusedTasTaTtemporaryTsubstituteTwhileTanTinsuredTautoTisTbeingTrepaired.T
D)TanyTtrailerTownedTbyTtheTinsuredTorTspouse.T-TcorrectTanswersAnswer:TAT
,AnTadditionalTautoTacquiredTduringTtheTpolicyTperiodTisTconsideredTaTcoveredTauto.THowever,TsomeTrestrictionsTdoTapply.TForTexample,TifTtheTnewlyTacquiredTa
utoTisTinTadditionTtoTanyTvehicleTshownTonTtheTdeclarations,TitTmustTbeTinsuredTwithinT14TdaysTofTtheTpurchaseTdate.TIfTitTreplacesToneTofTtheTcars,TtheTinsuredT
doesTnotTneedTtoTaddTitTduringTthatTpolicyTperiod.
CoverageTFTonThomeownersTpolicyTprovidesT-
TcorrectTanswersMedicalTpaymentsTtoTothers;TpaysTallTnecessaryTmedicalTexpensesTforTupTtoTthreeTyearsTafterTanTaccident.
CoverageTF:TMedicalTPaymentsTtoTOthersT-TcorrectTanswersDoesTnotTapplyTtoTtheTinsuredTorTmembersTofTtheTinsured'sThousehold
NotTliabilityTcoverageTandTisTnotTbaseTonTfault
AnTinsuredThasTtakenTinventoryTofThisTmerchandiseTandTdiscoversTaTsubstantialTshortageTofTvaluableTstock.THeTsubmitsTaTclaimTtoThisTinsuranceTcarrierTthatTpro
videsThisTcoverageTunderTaTBusinessTOwnersTPolicy.TWhatTcoverageTisTprovidedTbyTtheTBOP?T-
TcorrectTanswersNoTcoverageTwouldTapply,TthereTisTnoTcoverageTforTmissingTpropertyTwhenTthereTisTnoTphysicalTevidenceTtoTshowTcauseTofTloss
ArbitrationT(ADR)T-TcorrectTanswersNeutralTthirdTpartyThearsTaTdisputeTandTmakesTaTdecisionTbothTpartiesThaveTagreedTtoTfollow.
MediationT-
TcorrectTanswersATmethodTofTsettlingTdisputesToutsideTofTcourtTbyTusingTtheTservicesTofTaTneutralTthirdTparty,TcalledTaTmediator.TTheTmediatorTactsTasTaTcommu
nicatingTagentTbetweenTtheTpartiesTandTsuggestsTwaysTinTwhichTtheTpartiesTcanTresolveTtheirTdispute.TNotTbinding.
DifferenceTbetweenTArbitrationTandTMeditation?T-TcorrectTanswersMediationTisTnotTbinding,TArbitrationTis.
Mediation-ArbitrationT-TcorrectTanswersIfTtheTpartiesTcannotTreachTaTsettlementTthroughTmediation,TanTarbitratorTwillTresolveTtheTdispute.
TheTbuildingTandTpersonalTpropertyTcoverageTformTprovidesTcoverageTforToutdoorTsignsT-
TcorrectTanswersWhetherTattachedTtoTtheTbuildingTorTnotTforTupTtoT2,500TifTdamagedTbyTaTperilTinsuredTagainst.
BuildingTandTPersonalTPropertyTCoverageTFormT-
TcorrectTanswersCommercialTPropertyTcoverageTformTthatTcoversTbuildings,TtheTinsured'sTbusinessTpersonalTproperty,TandTtheTpersonalTpropertyTofTothersTloc
atedTatTtheTbusinessTpremises
ForeseeabilityTTestT-TcorrectTanswersToTdetermineTifTtheTdefendant'sTconductTwasTtheTproximateTcauseTofTtheTplaintiff'sTinjury,TtheTcourtTapplies
ForeseeabilityT-TcorrectTanswersexcludesTliabilityTforTharmsTthatTwereTsufficientlyTunforeseeableTatTtheTtimeTofTtheTdefendant'sTtortiousTconduct.
, PurposeTofTfreightTinsuranceT-TcorrectTanswersCoversTshipperTfees
FreightTInsuranceT-TcorrectTanswersindemnifiesTtheTshipTownerTforTtheTlossTofTearningsTifTtheTgoodsTareTdamagedTorTlostTandTareTnotTdelivered.TShipperTFees.
FreightTInsuranceT-TcorrectTanswersinsuresTthatTshipownerTwillTreceiveTpaymentTforTtransportationTcharges.
WhatTperilsTareTcoveredTonTtheTbasicTformTperilTofTtheTHomeownersTPolicyT-
TcorrectTanswersfire,Tlightning,Tsmoke,Twindstorm,Thurricane,Thail,Texplosion,TaircraftTandTvehicles,Tvandalism,TriotTandTcivilTcommotion,Ttheft,TandTpremisesTli
ability.
WhatTperilsTareTcoveredTunderTtheTbroadTfromTHomeownersTPolicyT-
TcorrectTanswersincludeTbasicTperilsTplusTfallingTobjects;TweightTofTice,Tsleet,TorTsnow;TfreezingTpipes;TandTsomeTcoverageTforTsuddenTandTaccidentalTwaterTdisc
harge.
ExclusionsTtoTHomeownersTpolicyT-TcorrectTanswersearthquakes;T
termites,Trats;T
freezingTpipesTwhileTyourThouseTisTunoccupied;T
lossesTifTyourThouseTisTvacantTforTtheTnumberTofTdaysTspecifiedTbyTyourTpolicy;T
wearTandTtearTorTmaintenance;TwindTorThailTdamageTtoTtreesTandTshrubs;Tmold,TexceptTnecessaryTcostsTtoTrepairTorTreplaceTpropertyTdamageTcausedTbyTaTcov
eredTwaterTloss;
andTwaterTdamageTresultingTfromTcontinuousTandTrepeatedTleakageTorTseepage.
Landlord'sTfurnishingT-TcorrectTanswersIsTnotTadditionalTcoverageTandTdoesn'tTinsuranceTtheTlimitsTofTtheTpolicy
PowerTtoTbindTmeansT-TcorrectTanswersTheTprincipalTisTboundTtoTtheTdecisionsTofTtheTadjuster
RVCT(replacementTcostTvalue)T-
TcorrectTanswersTheTcostTtoTreplaceTtheTpropertyTonTtheTsameTpremisesTwithTotherTpropertyTofTcomparableTmaterialTandTqualityTusedTforTtheTsameTpurpose
DP-3TSpecialTFormT-
TcorrectTanswersUnderTthisTDwellingTcoverageTform:TdwellingTandTotherTstructuresTareTcoveredTforTallTdirectTphysicalTdamageT(openTperil),TexceptTforTperilsTsp
ecificallyTexcluded..