Iowa Personal Lines
Insurance questions
with 100% correct
answers with
Rationales(GUARANTE
ED SUCCESSS)
Dwelling Policy Broad Form (DP 00 01) - answer Dwelling
Policy Form that provides basic form named peril
coverage on both the building and contents. Losses are
adjusted on an actual cash value basis
Dwelling Policy Broad Form (DP 00 02) - answer Dwelling
Policy form that provides broad form named peril
coverage on both the building and contents. Building
losses are adjusted on a replacement cost basis and
contents are adjusted on a n actual cash value basis
Dwelling Policy Special Form (DP 00 03) - answer Dwelling
Policy Form that provides special form coverage on the
,building and named peril coverage on the contents.
Building losses are adjusted on a replacement cost basis
and contents are adjusted on an actual value basis
Endorsements - answer Insurance policy component used
to change a policy's original terms, conditions or
coverages
Duty to Defend - answer Liability policy provision that
requires the insurance company to investigate and
defend any claim or lawsuit brought against an insured
Additional Living Expense - answer Dwelling Policy
coverage that covers the necessary increases in living
expenses incurred by the insured in the event the
dwelling at the described location becomes uninhabitable
due to an insured peril
Loss to a Pair or Set Condition - answer Homeowner Policy
Condition that permits the insurer the right to restore the
part damaged or lost to its value prior to the loss or pay
the difference between the ACV of the property before
and after the loss.
,Adhesion - answer Insurance policy characteristic
requiring ambiguous policy language to be interpreted in
favor of the insured
AfterMarket Parts - Notice - answer Required notice that
advises the insured that repairs to a damaged auto may
be made with aftermarket auto parts and that if the
insured chooses to have original equipment parts install,
the insured will pay the difference.
Adverse Selection - answer Process of being selected
against. A risk that has a greater bias to an exposure than
the average risk. It is the tendency of poorer risks to seek
insurance.
Agency - answer Legal relationship that exists when one
party acts on behalf of another party
Aggregate Limits - answer Maximum overall limit of
liability for a policy period
Blanket Insurance - answer Single amounts of insurance
that is provided to all locations. For example personal
property under a homeowners policy is insured on a
blanket basis commonly commercial property insurance is
insured on a blanket basis
, Business Pursuits (HO 24 71) - answer Homeowners
Endorsement that covers occupational liability of those
who are employed by others
Functional Replacement Cost - answer Basic valuation
provision that permits the insurer to replace damaged
property with a functional equivalent. Generally used with
older properties.
Freezing - answer Common peril included in broad and
special form property policies. freezing includes freezing
of plumbing, heating, air conditioning, sprinkler system or
household appliance. For peril coverage to apply the
insured must maintain heat in the building or shut off the
water and drain the system
Friendly Fire - answer Deliberately ignited flame or glow
that stays within its intended confines
Generated Electrical Current - answer Common peril
included in broad and special form personal property
policies (Dwelling Policy and Homeowners Policy) Covers
damage to property caused by artificially generated
electrical current. Artificially generated electrical current
is any electrical current that is not natural. This peril
Insurance questions
with 100% correct
answers with
Rationales(GUARANTE
ED SUCCESSS)
Dwelling Policy Broad Form (DP 00 01) - answer Dwelling
Policy Form that provides basic form named peril
coverage on both the building and contents. Losses are
adjusted on an actual cash value basis
Dwelling Policy Broad Form (DP 00 02) - answer Dwelling
Policy form that provides broad form named peril
coverage on both the building and contents. Building
losses are adjusted on a replacement cost basis and
contents are adjusted on a n actual cash value basis
Dwelling Policy Special Form (DP 00 03) - answer Dwelling
Policy Form that provides special form coverage on the
,building and named peril coverage on the contents.
Building losses are adjusted on a replacement cost basis
and contents are adjusted on an actual value basis
Endorsements - answer Insurance policy component used
to change a policy's original terms, conditions or
coverages
Duty to Defend - answer Liability policy provision that
requires the insurance company to investigate and
defend any claim or lawsuit brought against an insured
Additional Living Expense - answer Dwelling Policy
coverage that covers the necessary increases in living
expenses incurred by the insured in the event the
dwelling at the described location becomes uninhabitable
due to an insured peril
Loss to a Pair or Set Condition - answer Homeowner Policy
Condition that permits the insurer the right to restore the
part damaged or lost to its value prior to the loss or pay
the difference between the ACV of the property before
and after the loss.
,Adhesion - answer Insurance policy characteristic
requiring ambiguous policy language to be interpreted in
favor of the insured
AfterMarket Parts - Notice - answer Required notice that
advises the insured that repairs to a damaged auto may
be made with aftermarket auto parts and that if the
insured chooses to have original equipment parts install,
the insured will pay the difference.
Adverse Selection - answer Process of being selected
against. A risk that has a greater bias to an exposure than
the average risk. It is the tendency of poorer risks to seek
insurance.
Agency - answer Legal relationship that exists when one
party acts on behalf of another party
Aggregate Limits - answer Maximum overall limit of
liability for a policy period
Blanket Insurance - answer Single amounts of insurance
that is provided to all locations. For example personal
property under a homeowners policy is insured on a
blanket basis commonly commercial property insurance is
insured on a blanket basis
, Business Pursuits (HO 24 71) - answer Homeowners
Endorsement that covers occupational liability of those
who are employed by others
Functional Replacement Cost - answer Basic valuation
provision that permits the insurer to replace damaged
property with a functional equivalent. Generally used with
older properties.
Freezing - answer Common peril included in broad and
special form property policies. freezing includes freezing
of plumbing, heating, air conditioning, sprinkler system or
household appliance. For peril coverage to apply the
insured must maintain heat in the building or shut off the
water and drain the system
Friendly Fire - answer Deliberately ignited flame or glow
that stays within its intended confines
Generated Electrical Current - answer Common peril
included in broad and special form personal property
policies (Dwelling Policy and Homeowners Policy) Covers
damage to property caused by artificially generated
electrical current. Artificially generated electrical current
is any electrical current that is not natural. This peril
