Property and Casualty Insurance
Exam Practice (MT)
HO-2 – answer mid range home insurance policy that is named perils
HO-3 – answer Most common---open perils on house, named perils on personal
belongings
HO-4 - answer renter’s insurance...personal property and improvements covered
named perils
HO-5 - answer open perils policy on home and personal property
HO-6 - answertown home and condo named perils policy...owner only needs to insure
the interior
HO-8 - answerWORST POLICY---Named perils on home and belongings but only 10
perils covered
DP-1 - answeroffers most basic insurance for land lords...cheapest... named
perils(ACV)
DP-2 - answeraverage protection, named perils policy (Replacement Cost)
DP-3 - answerbest rental insurance. It is open perils excluding ordinance, earth
movement, water damage, power failure, nuclear hazard, intentional loss, mold, govn.
action... Replacement Cost----coverage similar to HO
Replacement Cost - answer
CPP - answerpurchased by large or expanding companies or companies w/ heightened
risk...starts with property and general liability insurance
Business Income Insurance - answerreplaces lost revenue and covers expenses if
business is shut down due to any covered loss
Business Vehicle Insurance - answercovers vehicles owned and used by your business
Business Crime Insurance - answercovers losses from burglary, corporate fraud,
employee dishonesty, and other crimes that are covered
,Commercial Umbrella Liability - answerincreases and broadens liability, filling in gaps
left by other coverages
Electronic Data Processing Coverage - answercovers costs associated with the loss or
damage of electronic data processing media or equipment
Equipment Breakdown - answeraka Boiler and Machinery Insurance, covers losses
from the malfunction of heating, electrical, air conditioning, telephone system, and other
equip
Employment Practices Liability - answercovers costs tied to disputes with employees
over issues
Inland Marine - answercovers transport of goods over water and land
Pollution Liability - answercovers costs related to pollution, including clean-up and
injuries
Commercial Building and Business Personal Property Form - answercovers building,
business personal property and personal property of others for direct loss or damage,
subject to declared limits...includes add-ons
Causes of Loss Form - answercauses of loss form is combined with one or more
coverage forms, the commercial property conditions, the common policy conditions
form, and the declarations to make up ISO commercial prop policy.
Basic - answer10 peril
Broad - answer16 peril
Special - answerall risk
Business Income - answercoverage applies to loss suffered during repair or
replacement of damaged property
ISO Forms - answer1) business income and extra expense coverage form(CP0030)
2) Business Income coverage form without expense(CP0032)(BIC)
Extra Expense - answeraddition to or in stead of BIC. There are 2 ISO:
1) Commercial prop forms that provide extra expense coverage
2)extra expense coverage form
Equipment Breakdown(Commercial property) - answercovers loss of equipment due to
mechanical or electrical issues(Replacement)
, Business Owners Policy(BOP) - answerpolicy for smaller companies, grants three
protections: Prop Insurance(Standard or Special), Business Interruption
Insurance(covers loss of income), and liability
Builder's Risk - answercoverage that applies to person's or organization's insurable
interest in materials, fixtures, and equip used in building of structure
Personal Article Floaters - answerinsures valuable personal property(rings, necklace),
which usually aren't covered under HO coverage
Commercial Property Floaters - answeroffer protection for business prop that is not in a
fixed location...Attached to base prop insurance policy...covers in-transit
National Flood Insurance Program(Reasons for it) - answer-created to protect people
from floods
-must be in a community participating in NFIP(1968)
-if mortgage is backed by govn., you MUST have insurance
-if house is above flood-zone, rates are less
-flood insurance is important!!
Earthquake - answercovers damage from earthquakes or other earth movement...rates
change on where you live and how high your risk is...this is optional and is NOT covered
under HO's
Mobile Homes:Comprehensive Coverage - answerprovides liability and prop damage
for mobile homes
Property Coverage(Watercraft) - answerprotects a boat from certain risks. May pay for
repairs or replacement
Liability Coverage(Watercraft) - answermay help pay for expenses due to boat accident
that causes damage to someone else
Medical Payments Coverage(Watercraft) - answermay help pay for medical expenses of
someone injured on your boat
Uninsured Watercraft Coverage - answerwill cover you for damage done by a boat that
is not insured
Farm Owners - answercovers other structures and livestock on farm
Windstorm - answerin windy areas, companies exclude wind damage
Law of Large Numbers - answercredibility of data increases with the size of the data
pool....some use adverse risk, which may single out high risk areas
Exam Practice (MT)
HO-2 – answer mid range home insurance policy that is named perils
HO-3 – answer Most common---open perils on house, named perils on personal
belongings
HO-4 - answer renter’s insurance...personal property and improvements covered
named perils
HO-5 - answer open perils policy on home and personal property
HO-6 - answertown home and condo named perils policy...owner only needs to insure
the interior
HO-8 - answerWORST POLICY---Named perils on home and belongings but only 10
perils covered
DP-1 - answeroffers most basic insurance for land lords...cheapest... named
perils(ACV)
DP-2 - answeraverage protection, named perils policy (Replacement Cost)
DP-3 - answerbest rental insurance. It is open perils excluding ordinance, earth
movement, water damage, power failure, nuclear hazard, intentional loss, mold, govn.
action... Replacement Cost----coverage similar to HO
Replacement Cost - answer
CPP - answerpurchased by large or expanding companies or companies w/ heightened
risk...starts with property and general liability insurance
Business Income Insurance - answerreplaces lost revenue and covers expenses if
business is shut down due to any covered loss
Business Vehicle Insurance - answercovers vehicles owned and used by your business
Business Crime Insurance - answercovers losses from burglary, corporate fraud,
employee dishonesty, and other crimes that are covered
,Commercial Umbrella Liability - answerincreases and broadens liability, filling in gaps
left by other coverages
Electronic Data Processing Coverage - answercovers costs associated with the loss or
damage of electronic data processing media or equipment
Equipment Breakdown - answeraka Boiler and Machinery Insurance, covers losses
from the malfunction of heating, electrical, air conditioning, telephone system, and other
equip
Employment Practices Liability - answercovers costs tied to disputes with employees
over issues
Inland Marine - answercovers transport of goods over water and land
Pollution Liability - answercovers costs related to pollution, including clean-up and
injuries
Commercial Building and Business Personal Property Form - answercovers building,
business personal property and personal property of others for direct loss or damage,
subject to declared limits...includes add-ons
Causes of Loss Form - answercauses of loss form is combined with one or more
coverage forms, the commercial property conditions, the common policy conditions
form, and the declarations to make up ISO commercial prop policy.
Basic - answer10 peril
Broad - answer16 peril
Special - answerall risk
Business Income - answercoverage applies to loss suffered during repair or
replacement of damaged property
ISO Forms - answer1) business income and extra expense coverage form(CP0030)
2) Business Income coverage form without expense(CP0032)(BIC)
Extra Expense - answeraddition to or in stead of BIC. There are 2 ISO:
1) Commercial prop forms that provide extra expense coverage
2)extra expense coverage form
Equipment Breakdown(Commercial property) - answercovers loss of equipment due to
mechanical or electrical issues(Replacement)
, Business Owners Policy(BOP) - answerpolicy for smaller companies, grants three
protections: Prop Insurance(Standard or Special), Business Interruption
Insurance(covers loss of income), and liability
Builder's Risk - answercoverage that applies to person's or organization's insurable
interest in materials, fixtures, and equip used in building of structure
Personal Article Floaters - answerinsures valuable personal property(rings, necklace),
which usually aren't covered under HO coverage
Commercial Property Floaters - answeroffer protection for business prop that is not in a
fixed location...Attached to base prop insurance policy...covers in-transit
National Flood Insurance Program(Reasons for it) - answer-created to protect people
from floods
-must be in a community participating in NFIP(1968)
-if mortgage is backed by govn., you MUST have insurance
-if house is above flood-zone, rates are less
-flood insurance is important!!
Earthquake - answercovers damage from earthquakes or other earth movement...rates
change on where you live and how high your risk is...this is optional and is NOT covered
under HO's
Mobile Homes:Comprehensive Coverage - answerprovides liability and prop damage
for mobile homes
Property Coverage(Watercraft) - answerprotects a boat from certain risks. May pay for
repairs or replacement
Liability Coverage(Watercraft) - answermay help pay for expenses due to boat accident
that causes damage to someone else
Medical Payments Coverage(Watercraft) - answermay help pay for medical expenses of
someone injured on your boat
Uninsured Watercraft Coverage - answerwill cover you for damage done by a boat that
is not insured
Farm Owners - answercovers other structures and livestock on farm
Windstorm - answerin windy areas, companies exclude wind damage
Law of Large Numbers - answercredibility of data increases with the size of the data
pool....some use adverse risk, which may single out high risk areas
