CPCU 553 Exam Questions and Answers Already Passed
Base premium is influenced by - Answers dwelling location, public protection class, construction factors,
coverage amount, and policy form selected.
Special Limit of Liability for: Cash - Answers $200
Special Limit of Liability for: Loss by theft of firearms and related equipment - Answers $2500
Special Limit of Liability for: Loss be theft of silverware, tea sets, pewter, etc - Answers $2500
Special Limit of Liability for: Property on the residence premises used primarily for business purposes -
Answers $2500
Special Limit of Liability for: securities, manuscripts, passports, stamps, personal records, - Answers
$1500
Special Limit of Liability for: watercraft - Answers $1500
Special Limit of Liability for: Property away from the residence premises used primarily for business
purposes and no in a veh - Answers $1500
Collapse - Answers excluded as a cause of loss but coverage for collapse that results from some other
causes of loss is provided under the Section I—Property Coverages.
Special Limit of Liability for: Loss by theft of Jewelry and Furs - Answers $1500
The Subrogation condition allows... - Answers the insured to waive all rights to recover against any
person provided the waiver is in writing and made before a loss.
Home Business Insurance Coverage endorsement /HOMEBIZ - Answers for insureds who operate an
office or business from their homes.
HO-2 Broad Form - Answers - designed for the owner-occupant of a house
- provides NAMED PERILS coverage for A, B, and C
- the insured has the burden of proof to prove it was covered.
- has lower premiums
HO-5 Comprehensive - Answers - provides the broadest property coverage
- provides special form for Cov C
HO-8 Modified Coverage - Answers - designed for use where the replacement cost of an owner-occupied
dwelling significantly exceeds it market value
, - after a loss, the insurer will no pay ore than the cost of "common construction materials and methods"
(functional equivalent)
Occurrence - Answers an accident, and can be a sudden event, a gradual series of incidents, or a
continuous condition, as long as it is fortuitous.
Under the Damage to Property of Others additional coverage - Answers the insurer will pay, at
replacement cost, up to $1,000 per occurrence for property damage to others caused by an insured,
regardless of fault or legal liability
Accumulation period - Answers the period b/t the annuity owner's purchase and the age at which
benefit payments begin
Fixed Dollar Annuity - Answers insurers invests its customers' annuity premiums in securities in
exchange for a fixed rate of return
Variable annuities - Answers owner invests their annuity premiums in diversified subaccounts with
various objectives to optimize returns according to an investment time horizon.
Combination plans - Answers combines feature of fixed dollar and variable annuities
equity indexed annuities - Answers fixed dollar annuity linked to a stock market index
Flood Insurance Reform Act of 2004 - Answers - created incentives to mitigate repeated losses, i.e.
elevation assistance, moving homes away from flood waters
- refusal of a mitigation offer triggers rate increases
Loss assessment coverage (under DP-30 - Answers up to $1000
The DP-3 does not provide coverage for - Answers liability or theft losses
DP-3 Theft Coverage endorsement - Answers covers theft on premises and off-premises. Off premises is
available only if the insd purchases on-premises coverage
DP-3 Limited Theft Coverage - Answers covers only on-premises theft. Does not cover off premises at all.
Write Your Own" (WYO) flood insurance program - Answers allows private insurers to write flood
insurance using National Flood Insurance Program guidelines`
The property removed increased limits endorsement available under the MH endorsement - Answers It
provides up to $500 for reasonable expenses incurred for the removal and return of the mobile home if
it is endangered by an insured peril.
Coverage D - Answers Rental Value Coverage / Loss of Use
Coverage E - Answers Personal Liability
Base premium is influenced by - Answers dwelling location, public protection class, construction factors,
coverage amount, and policy form selected.
Special Limit of Liability for: Cash - Answers $200
Special Limit of Liability for: Loss by theft of firearms and related equipment - Answers $2500
Special Limit of Liability for: Loss be theft of silverware, tea sets, pewter, etc - Answers $2500
Special Limit of Liability for: Property on the residence premises used primarily for business purposes -
Answers $2500
Special Limit of Liability for: securities, manuscripts, passports, stamps, personal records, - Answers
$1500
Special Limit of Liability for: watercraft - Answers $1500
Special Limit of Liability for: Property away from the residence premises used primarily for business
purposes and no in a veh - Answers $1500
Collapse - Answers excluded as a cause of loss but coverage for collapse that results from some other
causes of loss is provided under the Section I—Property Coverages.
Special Limit of Liability for: Loss by theft of Jewelry and Furs - Answers $1500
The Subrogation condition allows... - Answers the insured to waive all rights to recover against any
person provided the waiver is in writing and made before a loss.
Home Business Insurance Coverage endorsement /HOMEBIZ - Answers for insureds who operate an
office or business from their homes.
HO-2 Broad Form - Answers - designed for the owner-occupant of a house
- provides NAMED PERILS coverage for A, B, and C
- the insured has the burden of proof to prove it was covered.
- has lower premiums
HO-5 Comprehensive - Answers - provides the broadest property coverage
- provides special form for Cov C
HO-8 Modified Coverage - Answers - designed for use where the replacement cost of an owner-occupied
dwelling significantly exceeds it market value
, - after a loss, the insurer will no pay ore than the cost of "common construction materials and methods"
(functional equivalent)
Occurrence - Answers an accident, and can be a sudden event, a gradual series of incidents, or a
continuous condition, as long as it is fortuitous.
Under the Damage to Property of Others additional coverage - Answers the insurer will pay, at
replacement cost, up to $1,000 per occurrence for property damage to others caused by an insured,
regardless of fault or legal liability
Accumulation period - Answers the period b/t the annuity owner's purchase and the age at which
benefit payments begin
Fixed Dollar Annuity - Answers insurers invests its customers' annuity premiums in securities in
exchange for a fixed rate of return
Variable annuities - Answers owner invests their annuity premiums in diversified subaccounts with
various objectives to optimize returns according to an investment time horizon.
Combination plans - Answers combines feature of fixed dollar and variable annuities
equity indexed annuities - Answers fixed dollar annuity linked to a stock market index
Flood Insurance Reform Act of 2004 - Answers - created incentives to mitigate repeated losses, i.e.
elevation assistance, moving homes away from flood waters
- refusal of a mitigation offer triggers rate increases
Loss assessment coverage (under DP-30 - Answers up to $1000
The DP-3 does not provide coverage for - Answers liability or theft losses
DP-3 Theft Coverage endorsement - Answers covers theft on premises and off-premises. Off premises is
available only if the insd purchases on-premises coverage
DP-3 Limited Theft Coverage - Answers covers only on-premises theft. Does not cover off premises at all.
Write Your Own" (WYO) flood insurance program - Answers allows private insurers to write flood
insurance using National Flood Insurance Program guidelines`
The property removed increased limits endorsement available under the MH endorsement - Answers It
provides up to $500 for reasonable expenses incurred for the removal and return of the mobile home if
it is endangered by an insured peril.
Coverage D - Answers Rental Value Coverage / Loss of Use
Coverage E - Answers Personal Liability
