Adjusterpro Adjuster Pro Module 3-A
Homeowners & 3 A.1 Tx Ho
Supplemental Questions And Answers
100% Correct!!! Latest Updated 2024
The Standard Fire Policy - ANSWER✔✔ -1st used in 1918 in NY
-Provided homeowner & commercial property protection.
-ACV valuation
-Named peril policy
-Only covered fire & lightening
"165 Line" Policy - ANSWER✔✔ The original Standard Fire Policy spent 165
lines explaining new insurance concepts that are still used today:
-Concealment & misrepresentation
-Property & perils excluded from coverage
-Insurance cancellation due to an increase in hazards
-Obligations to a mortgagee
-Insured's duties in the event of a loss
-Subrogation
-Appraisal
Line of Coverage - ANSWER✔✔ A particular risk or group of risks covered by an
insurance policy
Example: The HO policy combines several "lines" of coverage (Property, Liability,
etc) to meet the needs of a typical homeowner.
,Monoline Policy - ANSWER✔✔ An insurance policy that covers only one risk or
type of risk
Example: Jane can purchase a monoline policy to cover her valuable stamp
collection & nothing else (even if she keeps half the collection at home & half in a
bank vault).
4 parts of the Standard Fire Policy: the foundation for property coverage -
ANSWER✔✔ Property owners often have a package policy that builds on this
basic coverage.
DICE
Declarations Page
Insuring Agreement
Conditions
Exclusions
Sections of Standard Fire Policy: Declarations - ANSWER✔✔ Gives an overview
of the whole policy, including:
-name insured
-location of the insured property
-policy period
-policy premium
-coverage types
-coverage limits
-any applicable endorsements
Sections of Standard Fire Policy: Insuring Agreement - ANSWER✔✔ States what
coverage the insurer will provide in exchange for the insured's premiums.
,Sections of Standard Fire Policy: Conditions - ANSWER✔✔ Describes certain
issues that can restrict or suspend coverage, including:
-proof of loss
-preservation of property
-cancellation
-assignment
-subrogation
-other insurance
-vacancy
Requirements in Case Loss Occurs - ANSWER✔✔ -Notify insurer
-Protect the property from further damage
-Organize personal property, separating damaged from undamaged
-Make checklist of damaged & undamaged property with details about ACV
-Submit to examination under oath
-Show the insurance company (upon request): Remains of damaged property &
Accounts, bills, and invoices.
-Submit proof of loss form within the specified time period.
Periods of Limitations Tolled - ANSWER✔✔ -State statutes often pause (toll)
limitation periods from date claimant files a proof of loss to date claim is paid or
denied.
-This protects claimant's right to sue the insurer, even if insurer denies claim after
period of limitation expires.
Sections of Standard Fire Policy: Exclusions - ANSWER✔✔ States which perils
are NOT covered under policy such as:
-Extreme perils that cause catastrophic damage to multiple policyholders at a time.
, -Intentional losses
-Risks that are impossible to quantify
-Risks brought on by a policyholder's negligent actions
Endorsements & Standard Fire Policy - ANSWER✔✔ Written documents attached
to a policy that add or change coverage for specific perils or insured items
-can be added when a policy is purchased
-can be added any time during the term of the policy, if both parties agree
-Also called "rider," "addendums," or "attachments"
EX: An endorsement can change a policy from ACV to Replacement Cost
valuations
Modern property insurance policies are based on the Standard Fire policy: -
ANSWER✔✔ -They have simply added optional endorsements to broaden or
individualize coverage.
-The Standard Fire Policy is a "springboard" for all comprehensive residential and
commercial property policies.
Property Ins Categories: Personal Lines - ANSWER✔✔ for possessions intended
for personal use (e.g. a home, family mini-van, or land).
Property Ins Categories: Commercial Lines: - ANSWER✔✔ for possessions
intended for business or corporate use (e.g. a restaurant or church)
Residential dwellings fall under Personal Lines & are insured by either
Homeowners or Dwelling policies.
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