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FSU RMI 3011 - Test 2 Study Guide

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RMI3011 Test 2 Study GuideSection I- Homeowner’s Policy• Homeowner’s Policy is written for one to four family dwellings used exclusively for private residential purposes. • HO-2 (broad form) insures the dwelling and other structures and personal property against loss from covered perils (named perils only.) • HO-3 (special form) insures the dwelling and other structures against risk and direct physical loss to property. All physical losses are covered unless excluded. Basis of full replacement cost for losses to dwelling.• HO-4 (contents broad form) designated for tenants and provides personal liability insurance. Insures the belongings but not the building.• HO-5 (comprehensive form) insures the dwelling, other structures, and personal property against the risk of direct physical loss to property. Even belongings are insured (except for excluded losses.) • HO-6 (unit-owners form) designed for condo units, covers belongings and part of the building, usually walls and floors and other renovations made to the condo.• HO-8 (modified form) covers loss to dwelling and other structures based on repair cost using modern methods, for older homes. • Coverage A- Dwelling and any other structure attached to the dwelling. Cov b, c, and d are all percentages of this amount.• Coverage B- Other Structures separated by clear space, based on a percentage amount of coverage A (10% for HO-3). • Coverage C- Personal Property equal to 50% of the coverage of the dwelling, covers belongings on and off the premises. o Money (cash and coin) limit- 200o Securities (stamps, docs)- 1500o Watercraft- 1500o Theft of jewelry and furs- 1500o Theft of firearms- 2500o Theft of silverware, goldware, etc.- 2500• Coverage D- Loss of use provides additional living expense, fair rental value, and prohibited use when the premises cannot be used because of a covered loss. 30% of CovA. For prohibited use a max of two weeks expenses are covered.• Exclusions For Section Io Ordinance or law- condemned building must be built to new codeo Earth movement- earthquakeo Water damage- mold, fungus, dry roto Power failureo Neglect (at or after a loss)o Intentional losso Vacant for more than 60 dayso Hurricane (unless specifically endorsed.)• If the amount of insurance carried is less than 80% of the value of the building and a loss occurs to the dwelling, the insured receives the greater of:o Actual cash value to the part of the building damagedo (Amount of insurance carried/80% x replacement cost ) x LossSection II Homeowner’s Policy• Personal Liability Insurance protects against the named insured and family members against legal liability arising out of their personal acts.• Coverage E- Personal liability $100,000 per occurrence (bodily injury or property damaged caused by negligence). Unlimited defense cost, no personal injury coverage. • Coverage F- Medical Payments to others. $1000 per person. Not based on legal liability. “Please don’t sue me.” Does not apply to you or a regular resident of the dwelling.• Exclusions for CovE and CovFo Motor vehicles (usually driven on roads)o Watercraft- if used in a race, rented to others, used to carry people for a fee, used for business purpose.o Aircraft (unless a toy airplane)o Hovercrafto Expected or intentional injury unless in self-defenseo Business activitieso Professional serviceso Uninsured locationso Waro Communicable diseaseo Sexual molestation, corporal punishment, physical or mental abuseo Controlled substance• CovE Exclusions Onlyo Contractual liabilityo Property owned by an insuredo Property in care of an insuredo Workers compo Nuclear energyo Bodily injury to an insured• Cov F Exclusionso Injury to a residence employee off an insured locationo Worker’s compo Nuclear energyo Regular residents on insured location• Claim expenses are paid in full by insurer, all court costs, attorney fees, and other legal expenses are covered and unlimited.• Damage to property of others pays up to $1000 per occurrence for property damaged caused by an insured.• Endorsements to the Homeowner’s Policyo Inflation guardo Earthquakeo Personal property replacement cost loss settlement- no depreciation deductiono Scheduled personal property (agreed value loss settlement)o Personal injury endorsement- false arrest, malicious prosecution, wrongful eviction, slander, defamation, libel.o Watercrafto Home business insurance coverageo Identity theft• Personal Umbrella Liability Insurance is excess insurance, from 1 mil-10 mil and inexpensive to add. The underlying coverage fulfills the deductible. Requires underlying coverages and the minimum underlying limit for homeowners, auto, or watercraft. Has fewer exclusions than underlying coverage, retention on some losses. Expanded coverage, worldwide auto policy.• Rate Factors- HO Liabilityo “bad dogs”o Exotic animalso Swimming poolo Trampolineo Living on a lakeo Serious losses previouslyo “target defendant” personalityAuto Insurance• Liability Coverage (Part A) protects a covered person against a suit or claim arising out of the ownership or operation of a covered vehicle.o Split Limits (50,000/100,0000/25,000) $50,000 limit of bodily injury coverage per person, $100,000 bodily injury per accident, $25,000 property damage per accident. o Single limit applies to bodily injury and property damage, total amount of insurance applies to the entire accident.o Defense costs do not count in the liability limit.o Liability covers the vehicles and whomever is driving it, broad definition of named insured. o Supplementary payments- bail bonds, appeal and release of attachment bonds, interest on judgments, loss of earnings, reasonable expenses. o CovA Exclusions Intentional injury Property owned or transported Used for public or livery conveyance (taxi) Used in “auto business” Used for racing or in a racing facility Worker’s comp• Medical Payments (Coverage B) are paid without regard to fault.o “Accident insurance” people in the car only, first party coverageo Covers the named insured and family members and others occupying a covered auto. Covers the named insured and family members as pedestrians. Covers going into and out of the vehicle. o Coordinates with PIP, pays 20% above PIP 80%, pays amounts above $10,000.• Uninsured Motorists (CovC) pays for bodily injury caused by an uninsured motorist or hit and run driver.o Must pass PIP threshold in FLo Underinsured


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