CPCU 555 Flashcards – Module 7

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[h] CPCU 555 – Module 7

[q] Miscellaneous Type Vehicle endorsement

[a] An endorsement to the Personal Auto Policy that provides liability, medical, uninsured motorist, and property damage coverage.  Coverage is provided for vehicles such as motor homes, motorcycles, and dirt bikes.

[q] Trailer/Camper Body Coverage endorsement

[a] An endorsement added to a Personal Auto Policy that extends coverage to direct or accidental loss to a trailer or camper body.  Also covers cooking equipment, plumbing, and refrigeration facilities.

[q] Lay-up provisoin

[a] A common provision that suspends certain coverages on recreational vehicles and watercraft for a specified period of time when they are in storage.

[q] Owned Motorized Golf Cart Physical Loss Coverage endorsement

[a] An endorsement to a homeowners policy that provides coverage for property damage to a golf cart.

[q] Incidental Low Power Recreational Motor Vehicle endorsement

[a] An endorsement to a homeowners policy that is used to extend the policy’s liability and medical payments coverage to vehicles that do not travel more than 15 miles per hour.

[q] Mobilehome endorsement

[a] An attachment to a homeowners policy that revises the policy’s definition of residence premises to include a mobile home and other structures.

[q] Mobile home insurance eligibility requirements

[a] Requirements:

Home must be designed for year-round living.

Home must be at least 10 feet wide and 40 feet long.

[q] Mobilehome endorsement Coverage A modification to homeowners policy

[a] The endorsement modifies Coverage A to include coverage for items such as built-in furnishings and appliances.

[q] Property Removed Increased Limit endorsement

[a] An endorsement that provides additional coverage if a mobile home is in danger due to a covered peril and removal is necessary.

[q] Transportation/Permission to Move endorsement

[a] An endorsement that covers perils of transporting and storing a mobile home for up to 30 days.

[q] Mobilehome Lienholder’s Single Interest endorsement

[a] An endorsement that covers the lienholder for transportation exposures and any loss resulting from the mobile home owner’s embezzlement of the mobile home.

[q] Actual Cash Value Mobilehome endorsement

[a] An endorsement that limits the insurer’s obligation to the least of:

1) Actual cash value.

2) Cost of repairs.

3) Cost of replacement.

4) Applicable coverage limit.

[q] Actual Cash Value Loss Settlement for Windstorm/Hail Losses to Roof Surfacing endorsement

[a] An endorsement that modifies the mobilehome policy’s loss settlement condition to apply Actual Cash Value loss settlement to covered damage to roof surfacing caused by hail or windstorm.

[q] Ordinance or Law Coverage endorsement

[a] An endorsement that provides coverage if a governmental authority or law orders repair, alteration, or removal of the mobile home or structures.

[q] Categories of watercraft loss exposures

[a] Categories:

Physical damage loss to watercraft.

Medical expenses for injuries.

Bodily injury and property damage liability.

[q] Small boat policy

[a] Insurance policy designed to cover boats up to 26 feet in length.

[q] Small boat policy property coverage

[a] Property coverage includes coverage for the boat, motor, equipment, and trailer.  Policy is typically written on an actual cash value basis, and covered losses include collision, theft of the boat’s motor or equipment, and lightning and wind damage.

[q] Small boat policy liability coverage

[a] Coverage:

Bodily injury, loss of life, and property damage to third parties.

Medical payments coverage is included for an insured person who sustains injury while in, upon, boarding, or leaving the boat.

[q] Small boat policy typical exclusions

[a] Typical exclusions:

Wear and tear.

Mechanical breakdown.

Rust and mold.

Damages from repair or renovation.

Loss occurring during business or racing use.

[q] Inherent vice

[a] A quality in property that causes it to damage or destroy itself.

[q] Perils of the sea

[a] Accidental causes of loss that are peculiar to the sea.

[q] Warranties contained in boatowners and yacht policies

[a] Warranties the insured must adhere to:

The boat will not be hired or chartered out.

The boat is in seaworthy condition.

The boat will not be in operation during any lay-up provision period.

The insured will not operate the boat outside the navigational limits specified in the policy.

[q] Boatowners and yacht policies property loss exclusions

[a] Exclusions:

Wear and tear, weathering, and damage from animal or marine life.

Mechanical breakdown.

Freezing and thawing of ice.

Loss during any official race.

Intentional loss.

War, nuclear hazard, and radioactive contamination.

[q] Boatowners and yacht policies liability loss exclusions

[a] Exclusions:

Losses occurring from illegal activities.

Rental or charter of the watercraft.

Use of the watercraft for racing.

Discharge of pollutants.

Damage resulting from transportation of the boat on land.

Losses covered by workers compensation.

[q] Protection and indemnity insurance

[a] A form of coverage that protects vessel owners against various liability claims that result from the operation of an insured vessel.

[q] Umbrella policy

[a] A policy designed to provide bodily  and personal injury coverage, and property damage liability coverage.  Provides additional liability limits over any underlying insurance policies.

[q] Bodily injury

[a] Bodily harm, sickness, disease, and death.

[q] Property damage

[a] Physical injury to or destruction of tangible personal property, including loss of use.

[q] Umbrella policy exclusions

[a] Typical exclusions:

Intentional injury.

Business property and professional liability.

Aircraft, watercraft, and recreational vehicles.

Transmission of communicable diseases.

Directors and officers liability.

Damage to insured’s property.

Obligations for which insured is legally liable under a workers compensation law.

[q] Umbrella policy conditions

[a] Conditions:

The insured must maintain underlying coverage.

The insured must give the insurer written notice of loss as soon as practicable.

The umbrella policy is excess over any other insurance, whether collectible or not.

The policy territory is worldwide.