Please answer only Application Question1

Personal umbrella Self-insured policy (539) retention (539) Retained limit (541) Title insurance (536) Scheduled personal property Yacht insurance (530) endorsement (529) REVIEW QUESTIONS 1. The ISO dwelling program has several forms. Describe the characteristics of each of the following: a. Dwelling Property 1 (basic form) b. Dwelling Property 2 (broad form) c. Dwelling Property 3 (special form) 2. Explain how personal liability insurance can be added to a dwelling policy. 3. Describe the basic characteristics of inland marine floaters. 4. A personal articles floater (PAF) provides broad protec- tion for valuable personal property. Give three exam- ples of property that might require coverage under a PAF instead of a standard homeowners policy. 5. Identify the coverages found in a typical boatowners package policy. 6. Why are buildings in flood plains difficult for private insurers to insure? 7. The National Flood Insurance Program (NFIP) has numerous provisions. Briefly explain each of the following: a. Write your own program b. Definition of a flood c. Waiting period 8. What is the purpose of a FAIR plan? 9. Describe the basic characteristics of title insurance. 10. Briefly explain the basic characteristics of a personal umbrella policy. damage is $20,000, and the replacement cost is $24,000. b. The tenants move out because the apartment is unfit for normal living. It will take three months to restore the apartment to its former condition. The apartment is normally rented for $900 monthly. c. A tenant's personal property is damaged in the fire. The actual cash value of the damaged property is $5,000, and its replacement cost is $7,000. 2. Melissa owns a mobile home that is insured by an endorsement to a Homeowners 3 policy. Explain to what extent, if at all, this policy would pay for each of the following losses: 2. A severe windstorm damages the roof of the mobile home. b. A built-in range and oven are also damaged in the windstorm. c. A window air conditioner is badly damaged in the windstorm. d. Melissa must move to a furnished apartment for three months while the mobile home is being repaired. 3. Morgan has an outboard motorboat insured under a boatowners package policy. Indicate whether each of the following losses would be covered under Morgan's policy. If the loss is not covered, or not completely cov- ered, explain why. a. Morgan's boat was badly damaged when it struck a log floating in the water. b. A passenger in Morgan's boat was injured and incurred medical expenses when the boat struck a concrete abutment. c. The motor was stolen when the boat was docked at a marina. d. A small child in Morgan's boat was not wearing a life jacket. The child fell overboard and drowned. The child's parents have sued Morgan. 4. Dan has a personal umbrella policy with a $1 million limit. The self-insured retention is $250. Dan has a homeowners policy with no special endorsements and an auto insurance policy, The policies have the follow- ing liability limits: Homeowners policy: $300,000 Personal auto policy: $250,000/$500,000/$50,000 The liability limits meet the umbrella insurer's require- ments with respect to the minimum amounts of liabil. ity insurance on the underlying contracts. Indicate APPLICATION QUESTIONS 1. Pedro owns a sixplex apartment building and lives in one unit. The building is insured under the Dwelling Property 1 (basic form) policy for $320,000. The replace- ment cost of the building is $400,000. Explain to what extent, if any, Pedro will recover for the following losses: a. A fire occurs in one of the apartments because of defective wiring. The actual cash value of the