CISR PERSONAL LINES MISCELLANEOUS EXAM -

CISR PERSONAL LINES MISCELLANEOUS EXAM -

ACTUAL EXAM 100 QUESTIONS AND CORRECT DETAILED

ANSWERS WITH RATIONALES |AGRADE

What is the Permitted Incidental Occupancies - Residence Premises HO 04 42 used for? - ANSWER- An other structure with an eligible incidental "business" exposure typically offices, schools, or studios.

Rationale; The Limit of Liability & Description of Other Structure must be shown in the Schedule.

Under a standard ISO Homeowners policy, what are the two Coverage C

• Personal Property Special Limits of Liability that apply to property

used primarily for business? - ANSWER- 1 - $2,500.00 for personal property used primarily for "business" while on the "residence premises."

Rationale; 2 - $1,500.00 for personal property used primarily for "business" while away from the "residence premises"

*The limitations do not apply to property used occasionally for "business."

What is the Increased Limits on Business Property HO 04 12 endorsement used for? - ANSWER- To increase the Special Limit of Liability for "business" (personal) property on the "residence premises" to a maximum of $10,000.00.

What limit is the Special Limit of Liability automatically set to for property away from the "residence premises" under the Increased Limits on Business Property HO 04 12? - ANSWER- 60% of the limit of property on the "residence premises."

What does the Increased Limits on Business Property HO 04 12 not provide coverage on? - ANSWER- 1 - "Business" property that pertains to a "business" actually conducted on the "residence premises."

• - "Business" property in storage or held as a sample or for sale or

delivery after a sale.

What is the Permitted Incidental Occupancies - Residence Premises HO 04 42 endorsement used for? - ANSWER- Applies to personal property used in the "business" described in the Schedule & removes the $2,500.00 "business" limit for property on the "residence premises" for furnishings, supplies, and equipment. Property other than furnishings, supplies, and equipment is still limited to $2,500.00. Samples, inventory, and items sold but not delivered are limited.

Under Coverage C - Personal Property, what are the three exclusions that pertain to "business" property? - ANSWER- 1 - Property in an apartment regularly rented or held for rental to others by an "insured." 2

• Business data including such data stored in items such as paper

records, computers, and related equipment.

• - Credit cards, electronic fund transfer cards or access devices

used solely for deposit, withdrawal or transfer of funds.

What is the Landlord's Furnishings HO 05 46 endorsement used for? - ANSWER- To increase the Personal Property Limit to a maximum of $10,000.00 on property regularly rented or held for rental to others by an insured.

What does the Coverage E - Personal Liability Insuring Agreement state? - ANSWER- The insurance company will provide coverage for a claim against an "insured" for damages because of "bodily injury" or "property damage" caused by an "occurrence" covered by the policy.

What does the Coverage F - Medical Payments to Others Insuring Agreement state? - ANSWER- The insurance company will pay necessary medical expenses incurred within three years from the date of the accident causing "bodily injury."

What are the exceptions to the "business" exclusion that give back both personal liability and medical payments to others coverage for some "business" activities? - ANSWER- 1 - The rental or holding for rental of an "insured location" if on an occasional basis if used only as a residence.What is a trade?Skilled manual or mechanical work.

Examples: Painter, Carpenter, Electrician, etc.

What is a profession?A vocation requiring advanced education and training.

Examples: Physician, Dentist, Attorney, Veterinarian, etc.

What is an occupation?

An activity or pursuit in which a person is engaged; a person's usual or principal work or business.

What are the two parts of the definition of "Business"?Part 1 - A business includes a trade, profession, or occupation engaged in on a full-time, part-time, or occasional basis.

Part 2 - A business is any activity that is engaged in for money or other compensation unless it is one of four cited activities.

What are the four cited activities that can void the definition of business?

• - One or more activities for which no "insured" received more than

$2,000 in the 12 months prior to the beginning of the policy period.

• - Volunteer activities where no compensation is received other than

reimbursement of expenses.

• - Home day care provided without compensation even if there is a

mutual exchange of day care services.

• - Home day care to a relative of an "insured" even if receiving

compensation for the services.

Is coverage for a loss to the Coverage A - Dwelling effected by "business" use?No - there is not a limitation or exclusion for a dwelling with a "business" exposure.

What does the Homeowners 3 - Special Form policy automatically include in regards to Coverage A - Dwelling & Coverage B - Other Structures?