NHPCI - New Hampshire Property and Casualty Insurance

Question 21: A homeowner in an area prone to seismic activity wants coverage for cracked foundations and collapsed chimneys caused by earth movement, a peril the standard homeowners form excludes, so the producer attaches an optional form that restores this protection subject to its own separate deductible. Which endorsement is this?

the ordinance or law endorsement

the personal property replacement cost endorsement

the earthquake endorsement

the scheduled personal property endorsement

Question 22: An insured begins caring for several neighborhood children in the home for a fee, and the producer explains that the standard homeowners policy excludes business liability, so an endorsement must be added to restore both liability and, if elected, property coverage for this child care business. Which endorsement is needed?

the business pursuits endorsement

the personal injury endorsement

the earthquake endorsement

the home day care endorsement

Question 23: An insured is sued after making a false statement that damages a neighbor's reputation, and the producer notes that this claim involves no bodily injury or property damage, so it falls outside personal liability coverage unless an endorsement broadening the definition of covered injury has been added. Which endorsement helps?

the personal injury endorsement

the business pursuits endorsement

the watercraft endorsement

the earthquake endorsement

Question 24: The standard homeowners policy settles personal property losses at actual cash value, deducting depreciation, but an insured wants damaged belongings replaced at the cost of a new item of similar kind and quality without that deduction. Which endorsement should the producer add to accomplish this?

the scheduled personal property endorsement

the personal property replacement cost endorsement

the ordinance or law endorsement

the earthquake endorsement

Question 25: A covered loss destroys most of an older home, and rebuilding to current code will cost more than repairing the structure exactly as it stood, an added expense the base policy excludes beyond a built-in allowance. Which endorsement should the producer recommend to raise the available limit for this cost?

the earthquake endorsement

the personal property replacement cost endorsement

the ordinance or law endorsement

the personal injury endorsement

Question 26: An insured owns a valuable engagement ring worth far more than the special limit the homeowners policy places on jewelry, so the producer lists the ring separately with its own appraised value and attaches open peril coverage specifically for that item. Which endorsement accomplishes this scheduling?

the personal property replacement cost endorsement

the ordinance or law endorsement

the home day care endorsement

the personal articles floater

Question 27: An insurer settles a claim for a damaged sofa by starting with the cost to buy a new sofa of similar kind and quality, then subtracting an amount that reflects the sofa's age, wear, and condition before the loss occurred. Which valuation method is the insurer applying to this claim?

actual cash value

replacement cost

agreed value

functional replacement cost

Question 28: An owner of a manufactured home that does not meet the underwriting requirements applied to a conventional dwelling seeks property and liability coverage structured much like a homeowners policy but written specifically for this type of movable residence. Which policy is designed for this owner's situation?

the dwelling basic form

the mobile home policy

the unit owners form

the businessowners policy

Question 29: A homeowner adds earthquake coverage and learns the deductible for this peril works differently from the flat dollar deductible on the rest of the policy, being calculated as a percentage of the applicable coverage limit, which produces a much larger out-of-pocket amount for a serious loss. Which feature is described?

a flat dollar deductible

a coinsurance penalty

a percentage earthquake deductible

a special limit of liability

Question 30: An insured wants liability protection above the limits already carried on the homeowners and personal auto policies in case a serious lawsuit exceeds those underlying amounts, and the producer recommends a separate policy designed to sit above and supplement those existing liability limits. Which policy is being recommended?

a mobile home policy

an earthquake endorsement

a personal articles floater

a personal umbrella policy

Question 31: A homeowner learns that the standard homeowners policy excludes rising water and surface flooding entirely, and that protection against this peril is available only through a federally backed program offered in communities that agree to adopt floodplain management standards. Which program provides this separate flood protection?

the national flood insurance program

the earthquake endorsement

a personal umbrella policy

the ordinance or law endorsement

Question 32: A contractor wants building coverage, general liability coverage, and inland marine coverage for tools written together under one set of common conditions instead of three unrelated contracts. Which policy structure is designed specifically to combine two or more monoline coverage parts into a single contract for one premium?

A businessowners policy

A commercial package policy

A monoline liability policy

An umbrella liability policy

Question 33: An underwriter assembling a commercial package policy needs one page that identifies the named insured, the mailing address, the policy period, and which coverage parts the insured purchased. Which policy component is designed to hold this shared, contract-wide information for every coverage part included in the package?

The Common Policy Conditions

The insuring agreement

The Common Policy Declarations

A coverage part exclusion

Question 34: A new producer is reading a commercial property coverage form and finds a paragraph stating the insurer will pay for direct physical loss to covered property caused by a covered cause of loss. Which basic component of the coverage form does this paragraph represent?

A policy exclusion

A policy condition

A coverage extension

The insuring agreement

Question 35: A property coverage form first states that the insurer will pay for direct physical loss from a covered cause of loss, and then lists flood, earthquake, and ordinance enforcement as causes for which no payment applies. Which component of the coverage form do that second, limiting list represent?

The exclusions

The insuring agreement

The declarations

A coverage extension

Question 36: A retailer carrying the required coinsurance percentage discovers that newly acquired stock at a second location is automatically covered for a limited amount even though that location was never added by endorsement. Which feature of the building and personal property coverage form explains this automatic, limited protection?

The coinsurance condition

A coverage extension

The vacancy condition

The mortgageholder clause

Question 37: A single covered event damages both a building and business personal property, and the loss happens to qualify for payment under two different coverage parts written in the same commercial package policy. Which common condition prevents the insured from collecting the full loss amount twice under both coverage parts?

The other insurance condition

The subrogation condition

Insurance under two or more coverages

The appraisal condition

Question 38: A commercial package policy contains a property coverage part built from its own declarations, a coverage form, a causes-of-loss form, and applicable conditions, in addition to the Common Policy Declarations and Common Policy Conditions shared by the whole package. What does this layered arrangement best illustrate about the package?

Every coverage part shares one limit

Only the declarations page ever varies

Coverage parts cannot carry endorsements

Each coverage part functions almost independently

Question 39: An insured owns a warehouse and wants the structure, its permanently installed fixtures, and the equipment used to service the building, such as fire extinguishing apparatus, covered under one coverage form. Which coverage form under the commercial property coverage part is designed to insure the structure and these attached items?

The building coverage form

The business personal property form

The legal liability coverage form

The builders risk form

Question 40: A shop owner leases a building but owns the furniture, the store fixtures, the merchandise on the shelves, and improvements made to the leased space. Which coverage form is intended to insure this contents and improvements exposure rather than the building the shop owner does not own?

The building coverage form

The business personal property form

The extra expense form

The commercial crime form

NHPCI New Hampshire Property and Casualty Insurance - Set 2 - Part 2

Question 27: An insurer settles a claim for a damaged sofa by starting with the cost to buy a new sofa of similar kind and quality, then subtracting an amount that reflects the sofa's age, wear, and condition before the loss occurred. Which valuation method is the insurer applying to this claim?

Question 34: A new producer is reading a commercial property coverage form and finds a paragraph stating the insurer will pay for direct physical loss to covered property caused by a covered cause of loss. Which basic component of the coverage form does this paragraph represent?

Question 40: A shop owner leases a building but owns the furniture, the store fixtures, the merchandise on the shelves, and improvements made to the leased space. Which coverage form is intended to insure this contents and improvements exposure rather than the building the shop owner does not own?

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