Dwelling PolicyQuestion 71 of 158
A California Personal Lines broker-agent is asked to write property coverage for a client. Which of the following risks is BEST suited for an ISO Dwelling Policy and within the broker's license scope?
a.A condominium owners' association common-area structure
b.A single-family rental house owned in the client's own name
c.A small office building used by the owner's tax-prep business
d.A six-unit apartment building owned by an individual investor
Explanation
The Personal Lines license under Cal. Ins. Code §1625.5 covers personal auto and one-to-four-family residential dwellings owned by an individual. A single-family rental house owned in the client's own name fits both the DP eligibility rules (no more than four units) and the Personal Lines license scope, and it is the textbook landlord use of the Dwelling Policy. A six-unit building exceeds the four-unit DP ceiling, an office building is a commercial fire risk outside Personal Lines, and a condo association's common-area structure is a commercial habitational risk that belongs on a separate commercial policy.
Law Reference: Cal. Ins. Code §1625.5; ISO Dwelling Property eligibilityPractice all 158 questions free — no signup required.
Related questions on this topic
- Which ISO Dwelling Property form provides open-perils (special form) coverage on the dwelling structure but continues to insure personal property on a named-perils basis?
- By default, on what valuation basis does the DP-1 Basic Form settle a partial loss to the dwelling?
- A landlord's tenant must move out for three months while fire damage to the rented house is repaired. Which DP coverage reimburses the landlord for the rent the tenant would have paid?
- A landlord insured under a DP-3 is sued by a tenant who slipped on a broken porch step. What does the base DP-3 pay toward the landlord's liability defense?
- A landlord's DP-3 rental house has been vacant for 75 consecutive days while between tenants. Vandals break in and spray-paint the interior. How does the policy respond?
- A DP-3 dwelling has a replacement cost of $500,000. The landlord carries $300,000 of insurance and suffers a $60,000 partial loss with a $1,000 deductible. Using the coinsurance proportionate formula, what is the insurer's payment?
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