Property Insurance FundamentalsQuestion 178 of 215
A property policy that lists each peril it will cover and pays only when a loss is caused by one of those listed perils is best described as which type of form?
a.An open-peril form, sometimes called a special form
b.A named-peril form
c.A liability-only form
d.A self-insured retention form
Explanation
A named-peril (also called specified-peril) form provides coverage only for the perils that are specifically listed in the policy. Open-peril or special-form coverage works in the opposite way: it covers all direct physical loss except for perils that are specifically excluded.
Law Reference: ISO Basic Form (CP 10 10) concept; Cal. Ins. Code §675 et seq.Practice all 215 questions free — no signup required.
Related questions on this topic
- Under a special-form (open-peril) property policy, who bears the burden of proving how a loss occurred when there is a dispute about coverage?
- Which list correctly identifies perils typically found on a basic-form property policy?
- Compared with the basic form, the broad form generally adds which group of additional perils?
- Which of the following losses is most likely to be EXCLUDED on a standard commercial property special form?
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- California Insurance Code section 2051 generally defines the measure of indemnity for a partial loss to property as which of the following?
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