Property Insurance FundamentalsQuestion 180 of 215
Which list correctly identifies perils typically found on a basic-form property policy?
a.Fire, lightning, windstorm or hail, explosion, smoke, aircraft or vehicles, riot or civil commotion, vandalism, sprinkler leakage
b.Flood, earthquake, war, nuclear hazard, intentional acts
c.Wear and tear, mechanical breakdown, inherent vice, settling
d.Loss of use, ordinance or law, governmental seizure
Explanation
The traditional basic-form perils include fire, lightning, windstorm or hail, explosion, smoke, aircraft or vehicles, riot or civil commotion, vandalism, and sprinkler leakage (with sinkhole and volcanic action sometimes added). Flood, earthquake, war, and nuclear hazard are not basic-form perils; they are common exclusions. Wear, tear, and inherent vice are also excluded.
Law Reference: ISO Basic Form perils (industry standard)Practice all 215 questions free — no signup required.
Related questions on this topic
- 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?
- 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?
- 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?
- A bakery owns the building, the ovens permanently bolted to the floor, the loose mixing bowls, and the inventory of flour. For property-insurance purposes, which item is most clearly classified as PERSONAL property?
- California Insurance Code section 2051 generally defines the measure of indemnity for a partial loss to property as which of the following?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California Property & Casualty Insurance License Exam · How we review