Which list correctly identifies perils typically found on a basic-form property policy?
a.Flood and surface water, earthquake and other earth movement, war and warlike military action, nuclear hazard, and intentional acts by the insured or an agent
b.Fire, lightning, windstorm or hail, explosion, smoke, aircraft or vehicles, riot or civil commotion, vandalism, sprinkler leakage
c.Wear and tear, gradual mechanical breakdown, inherent vice or latent defect, and settling, cracking, shrinking or expansion of building foundations and walls
d.Loss of use, ordinance or law compliance, 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)This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
Practice all 531 questions free — no signup required.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
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 team · Verified against California Property & Casualty Insurance License Exam · How we review