DC Property Insurance

Question 1

Under DC law, which entity has the authority to license surplus lines insurers operating in the District?

Accepted Answer

DC Department of Insurance, Securities and Banking (DISB)

Answer

DC City Council

Answer

National Association of Insurance Commissioners (NAIC)

Answer

Federal Insurance Office (FIO)

Question 2

Under a DC commercial property policy, the 'coinsurance clause' requires the insured to maintain coverage equal to what percentage of property value to avoid a penalty?

Accepted Answer

80%

Answer

50%

Answer

70%

Answer

100%

Question 3

What type of DC property insurance policy covers the building, business personal property, and business income in a single contract?

Accepted Answer

Business Owner's Policy (BOP)

Answer

Dwelling policy (DP-3)

Answer

Commercial package policy (CPP)

Answer

Inland marine policy

Question 4

Which endorsement adds earthquake coverage to a DC commercial property policy?

Accepted Answer

Earthquake endorsement

Answer

Extended coverage endorsement (EC)

Answer

Difference in conditions (DIC) policy endorsement

Answer

Flood endorsement

Question 5

Under a DC commercial property policy, 'actual cash value' (ACV) is best described as:

Accepted Answer

Replacement cost minus physical depreciation

Answer

Original purchase price of the property

Answer

Market value of the land and building combined

Answer

Appraised value at the time of policy inception

Question 6

Business income coverage (also called business interruption insurance) is triggered by which of the following?

Accepted Answer

A covered direct physical loss to the insured property that suspends operations

Answer

Any decrease in business revenue, regardless of cause

Answer

A decline in the local DC economy affecting sales

Answer

An owner's voluntary decision to cease operations