DC Property Insurance 1

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

DISB licenses and regulates surplus lines insurers operating in Washington DC.

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

Most commercial property policies use an 80% coinsurance requirement, meaning the insured must carry coverage equal to at least 80% of the property's value.

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

A Business Owner's Policy (BOP) bundles building, business personal property, and business income coverage in a single policy designed for small to mid-sized businesses.

Question 4

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

Accepted Answer

Earthquake endorsement

Answer

An earthquake endorsement can be added to a commercial property policy to cover losses from seismic events, which are excluded in the standard form.

Question 5

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

Accepted Answer

Replacement cost minus physical depreciation

Answer

ACV equals the replacement cost of the property minus depreciation due to age, wear, and obsolescence.

DC - District of Columbia Insurance Practice Test

DC - District of Columbia Insurance Practice Test

DC Property Insurance 1