View Full Version : HO-3 questions

02-03-2005, 03:50 PM
HO-3 questions:

1. 1995 Q35
According to Hamilton and Malecki, under an unendorsed ISO HO-3 policy, how much would the insurer pay given the following factors involving a fire loss?
Coverage A limit is $90,000
Deductible is $250
Dwelling replacement cost is $150,000 (at time of loss)
Dwelling loss repair cost is $100,250
Dwelling loss ACV cost is $85,000

The answer is $85,000.
Anybody know why the deductible is not subtracted in this situation?

2. Why the following is false?

According to Hamilton and Malecki, the loss settlement clause of a standard unendorsed ISO (HO-3) policy covers personal property on an actual cash value basis.

Thanks in advance.

Super Silver Haze
02-03-2005, 04:13 PM
Just taking the answers straight out of my CSM, since I haven't covered this stuff yet this sitting.

It gives the answer for your first question as 84,750, but still says to select multiple choice answer B, I guess since it's the closest one to the actual answer.

The answer to the second question is given as true, using chapter 5, page 35 of the Wiening/Rejda text as a reference.

So it looks like you don't really have a problem here. :)