State Farm Insurance License Practice Exam

What does DICEE stand for in basic property policy structure?

1. Declarations, Information, Coverage, Exclusions, Endorsements

2. Declarations, Insuring agreement, Conditions, Exclusions, Endorsements

3. Details, Insuring agreement, Coverage, Exclusions, Endorsements

4. Declarations, Information, Conditions, Endorsements, Exceptions

The correct answer is: Declarations, Insuring agreement, Conditions, Exclusions, Endorsements

DICEE stands for Declarations, Insuring agreement, Conditions, Exclusions, and Endorsements. In the context of a basic property policy structure, each component plays a crucial role in outlining the terms and details of the insurance coverage provided. The Declarations section includes key information such as the policyholder's name, the location of the insured property, and the limits of coverage. The Insuring agreement outlines the insurer's promise to pay for covered losses, detailing the protections offered under the policy. Conditions set forth the obligations of both the insurer and the insured, specifying requirements that must be met for the coverage to apply. Exclusions list situations or types of losses that are not covered by the policy, which is essential for both parties to understand the limitations of coverage. Lastly, Endorsements are amendments to the policy that provide additional coverage or modify the existing terms. Understanding DICEE is critical for anyone involved in the insurance field as it helps ensure that both insurance agents and clients have a comprehensive grasp of what the policy entails, fostering transparency and clarity in the coverage agreement.