Hawaii Insurance Adjuster License Practice Exam

What is a "friendly fire" in the context of property insurance?

1. A fire that is accidental.

2. A fire that spreads outside its intended limits.

3. A fire that is intentionally set and remains within its intended limits.

4. A fire caused by negligence.

The correct answer is: A fire that is intentionally set and remains within its intended limits.

In the context of property insurance, "friendly fire" refers to a fire that is intentionally set and remains within its intended limits. This concept often arises in discussions about controlled burns or other situations where an individual or organization sets a fire with the clear intent of containing it to a specific area for a legitimate purpose, such as land management or agricultural practices. For example, a landowner may conduct a controlled burn to clear brush or to promote new growth, with precautions in place to ensure the fire does not spread beyond designated boundaries. In this scenario, the fire is considered "friendly" because it is managed and does not pose an immediate threat to surrounding properties or people, as opposed to an uncontrolled fire that can become a hazard. Understanding the definition of "friendly fire" helps clarify how property insurance might respond to various incidents involving fire. Such controlled fires can still be subject to specific terms within insurance policies, and distinguishing between friendly and hostile fires can impact coverage decisions and liability considerations.