*4 TB - Insurance Concepts & Principles Flashcards
An insured has suffered a fire loss to his/her dwelling. The insured is which party to the claim?
Third Party
First Party
Second Party
Loss Payee
First party!
Methods of risk management include:
Transfer
Sharing
Avoidance
All of the above
ALL OF THE ABOVE
Mr. Jones a pedestrian was injured by Mr. smith while driving his vehicle. Mr. smith is insured by I Am Bogus Insurance Company. The insurance company would be which party to the claim?
First party since they are the one that has to pay
The second party
The third party
Guarantor
The Second Party!
The insurance company is always the second party!
Which of the following is NOT included in the Declarations section of an insurance contract?
The identity of the insured
The policy period
The covered perils
The policy premium
The covered perils!
The covered perils are contained in the insuring agreement and do not appear on the declarations page
Which of the following is the section of an insurance contract that contains the provisions, rules of conduct, duties, and obligations of the parties?
The Insuring Agreement
The Conditions
The Exclusions
The Limitations
The conditions!
A loss that is a direct consequence of a particular peril is called a(n):
Indirect loss
Peril
Hazard
Direct loss
Direct loss!
Which of the following is a clause in property and casualty which states that if policy or endorsement forms are broadened an no additional premium is required, then all existing similar policies or endorsements will be construed to include the broadened coverage?
Liberalization
Assignment
Binder
Coinsurance
Liberalization!!!
Which of the following provides written evidence of coverage pending the issuance of a policy?
Cause of Loss form
Assignment
Binder
Blanket coverage
Binder
Which of the following is an example of a Loss Evaluation Method?
Liberalization
Cause of Loss Form
Stated Amounts
Conditions
Stated Amount!
Some types of property are insured on a Stated Amount Basis, this is a value agreed upon by both parties
The cost of replacement minus deprecation is the definition of:
Valued Policy
Market Value
Replacement Cost
Actual Cash Value
Actual Cash Value
Which of the following is a method of requiring the insured to insure at least 80% of the value of the covered commercial property?
Cause of Loss Form
Standard Mortgage Clause
Loss Payable Clause
Coinsurance Clause
Coinsurance Clause
Which of the following is a basis for insuring property that allows the insured to report the value of the building contents to the insurance company on a monthly basis?
Blanket Basis
Reporting Form
Specific Basis
Agree Value
Reporting Form!
Which of the following is not a factor in determining negligence on the part of the insured?
Legal duty is owed
There is a breach of protection
Proximate cause
Damage
There is a breach of protection!
A breach of protection, failure to carry insurance is not a factor in determining
In liability insurance, policy limits that apply one limit to each person injured, another for bodily injury claims of all persons injured in a single accident, and a separate limit for all property damage arising out of a single accident is:
Aggregate Limits
Split limits
Single limit
Total limits
Split Limits!
An insurance contract that contingent on a certain event is referred to as?
Executory
Aleatory
Contractor adhesion
Conditional
Aleatory
