Assignment 5

Question 1

Physical damage coverages

Answer 1

There are four kinds:
Comprehensive - pays for loss to covered auto or its equipment from any cause not excluded, except collision or ooverturn
Specified causes of loss - provides named peril coverage
Collision - covers loss to a covered auto or its equipment by collision with another object or by overturn
Towing - provides coverage for towing and labor performed at the place of disablement

Question 2

Deductible

Answer 2

A portion of a covered loss that is not paid by the insurer

Question 3

Transportation expenses

Answer 3

Coverage extension for substitute transportation costs incurred when a private passenger type auto has been stolen.

Question 4

Appraisal

Answer 4

A method of resolving disputes between insurers and insureds over the amount owed on a covered loss.

Question 5

Proof of loss

Answer 5

A statement of facts about a loss for which the insured is making a claim.

Question 6

Liberalization clause

Answer 6

A policy condition providing that if a policy form is broadened at no additional premium, the broadened coverage automatically applies to all existing policies of the same type.

Question 7

Policy termination

Answer 7

The ending of the contractual relationship between the insured and insurer by cancellation, expiration, or nonrenewal.

Question 8

Cancellation

Answer 8

Termination of a policy, by either the insurer or the insured, during the policy term.