Chapter 1 Section 2 Part 6

Question 1

What is the requirement - when a contract of insurance - contains any clause - which allowed the insurer - to pay an amount - which is less than that - purchased by the insured?

Answer 1

“this policy contains a clause(s) that may limit the amount payable.”

printed, stamped on face in red ink

Question 2

two types of “Limitation Clauses”

Answer 2

Deductible

Co-Insurance

Question 3

Your client has a building valued at $300k and insured for $120k. Assuming a (partial) loss of $60k and an 80% Co-Insurance Clause, calculate the loss payment.

Answer 3

Question 4

Your client has a building valued at $300k and insured for $120k. Assuming a total loss and an 80% Co-Insurance Clause, calculate the loss payment

Answer 4

Question 5

explain “subrogation” (+example)

Answer 5

• when property is lost because of others, the insured has a right to take action and be compensated
• they allow the insurance company to take action in their place
• putting them “in their shoes”

Question 6

Who can make changes to an insurance policy?

Answer 6

Person authorized for purpose by insurer (not broker, usually insurance company underwriters)