Chapter 12

Question 1

Property Insurance

Answer 1

Provides protection against most risks to property, such as fire, theft and some weather damage.

Question 2

Package Policy

Answer 2

Insurance policy that combines coverage from two or more types of insurance (such as property and liability) into one policy.

Question 3

Liability Insurance

Answer 3

Policy that covers civil liabilities to third parties, arising from bodily injury, property damage, or other wrongs due to the action or inaction of the insured.

Question 4

Actual Cash Value

Answer 4

A method of valuing insured property.

Question 5

Replacement Cost

Answer 5

Normal cost of exact duplication of a property as of a certain date.

Question 6

Umbrella Policy

Answer 6

Insurance policy that covers amounts above those covered under one or more other primary policies, and which does not pay until the losses exceed a certain sum. Also called excess insurance.

Question 7

Monoline Policy

Answer 7

A policy containing a single coverage part plus the common policy conditions and common declarations.

Question 8

Deductible

Answer 8

The amount of expenses that must be paid out of pocket before an insurer will pay any expenses.