Chapter 14

Question 1

Insurer

Answer 1

the insurance company that provides the insurance coverage to the owner of the property or other parties who may have an insurable interest in the property

Question 2

Insured

Answer 2

the person who benefits from the insurance coverage provided by the insurer

Question 3

Property/Hazard Insurance

Answer 3

insurance that provides coverage to the basic structure of the property

Question 4

Peril

Answer 4

an insured hazard or risk of loss

Question 5

liability insurance

Answer 5

provides coverage for the financial claims of others

Question 6

package policy

Answer 6

combines insurance coverage for the two major elements of property and liability

Question 7

homeowner’s policy

Answer 7

provides coverage for the structure and contents of the property owner and coverage against a variety of hazards

Question 8

endorsements/rider

Answer 8

additions to the general policy that increase the number of perils covered by the policy

Question 9

condition

Answer 9

limits the coverage of a specified property

Question 10

exclusion

Answer 10

something that is not covered for loss in an insurance policy

Question 11

insurable interest

Answer 11

legitimate financial interest in the property