Chapter 4

Question 1

Clean water

Answer 1

water that comes from pipes, sinks, or bathtubs, or that leaks through a broken window or roof.

Question 2

Gray water

Answer 2

water that comes from a dishwasher rinse cycle, a washing machine, a toilet, and aquarium, or a stagnant pool of water.

Question 3

Black water

Answer 3

water that is filled with bacteria; sources include sewage, seawater, and water that has flowed over organic materials.

Question 4

Catastrophe

Answer 4

a single event that causes widespread losses.

Question 5

Promissory warranty

Answer 5

a policy provision in which the assured guarantees or negates the existence of a fact or state of facts at policy inception or promises that something will be done, or will not be done, during the policy.

Question 6

Fraud

Answer 6

An intentional misrepresentation resulting in harm to a person or an organization.

Question 7

Concealment

Answer 7

An intentional failure to disclose a material fact.

Question 8

Misrepresentation

Answer 8

A false statement of a material fact on which a party relies.

Question 9

Hard fraud

Answer 9

Actions that are undertaken deliberately to defraud.

Question 10

Soft fraud, or opportunity fraud

Answer 10

Fraud that occurs when a legitimate claim is exaggerated.

Question 11

National flood insurance program

Answer 11

A government-sponsored flood insurance program for a communities in designated areas.