Chapter 5 Flashcards
1
Q
What is a condition?
A
A requirement to do or not do something
2
Q
What happens when a warranty is breached?
A
The policy is void
3
Q
What is the point of a deductible?
A
To reduce the number of claims lodged
4
Q
What is the pair & set, or parts, rule?
A
The insurance company only pays for the lost part of a set, not the entire thing
5
Q
What are condition and warranty?
A
Condition: a requirement to do or not do something, pretty much just a rule
Warranty: Something that is true and will remain true for the entire policy period
