Common Property & Casualty Policy Provisions

Question 1

Appraisal

Answer 1

Used when there is a disagreement between the insurer and insured on the value of any property loss.

Question 2

Arbitration

Answer 2

Utilized when the insurer and the insured do not agree on how to settle a claim; sent to one or more arbitrators

Question 3

Cancellation

Answer 3

Termination of a policy by either the insurer or insured prior to the expiration date shown on policy

Question 4

Loss Settlement

Answer 4

Under a professional liability policy, the insurance provider must gain the insured’s consent before settling claim.

Question 5

Mortgagee Clause

Answer 5

Attached to a policy to protect the interest of the mortgagee in the mortgaged property.

Question 6

Nonrenewal

Answer 6

Termination of an insurance policy at its expiration date by not offering a replacement policy or continuation of the existing policy

Question 7

Notice of Claim

Answer 7

Statement or form from an insured to an insurer, informing the insurer that events leading to a possible claim have taken place. The form includes when, how, and where the loss took place.

Question 8

Other Insurance

Answer 8

Defines the way in which a policy will respond if there other valid insurance written on the same risk.

Question 9

Pro Rata

Answer 9

Provides for the sharing of loss with other insurance

Question 10

Proof of Loss

Answer 10

Sworn statement that must typically be provided by the insured to an insurer before any loss under a policy can be paid

Question 11

Assignment

Answer 11

Transfer of a legal interest or right in an insurance policy. Valid only with prior written consent.