CPCU 553 Ch. 3

Question 1

A person, corporation, partnership, or other entity identified as an insured party in an insurance policy’s declarations page

Answer 1

Named insured

Question 2

The time frame, beginning with the inception date, during which insurance coverage applies

Answer 2

Policy period

Question 3

A unique number that is assigned to each vehicle and that identifies certain vehicle characteristcs

Answer 3

Vehicle identification number (VIN)

Question 4

Coverage for direct and accidental loss or damage to a covered auto caused by collision with another object or by overturn

Answer 4

Collision coverage

Question 5

Coverage for physical damage to a covered auto resulting from any cause of loss except collision or a cause of loss specifically excluded

Answer 5

Other than collision (OTC) coverage

Question 6

A payment awarded by a court to reimburse a victim for actual harm

Answer 6

Compensatory damages

Question 7

Separate coverage limits that allow one limit for bodily injury to each person; a second, usually higher, limit for bodily injury to all persons in each accident; and third limit for all property damage in each accident

Answer 7

Split-limit basis

Question 8

One coverage limit that applies to all damages arising from bodily injury or property damage or both, resulting from a single accident

Answer 8

Single-limit basis

Question 9

Interest that may accrue on damages before a judgement has been rendered

Answer 9

Prejudgement interest

Question 10

Various expenses the insurer agrees to pay under a libability insurance policy (in addition to the liability limits) for items such as premiums on bail bonds and appeal bonds, loss of the insured’a earnings because of attendance at trials, and other reasonable expenses incurred by the insured at the insurer’s request

Answer 10

Supplementary payments

Question 11

The act of seizing property to secure a judgement

Answer 11

Attachment

Question 12

Interest that may accrue on damages after a judgement has been entered in a court and before the money is paid

Answer 12

Postjudgement interest

Question 13

In case law, a method of transportation that is indiscrimminately offered to the general public, such as taxi or public bus

Answer 13

Public or livery converyance

Question 14

A land motor vehicle or trailor that is not insured for bodily injury liability, is insured for less than the financial responsibility limits, is a hit and run vehicle, or whose insurer denies coverage or becomes insolvent

Answer 14

Uninsured motor vehicle

Question 15

An alternative dispute resolution (ADR) method by which disputing parties use a neutral outside party to examine the issues and develop a settlement, which can be final and binding

Answer 15

Arbitration