CPCU 553 Ch. 4

Question 1

There are four kinds; comprehensive - for loss to covered auto or its equipment from any cause not included; except collision or overturn; specified causes of loss - provides named peril coverage; collision - covers loss to a covered auto or its equipment by collision with another object or by overturn; and towing - provides coverage for towing and labor performed at the place of disablement

Answer 1

Physical damage coverage

Question 2

A portion of a covered loss that is not paid by the insurer

Answer 2

Deductible

Question 3

Additional coverage in the personal auto policy for substitute transportation costs incurred as the result of a covered physical damage loss

Answer 3

Transportation expenses

Question 4

Cost to replace property with new property with new property of like kind or quality less depreciation

Answer 4

Actual cash value (ACV)

Question 5

A method of resolving disputes between insurers and insureds over the amount owed on a covered loss

Answer 5

Appraisel

Question 6

A statement of facts about a loss for which the insured is making a claim

Answer 6

Proof of loss

Question 7

A policy condition providing that if a policy form is broadened at no additional premium, the broadened coverage automatically applies to all existing policies of the same type

Answer 7

Liberalization clause

Question 8

The ending of the contractual relationship between the insured and insurer by cancellation, expiration, or nonrenewal

Answer 8

Policy termination

Question 9

Termination of a policy, by either the insurer or the insured, during the policy term

Answer 9

Cancellation

Question 10

A company that uses a mobile application or website to connect riders with drivers and arrange transportation in a personal auto for a fee

Answer 10

Transportation network company

Question 11

Coverage that protects the insrued from damages owed because of legal liability to another party. For auto policies, it protects insureds against liability arising out of ownership or operation of automobiles

Answer 11

Liability coverage

Question 12

Coverage that pays necessary medical expenses incurred within a specified period by a claimant (and in certain policies, by an insured) for a covered injury, regardless of whether the insured was at fault

Answer 12

Medical payments coverage