CPCU 553 Ch. 6

Question 1

A person or business who is not a party to the insurance contract but who asserts a claim against the insured

Answer 1

Third party

Question 2

Physical injury to a person, including sickness, disease, and death

Answer 2

Bodily injury

Question 3

Physical injury to, destruction of, or loss of use of tangible property

Answer 3

Property damage

Question 4

An accident, including continuous or repeated exposure to substantially the same general harmful condition

Answer 4

Occurrence

Question 5

A charge by the condominium association against the unit owners for the cost of uninsured losses

Answer 5

Loss assessment

Question 6

Policy condition that applies insurance separately to each insured; does not increase the insurer’s limit of liability for any one occurrence

Answer 6

Sever-ability of insurance condition

Question 7

The intentional relinquishment of a known right

Answer 7

Waiver

Question 8

A third party’s reasonable belief that an agent has authority to act on the principle’s behalf

Answer 8

Apparent authority

Question 9

An insurance agent’s authority to effect coverage on behalf of the insurer

Answer 9

Binding authority

Question 10

A real estate development consisting of a group of units, in which the air space within the boundaries of each unit is owned by the unit owner, and all remaining real and personal property is owned jointly by all the unit owners

Answer 10

Condominium

Question 11

A form of real property ownership in which the real property is owned by a corporation whose shareholders are the tenants of the property

Answer 11

Cooperative corporation

Question 12

Insurance for property specifically listed (scheduled) on a policy, with a limit of liability for each item

Answer 12

Scheduled coverage