Module 3 Flashcards
The liability portion of home or automobile insurance is an example of which type of coverage?
a) Third Party Coverage
b) First Party Coverage
a) Third Party Coverage
Check the 4 that apply. What 4 sections are typically included in a property insurance policy?
a) Property coverages
b) Perils insured against
c) Conditions
d) Exclusions
e) Biographical information about the property owners
a) Property coverages
b) Perils insured against
c) exclusions
d) conditions
Check all that apply. A policy that covers only damage to insured property that is caused by specific risks named in the policy can be referred to as a:
a) All Risk Policy
b) Specified Risk Policy
c) Open Peril Policy
d) Named Peril Policy
b) Specified Risk Policy
d) Named Peril Policy
This is an example of a named peril policy which is also referred to as a specified risk policy.
The Principle of Indemnity is a concept that says that an insurance contract shall confer a benefit of equal or greater value than the loss suffered. True or False?
False. The Principle of Indemnity says that an insurance contract shall confer a benefit of NO greater value than the loss suffered.
There are 4 tests for insurable interest. Which test applies most in the Gusset case?
a) A contract right to property
b) A factual expectancy
c) A legal or equitable interest in property
d) Potential to suffer legal. liability for the destruction of property
b) a factual expectancy
The case we looked at in the lecture that exposes us to “trigger and occurrence problems” is:
a) Port Authority of NY and NJ v. Affiliated FM Ins. Co.
b) Duane Reade v. St. Paul Fire & Marine
c) Chute v. North River Ins. Co.
d) Rosen v. State Farm
a) Port Authority of NY and NJ v. affiliated FM Ins. Co.
The issue in the Duane Reade case is “is the plaintiff entitled to recover on the all risk policy?” True or False?
False. This is the issue in the Chute v. North River Ins. Co. case
In the Rosen v. State Farm case, the plaintiff wants State Farm to pay for the cost of replacing two decks attached to his home that have collapsed. True or False?
False. In the Rosen v. State Farm case, the plaintiff wants State Farm to pay for the cost of replacing two decks attached to his home that are in a state of imminent collapse.
The issue in the State Farm v. Bongen case is:
a) Who bears the burden of proof and how is that burden allocated when the policy contains both named and open perils?
b) Is the policy intended to provide coverage for all accidental damages caused by a covered event?
c) Can the insurer refuse coverage when loss is caused by both a covered and excluded risk?
c) Can the insurer refuse coverage when loss is caused by both a covered and excluded risk?
In the Langill v. Vermont Mutual Ins. Co. case, the insurer is relying on the “vacancy exclusion” to deny coverage for fire damage to the rental property? True or False?
True
In the Great Northern Oil Co. v. St. Paul Fire & Marine Insurance case, the insured released the contractor AFTER the loss therefore voiding the insurance coverage. True or False?
False. The insured released the contractor PRIOR to the loss which does not void the insurance coverage.
The first general subrogation rule is:
a) An insurer can subrogate against its own insured.
b) An insurer may not subrogate against its own insured.
b) An insurer MAY NOT subrogate against its own insured
In the Folger Coffee Co. v. Great American Insurance case, the court held that the bailee’s insurer must pay proceeds to the bailor. True or False?
True. The court held that the bailee’s insurer must pay proceeds to the bailor give the policy language.
