Personal Lines Flashcards
The process of determining the premium charged and how much insurance is required for a particular loss is called:
A. Agreed value
B. Loss Payment
C. Coinsurance
D. Loss valuation
D. Loss valuation
For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become:
A. More active
B. Larger
C. Smaller
D. Older
B. Larger
Law of Large Numbers
All of the following are true reguarding deposit premium EXCEPT:
A. It could be adjusted by the audit
B. It must be paid in advance
C. It is and estimated premium paid at the policy issue
D. It is 50% of the actual premium
D. It is 50%of the actual premium
(Deposit premium is an estimated premium paid in advance at the time the policy is issued that may be adjusted based on actual exposures. the actual premium can be determined by the audit of the insured’s records at the end of the insuring period.)
The section of a insurance policy that establishes the obligation of the insurance company to provide the insurance coverages as stated in the policy.
Insuring Agreement
Which of the following other coverages is NOT included in the basic form dwelling policy?
A. Personal property temporarily away from the insured premises
B. Tenant’s improvements, alterations, and additions
C. Breakage of glass
D. Removal coverage
C. Breakage of glass
basic dwelling-DP-1- only covers the basic perils REVSHAW
First aid costs for others injured on the insured premises:
A. Apply only if the insured is legally liable
B. Also cover injuries to the insureds family members
C. Are deducted form the liability limit
D. Are paid in addition to the liability limit
D. Are paid in addition to the liability limit
(Claims expense, first aid to others, damage to the property of others, loss assessment coverage as paid in addition to liability in homeowners policies)
An insured has a homewoners policy and is required to be a member of the homeowners association in her neighborhood. The association’s community house has burned down, and the insured has been assessed $1200 for her share of the rebuilding cost. How much of the assessment will her homeowners policy pay?
A. $1000
B. $500
C. None
D. $1200
A. $1000
( Loss assessment will pay up to $1000 for the insureds share of loss assessment charged during the policy period against the insured as owner or tenant of the residence premises by a corporation or association of property owners.)
A Write Your Own (WYO) flood program is made up of ________ that write and service National Flood Insurance policies on a no risk-bearing bases through a special arrangement with the Federal Insurance Administration.
Private Insurers
Removal Coverage under a standard fire policy remains in effect for
A. 10 days
B. 30 days
c. 15 days
D. 5 days
D. 5 days
replacement cost coverage is provided in both the broad and special form dwelling policies when:
A. The amount of insurance on the dwelling is at least 90% of its replacment cost when the policy is written
B. The dwelling is insured for 100% of its replacement cost at the time of the loss.
C. The amount of insurance on the dwelling is at least 80% of its replacement cost at the time of loss.
D. The amount of insurance on both the dwelling and personal property is at least 80% of its replacement cost when the policy is written.
C. The amount of insurance on the dwelling is at least 80% of its replacement cost at the time of loss.
The standard waiting period after the application has been accepted before flood coverage is effective is ____ days, EXCEPT if the community enters the emergency programs then coverage begins at _______,
or at _____ after endorsement request and premium have been mailed for an existing policy.
30 days
12: 01 am the next day
12: 01 am on the 5th day
In a personal auto policy, the medical payments coverage is similar to:
Accident insurance because it pays medical expenses regardless of fault.
What is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsement?
$25
A common exclusion found under physical damage to your auto includes:
A. Riot or civil commotion
B. Towing and labor
C. Mechanical breakdown
D. Glass breakage
C. Mechanical breakdown
Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called?
A. Misrepresentation
B. Adverse selection
C. Discrimination
D. Law of large numbers
D. Discrimination
