Property Flashcards
Reinsurance is best described as:
When the insurer purchases insurance on a risk that the insurer has provided coverage for
All of the following are indirect losses EXCEPT..
-Loss of Use
- Business income form
-replacement cost
- Extra expense form
Replacement cost
What form provides coverage until the application is rejected or the policy is issued
a BINDER
A sudden and unexpected event is best described as?
an ACCIDENT
Which of the following would be considered an occurrence?
-A contractor cuts the telephone line
- A truck hits a guardrail
- A customer slips on water in a store
-Factory smoke discolors the paint on the neighboring homes
Factory smoke discolors the paint on the neighboring homes
When there is a disagreement at the time of a claim, the process to handle this is called?
Appraisal
The insured’s duties would include?
-Immediate notice to the insurance company of a loss
- Protect property from future losses
-Forward all legal forms received to the insurer
What is subrogation?
The right of the insurer to recover a loss from a 3rd party
What are the rights of the mortgagee?
- Be listed on the policy
- Pay premiums due
-Be listed on any claims checks payable to the insured
A signed proof of loss must be filed with the insurer within?
60 days of the loss
A risk that involves a chance of both loss and gain is ?
A speculative risk
A risk that involves only the chance of a LOSS is ?
A pure risk
An insurer could deny payment of a claim if a dwelling has been vacant for more than ?
30 days
Ken’s business suffers a financial loss when his building is burned. He not only lost the building, he lost his income as well. In losing the building, Ken suffered what kind of loss?
Direct Loss
The clause that states “if property is covered by other fire insurance, this policy will pay only the proportion of a loss caused by any insured peril applying under this policy” is called ?
Other insurance
