Property and Casualty Flashcards
What should the mortgagee do if the insured fails to submit a proof of loss form?
File a proof of loss form.
What is the limit that the mortgagee can recover?
The balance owed on the mortgage debt.
Who selects an appraiser under the appraisal provision?
Each party.
The insured cancels a policy halfway through its term yet receives less than a 50% refund. This is:
Short-rate refund
A business losing money due to a fire is what?
An indirect loss
An application says no fire wood will be stored on the premises. If a later fire is caused by fire wood stored on the premises, the insurer may refuse coverage if the insured
Misrepresented material fact.
Can a policy be voided if proof of loss form is not filed?
no
Q sold a building but did not cancel the policy. The building was later destroyed by a covered peril. Q will not collect under the policy due to:
Lack of insurable interest
What decreases the insurer’s loss?
A deductible
Consideration is evidenced by
Paying a premium
The insurer’s exposure under a policy is restricted by:
the Limit of Liability.
Which section of the policy contains the Insured’s right to bring legal action against the Insurer?
Conditions
Which insured person controls the policy?
The first-named
The proximate cause of the loss is a
Peril
Which section of the policy requires the Insurer to provide coverage?
Insuring Agreements
The conditions section of the policy contains:
the insured’s obligations if a loss occurs
Which section of a Special form policy determines whether a peril is covered?
Exclusions
To prevent recovery beyond the amount of the insured’s actual loss, the policy will contain:
an Other Insurance Clause
Which section of a property policy requires the Insured to submit a sworn proof of loss form?
Conditions
A promise by the insured that certain future conditions will exist is a?
Warranty
Which section of the policy contains the Insurer’s obligation to repair, replace or pay?
Insuring agreements
Which section of the policy contains the cancellation provisions?
Conditions
One who can lose financially in the event of a loss has:
Insurable interest
Which section of the policy contains the covered perils?
Insuring agreements
If your building is destroyed by fire, you must notify the Insurer:
Promptly
Liability insurance is a:
two-party contract with payment to a third party.
Uncertainty of future outcomes is:
Risk
If the Insured tries to turn partially or totally destroyed property over to the Insurer while demanding full payment is, this could be construed as the Insured’s illegal attempt at:
Abandonment
Negligence is determined by:
how a reasonable person would have acted under the circumstances
The rules of conduct between the Insurer and Insured are set forth in which section of the policy?
Conditions
What does the mortgage clause do?
Grants the mortgagee specific rights not granted to the Insured
There is no negligence without what?
Injury or damage
A person with an alleged injury notifies a Producer that the Producer’s client negligently caused the injury. The producer should first notify the:
The insurer
The limit payable for all losses in a policy year is the:
Aggregate limit
A store owner is held liable when a store employee carelessly drops a box on a customer’s foot. This is an example of what?
Vicarious liability
The burden of proving a loss rests on the:
The insured
Nonrenewal requires the Insurer to:
mail notice to the insured in advance.
Which of the following is considered to be a “participating” Insurer?
A mutual insurer
“Acts of God” are best covered by:
Special form
To guarantee that depreciation will not be a factor in calculating the amount to be paid at the time of a loss, an Insured should purchase:
Replacement cost
The mortgagee should receive how much notice of cancellation?
10 days
A consequential loss is:
an indirect loss
What forms cover glass breakage
Broad and special
In addition to requiring that Insurers protect clients’ privacy rights, the Gramm-Leach-Bliley Act:
encourages the states to adopt uniform licensing requirements to make it easier for Producers to sell insurance across state lines.
The Actual Cash Value formula is:
Replacement cost minus physical depreciation
An assignment must be:
agreed to in writing by the insurer.
To avoid the concentration of insurance risks, an insurer should:
spread the risk
Binders must have:
Name of insurer and insured, date effective, list of covered items
Using a disinterested third party to resolve a claim dispute is:
Arbitration
The applicant believes the statement to be true with a/an?
Representation
An Insurer’s required assignment of rights of recovery after paying a claim is:
Subrogation
