Provisions and Clauses

Question 1

What is the transfer of a legal right or interest in an insurance policy?

Answer 1

Assignment

Question 2

Appraisal

Answer 2

Either party can make a written demand for an appraisal if there is a disagreement between the insured and the insurer.

Question 3

Arbitration

Answer 3

A method of casualty claim settlement used when the insured and insurer cannot agree on how to settle a claim.

Question 4

Other Insurance

Answer 4

A Provision in an insurance policy that defines how the policy will respond if there is other valid insurance written on the same risk.

Question 5

Pro Rata

Answer 5

Provides sharing of loss with other insurance that may be written on the same risk in the same proportion as their limits of insurance bear to the total of coverage.
-Basically two insurance policies paying one claim

Question 6

Notice of claim

Answer 6

A form or statement from an insured to an insurer informing the insurer that events leading to a possible claim have occurred.

Question 7

Proof of Loss

Answer 7

A sworn statement that must usually be furnished by the insured to an insurer before any loss under a policy can be paid.

Question 8

Loss Settlement

Answer 8

When a claim is filed under a professional liability policy, the insurer can only settle the claim by offering to pay the claimant with the consent of the insured.

Question 9

Nonrenewal

Answer 9

Termination of an insurance policy at its expiration date

Question 10

Mortgagee Rights
Mortgage clause
Real Property
Personal Property

Answer 10

Look up on youtube