Section 1: lesson 7.2 More Property Insurance Concepts & Doctrines Flashcards
Stans homeowner’s policy comes with deductible amount that is 2% of the coverage limit. What kind of deductible is this?
Percentage deductible
If Stan’s dwelling deductible is 2% of this coverage A limit of $175,000, what is the deductible?
$3500> $175000 x 2%
Margret’s automobile policy has no specific limit for collision or comp coverage, but comes with a deductible of $500 for collision and comp Coverage. What kind of deductible is this?
Straight deductible
A serve thunderstorm causes roof damage to Phils dwelling and a workshop located at the rear of this lot. The cost to repair his dwelling roof is $5000 and the cost to reroof his workshop if $1500. His Coverage A deductible is $1500. How much will Phil receive from his insurance company for each building?
$3500 for the dwelling and $1500 for the workshop
A severe summer thunderstorm caused $450 in damage to a policyholder’s roof, and the policyholder has a $1000 deductible, how much would the policyholder receive in settlement of his claim?
There would be no payment because the loss is less than the deductible.
John’s home suffers severe damage from a tropical storm. You inspect his home and your appraisal of damage and cost to repair the dwelling totals $51,400.00 When John receives his chem, it is made out joint to him and his mortgage company, Bank of America. He is angered by this and calls you to request a new check made payable to him only. What is your response?
You explain to John that the conditioning this insurance policy requires you to protect the ender’s interests and as long as there is an outstanding mortgage on the home you have tout the mortgagee’s name on the phone check.
Janes insurance policy provides coverage that values losses at the cost to repair or replace a damaged or destroyed item of property with one of like kind and quality at today’s prices. What kind of coverage is this?
Replacement Cost coverage
Bills homeowner policy provides the kind of coverage that values losses at replacement cost less depreciation. What kind of coverage is this?
Actual Cash value coverage
Adjuster appraised loss at $13500, reduced the loss by $3000 in depreciation, applied her deductible, and paid her $10,000. Assuming the she replaces al of her damaged property and spends $12,755. how much will she receive?
$2,755> $12,755-$10,000
Texas is considered a “holdback state”, what does that mean:
Property(dwelling and personal property) losses are initially paid based on Actual cash value. After the property’s is repaired or replaced, a final payment is made for the remaining difference in RCV less ACV.
A homeowner insures a rare gun under valued policy agreement for $150,000. It is subsequently lost a fire. The homeowner secures an appraisal of the gun at the time of its loss as $250,000. How much will the homeowner receive?
$150,000( the amount of the policy)
A couple lives in a state that has a valued policy law for all perils. they have insured their home for $150,000. A fire ensues and gust their home , resulting in a total loss. An appraisal of the home prior to the loss results in a value of $120,000, yet the adjuster is required by law to pay the couple $150,000. This is known as the application of:
The valued policy law
Jackson owns a home in Galveston that is insured with Coverage A limits of $500,000 and has deductible of $10,000. A hurricane totally destroys the home and replacement costs appraisal of its value tops out at only $375,000 due to recent market declines in real estate. How much can Jackson expect to collect from the insurer under the dwelling coverage?
$365,000> $375,000-$10,000
Why was Jackson only paid $375,000 instead of $500,000 for his total loss on his home according to value policy law?
Texas is a valued policy state only for the peril of fire.
Texas valued policy law, referred to in Texas as a liquidated damages” law, applies only to
Real property only
