Study 6

Question 1

An agreement signed by the policyholder after a loss, agreeing that the investigation and determination of the amount of damage by the insurance company shall not be construed as an admission of liability. It is used when the insured is in violation of a policy condition and there is a question as to whether or not the company is liable for a loss but it wishes to investigate the loss and determine the amount of damage.

Answer 1

non-waiver agreement

Question 2

An insurer’s notification to an insured that coverage for a claim may not apply. Such notification allows an insurer to investigate (or even defend) a claim to determine whether coverage applies (in whole or in part) without waiving its right to later deny coverage based on information revealed by the investigation. In reserving its rights to later deny coverage, the insurer is merely telling the insured of its concerns that the claim, in whole or in part, may not be covered under the policy, pending further investigation.

Answer 2

reservation of rights letter

Question 3

(1) The destruction of evidence. (2) The alteration of a policy by a party other than the insurer or the insured without consent.

Answer 3

spoliation

Question 4

Someone connected to a court of law who can be hired by an insurer or an insured to appear in court as a witness. This expert combines knowledge of legal cases with the principles of a profession. The expert can help to prove or contradict the cause of a claim.

Answer 4

forensic expert