Terms

Question 1

The voluntary relinquishment of a known right

Answer 1

Waiver

Question 2

The involuntary relinquishment. If the agent says it’s covered it’s covered

Answer 2

Estoppel

Question 3

A written condition in the policy that must be true at the time of the loss

Answer 3

Warranties

Question 4

Insured or prospect deliberately withholds material information from the insurer; this voids coverage

Answer 4

Concealment

Question 5

Insured or prospect giving incorrect material information to the insurer; this voids coverage

Answer 5

Material misrepresentation

Question 6

The principle to restore the insured to the pre-loss economic or financial condition

Answer 6

Indemnity

Question 7

The maximum amount that can be paid for covered loss

Answer 7

Limit of liability

Question 8

Proof that someone stands to lose financially if a loss occurs; must exist at the time of the loss in property and casualty insurance

Answer 8

Insurance interest

Question 9

Attitude or carelessness or indifference to loss

Answer 9

Morale hazard

Question 10

Declarations

Answer 10

Premium
Limits of liability 
Deductible
Lien holder policy 
Named insured 
Property description

Question 11

Conditions

Answer 11

Territory 
Insureds duties 
Subrogation rights
Pro data liability clause  
Assignment 
Insurers duties

Question 12

Exclusions

Answer 12

Property no covered

Perils not covered

Question 13

Nothing the insured does, not even dishonestly, can prevent_____ from collecting under the policy

Answer 13

Mortgagee

Question 14

Blanket

Answer 14

If an apartment complex with multiple building is written with a single amount of insurance, it is said to be written on a blanket form

Question 15

Liability

Answer 15

Is the legal obligation to pay for damages caused to another

Question 16

If the insurer does not abide by the terms and spirit of the policy, the court My consider this to be a breach on contract and award monetary damages to the insured.

Involves duties owed to the other parties

Answer 16

Bad faith

Question 17

Conditional contract

Answer 17

Thee contract may be voided if app policy conditions are not met

Question 18

Contract of adhesion

Answer 18

This is a contract degree by the insurer in which all parties must agree

Question 19

Aleatory

Answer 19

This is the contract in which the values exchanged are not equal

Question 20

Misrepresentation

Answer 20

Does not affect coverage of providing incorrect information

Question 21

Deductibles

Answer 21

Amount of loss the insured agrees to assume before the policy limits are paid

Question 22

Subrogation

Answer 22

The rights of the insurer, who hA settled the insureds loss,to recover from an at fault third party

Question 23

Cancelation clause

Answer 23

Pro rata refund provided if cancelled by the insurer

Question 24

Pro rata liability clause

Answer 24

This is used when one or more insurance policies provides coverage on the same property

Question 25

Primary policy

Answer 25

When multiple policies cover the loss

Question 26

Excess policy

Answer 26

When multiple policies cover the loss, the excess policy is used to pay after the primary coverage has been exhausted

Question 27

Suing

Answer 27

Must be started within 2 years and one day

Question 28

The principle that states that an insured should be restored after a loss to approximately the same financial position as before the loss is known as?

Answer 28

Indemnity

Question 29

An insurance policy is prepared by the insurance company, with little or no input from the insured. This means that an insurance policy is?

Answer 29

An adhesion contract

Question 30

In liability policies, supplementary payments are

Answer 30

Payable in addition to the policy limit of liability

Question 31

All of the following are common supplementary payments provides by liability insurance policies EXCEPT

Answer 31

Defense cost subject to 10% of the applicable policy limit

Question 32

Standard fire policy

Answer 32

``` Fire Lightening Removal Civil commotion Riot Explosion Hail Windstorm ```

Question 33

Standard fire policy

Answer 33

Does not cover vandalism more than 30 consecutive days

Question 34

Covered building is vacant

Answer 34

60 consecutive days

Question 35

The blank can not abandon partially damaged property to the insurance company and demand payment for total loss

Answer 35

Insured

Question 36

Coinsurance formula

Answer 36

Insurance carried/ insurance required *loss

Question 37

Property damage

Answer 37

Damage caused by the loss of property including loss of use owed by someone other than the insured

Question 38

Personal injury

Answer 38

Damages caused by libel slander invasion of privacy and other torts

Question 39

Actual loss

Answer 39

An actual injury or property damage must occur

Question 40

Proximate cause

Answer 40

Drunk driver runs a sign and injured pedestrian

Question 41

Liability coverage | Aggregate limit 100/300

Answer 41

100,000 occurrence and 300,000 per policy period

Question 42

How will claimant be handled if a dwelling is insured to at least 80 percent of its value?

Answer 42

Replacement cost

Question 43

Which of the following statements about the standard mortgage clause is correct?

Answer 43

Nothing the insured does can prevent the mortgagee from collecting

Question 44

All of the following accurately describe comparative negligence EXCEPT?

Answer 44

Both parties contribute equally to the loss

Question 45

Which is a liability loss?

Answer 45

A fire that was caused by the insured negligence burns a neighboring building. The owner sued the insured

Question 46

Denial coverage

Answer 46

When the claims investigation reveals that the insurer is not a liable party

Question 47

Total

Answer 47

Cost to repair is greater than the value of the property pre loss value

Question 48

Valued policy

Answer 48

Pays the face amount of the policy in the Event of a total loss

Question 49

Replacement cost

Answer 49

Provides a settlement to the insured to replace property with property of like kind and quality

Question 50

Release

Answer 50

A contractual agreement stating that after the claimant has been paid for a loss, he cannot collect addition damages arising from the loss

Question 51

Arbitration involves

Answer 51

Involves coverage issues

Question 52

Subrogation

Answer 52

Which of the following legal principles allows insurance companies to collect from a negligent third party damage

Question 53

Surety

Answer 53

Pays the losses under a bond contract

Question 54

Which of the following losses would be paid under the business auto coverage forms comprehensive coverage

Answer 54

A covered auto is stolen and never recovered

Question 55

Which one of the following covered a carried for liability for loss to cargo while it being transported In a truck

Answer 55

Motor truck cargo policy

Question 56

Trailer interchange coverage is a part of

Answer 56

The Tucker’s coverage form and motor carrier coverage form

Question 57

The business owners policy

Answer 57

Provides a prepackaged policy of property and liability coverage for certain types of small businesses

Question 58

The owner of an auto dealership wants coverage for her liability for damage to vehicles left in the dealership service department

Answer 58

Garage keepers coverage

Question 59

The insured lefty’s bar wants coverage for liability arising out of selling and serving alcoholic beverages.

Answer 59

A liquor liability coverage form

Question 60

Under the CGL coverage form liability assumed under contract is

Answer 60

Excluded except for contracts specifically defined as insured

Question 61

The aggregate limit of the commercial general liability policy is the most the insurer will pay per?

Answer 61

Policy period regardless of the number of claimed filed

Question 62

Business auto policy

Answer 62

Provides protection for risk exposure arising out of the use of an automobile for commercial or business use

Question 63

The cause of loss special dorm of the commercial property coverage part insured against

Answer 63

All risk of direct physical loss unless specifically excluded

Question 64

Business wants property insurance for a new warehouse it is building. Business wants the policy limit of insurance to gradually increase as the value of the building under construction increases

Answer 64

Builders risk reporting form

Question 65

Under the commercial property coverage part, the cause of loss briar form insured against

Answer 65

The perils in the cause of loss and basic form and additional perils

Question 66

The primary purpose of the business income coverage form is to reimburse the insurer for

Answer 66

Loss of income resulting from property damage at the insurers property

Question 67

Which of the following is a coverage extensions that’s is available in the building and personal property coverage form

Answer 67

Property off premises

Question 68

Truckers cargo form

Answer 68

This insured the liability of the carrier for damage or transported property of others

Question 69

Commercial package policy CPP

Answer 69

Any business is eligible for it. Combines two or more separate coverages into one insuring contract

Question 70

Extra expense

Answer 70

Any expenses incurred to minimize the suspension of business and continue operations

Question 71

What endorsement is used to provide open perils coverage on a specific expensive piece of personal property

Answer 71

Scheduled personal property

Question 72

Special limits per occurrences

Answer 72

``` Money $200 Watercraft etc $1500 Theft of jewelry furs $1500 Theft guns $2500 Property $500 Business property $2500 ```

Question 73

Under Texas personal injury protect (pip) coverage the injured first party to an auto accident

Answer 73

Reimbursed by his own insurance company