Terms and Definitions

Question 1

What is actual cash value? How does it differ from replacement cost?

Question 2

What is an appraisal?

Question 3

What is meant by the term ‘‘cancellation’’?

Question 4

What is a contract?

Question 5

When does a constructive total loss exist?

Question 6

What is meant by the term ‘‘coverage’’ ?

Question 7

What is a deductible ?

Question 8

What is the difference between ‘‘direct loss’’ and ‘‘indirect loss’’ ?

Question 9

What is the purpose of an endorsement?

Question 10

What does an endorsement do?

Question 11

Who requires errors and omissions insurance?

Question 12

What is the role and responsibilities of a fiduciary?

Question 13

Explain the principle of indemnity.

Question 14

Who has insurable interest?

Question 15

Define ‘‘insurance’’;.

Question 16

What is the difference between ‘‘an insurer’’ and ‘‘an insured’’ ?

Question 17

Fro where does legal liability arise?

Question 18

What separates a ‘‘material fact’’ from an ‘‘ordinary fact’’ ?

Question 19

How does ‘‘misrepresentation’’ occur?

Question 20

Explain the term ‘‘negligence’’ in your own words.

Question 21

An event that causes a loss covered by the policy is called a ________. Give an example.

Question 22

To whom is a premium paid? Why ?

Question 23

Define ‘‘risk’’.

Question 24

What is ‘‘salvage’’ ?