Terms & Concepts

Question 1

Peril

Answer 1

Cause of a loss

Question 2

Named Peril

Answer 2

Peril covered are listed (Comp)

Question 3

Open Peril

Answer 3

Covers all perils

Question 4

Specific Coverage

Answer 4

Covers one kind of property (antique)

Question 5

Blanket Coverage

Answer 5

More than one type of property in same location, same type in 2+ locations, 2+ types in 2+ locations

Question 6

Functional Replacement Cost

Answer 6

Cost to put building back into functional condition

Question 7

Mortgagee

Answer 7

Person or lender who provided loan to buy property

Question 8

Loss Payee

Answer 8

Person or entity listed on insurance documents to which check is issued for damages

Question 9

Breach of Warranty

Answer 9

Violation of an agreement between seller and buyer in reference to the condition, content, quality or title of an item sold

Question 10

Aggregate Limit

Answer 10

Max dollar amount of coverage as a total limit for the lifetime of the policy

Question 11

Binder

Answer 11

Temporary insurance contract providing coverage until permanent policy is issued. *Good for 60 days

Question 12

Liberation Clause

Answer 12

Stipulates that if the state legislature or state reg office expands the coverage of an insurance policy or endorsement forms without increase of premium

Question 13

Monoline Policies

Answer 13

Cover only one risk (property)

Question 14

Package Policies

Answer 14

Cover 2+ (Property and Lib)

Question 15

Major Parts of a Policy (5)

Answer 15

-Dec Page
-Insuring Agreement
-Conditions
-Exclusions
-Definations

Question 16

Direct Loss

Answer 16

Loss via unbroken chain of events from a covered cause of loss