Unit 4 Exam Flashcards
Appliances, clothing, tools, furniture, & electronics are examples of;
Personal property
The insured had a covered loss in which the replacement cost of the item is 5000; the current market value is $4500; depreciation is 2000 and the repair cost is 3500.00 How much will be paid on this claim if its settled on an actual cash value (ACV) basis?
3000
Bernie and his insurer came up with a price value of his grandfather’s baseball card collection that he now owns. If a loss occurs to this collection what will be the amount that the insurer will pay?
Agreed value
All of the following are examples of an indirect loss except? Cost of the rental after a car accident, living room furniture and artwork destroyed by a fire, loss of income in a business after the building burns down, cost of hotel rooms after a home is destroyed by a fire.
Living room furniture and artwork destroyed by a fire
Which of the following isn’t another name for an open peril policy? All risk policy, comprehensive coverage, named-peril policy, a special policy
Named peril policy
Which of the following statements about loss valuation isn’t correct? Loss valuation and claims settlement mean the same thing, the deductible reduces any amount after the loss has been valued, the insurance company determines the appropriate amount of claim payment, the deductible increases any amount after the loss has been valued.
The deductible increases any amount after the loss has been valued.
Mr. & Mrs. Kim own a home in Chicago and a lake home in Wisconsin. Every year they travel to their lake home for Memorial Day weekend. While the Kims are at the lake home, their home in Chicago is considered to be _____________.
Unoccupied
The insured has a home with a replacement cost of $200,000 but has it insured for only $100,000. An 80% coinsurance provision is present in the policy. When an $80,000 loss occurs the policy will pay _______________.
$50,000
Which of the following is not covered by broad peril coverage? Timothy’s roof collapsed from the weight of snow after a blizzard, Amy’s home was robbed and the burglars caused damage to doors and windows, David had damage to his roof after a tree fell on his home, Rhonda had ceiling damage in her basement after her upstairs faucet had been leaking for over two months.
Rhonda had ceiling damage in her basement after her upstairs faucet had been leaking for over 2 months
Which of the following isn’t included on the basic cause of loss form? Internal explosion, the weight of ice/snow/sleet, lightning, fire
Weight of ice, snow, sleet
Adam has a blanket policy on his house. Which of the following best describes the items that are covered under this policy? Special limits of coverage apply to specified contents, all of the contents in his house are scheduled, all of the contents in his house are covered, a detailed list of covered items is required.
All of the contents in his house are covered
Renee has a policy that covers all risks of direct physical loss except for flooding because its specifically excluded. Which coverage form does Renee most likely have?
Special or Open Peril Coverage
An insured may be reimbursed on a damaged items repair cost when the repair cost is less than ____________.
The actual cash value (ACV)
As is relates to property insurance the person or business that has temporary possession of someone else’s property is known as _________.
The bailee
Which of the following statements isn’t correct? If the appraisers don’t agree on the loss they submit the differences to an umpire, the two appraisers select an umpire, the parties choose their own appraiser, the insurer chooses an appraiser for each party.
The insurer chooses an appraiser for each party
