Unit 4 Quiz Flashcards
How will claims be handled if a dwelling is insured to at least 80% of it’s value?
Replacement cost.
Which of the following is a liability loss?
A fire that was caused by the insured’s negligence burns a neighboring building. The owner of the building sues the insured.
WHY? This is the only option where a 3rd party experienced a loss.
What term is used to describe an empty building that does NOT harbor normal activities?
Vacant.
Which of the following is NOT a duty of the insured following a loss?
Complying with the fire marshal’s investigation after a fire damages the insured’s home?
WHY? This is not a duty outlined in the CONDITIONS portion of a policy?
The insuring agreement of the property policy describes…
… the insured perils.
Which of the following statements about the standard mortgage clause is CORRECT?
Nothing the insured does can prevent the mortgagee from collecting under the policy.
All of the following accurately describe comparative negligence EXCEPT…
… both parties contribute equally to the loss.
Which of the following is the best example of something a court would award general damages for when a claimant is hit by a driver who ran a red light?
Insured’s emotional distressed caused by the accident.
WHY?
Which of the following lists all the required elements for establishing a charge of negligence?
Legal duty owed, breach of legal duty owed, proximate cause, damages.
WHY?
What is meant by the aggregate limit of liability?
The most the policy will pay per policy period, regardless of the number of claims.
An insured has a pit bull puppy. He takes great care to warn neighbors of the possible danger by posting signs, fencing the yard, and locking the gate at all times. When a neighbor’s child managers to open the gate and is bitten by the puppy, what type of liability would apply to the insured?
Absolute.
Under supplementary payments, the loss of earning limit is…
… $250 per day.
