The following are basic characteristics of a property or liability insurance contract, EXCEPT:
A. Personal Contract
B. Conditional Contract
C. Loss
... [Show More] Settlement Contract
D. Contract of Adhesion
C. Loss Settlement Contract
The Insurers responsibility to pay for a property loss may be conditioned on the insured having used reasonable means to avoid the loss, to protect the property against further loss, and to give the insurer proof of the loss is defined as?
A. Conditional Contract
B. Adhesion Contract
C. Indemnity Contract
D. All of the Above
A. Conditional Contract
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A(n) __________ is one wherein economic loss would be suffered from an adverse happening to the subject:
A. Conditional Contract
B. Personal Contract
C. Economic Contract
D. Insurable Interest
D. Insurable Interest
The __________ states that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the occurrence.
A. Doctrine of Proximate Cause
B. Doctrine of Perils & Hazards
C. Insurance Policy Handbook
D. Doctrine of Property Insurance
A. Doctrine of Proximate Cause
Frank owned a home that was destroyed by a hurricane. Both ABC and XYZ Banks were listed as additional interests on his homeowner policy. The insurance company will make a payment to:
A. The first mortgagee, ABC
B. The Insured
C. Jointly to ABC and XYZ
D. All listed interests
D. All listed interests
The Loss Settlement Valuation that subtracts an allowance for depreciation is defined as?
A. Actual Cash Value
B. Replacement Cost
C. "Old For New"
D. None of the Above
A. Actual Cash Value
Insurance applies separately to each insured as if other insureds did not exist. This is defined as:
A. Severability
B. Conditional
C. Warranty
D. None of the Above
A. Severability
States that if the insurer adopts a revision which would broaden coverage without additional premium within some period of time prior to the policy period or during the policy period, the insured receives the benefit of such broadened coverage. (Usually 60 days)
A. Cancellation Clause
B. Policy Period
C. Pro Rata
D. Liberalization
D. Liberalization
Property insurance policies usually contain a(n) __________ clause, stating the insured cannot dump damaged property on the insurer and demand its full value:
A. Pro Rata
B. Abandonment
C. Liberalization
D. All of the Above
B. Abandonment
A policy condition, either based on information in the insured's application or inserted by the insurer, is defined as:
A. Warranty
B. Misrepresentation
C. Concealment
D. None of the Above
A. Warranty
If financial responsibility doesn't exist at the time of an accident, which of the following things must happen to avoid penalties?
A. The legally valid claims of others must be satisfied (up to 10/20/10)
B. The owner and operator must provide certification of future responsibility for future accidents
C. Both A&B
D. None of the Above
C. Both A&B
Jim has had an auto policy with the Wonderful Insurance Group for 3 years. 30 days before his renewal date he receives notice of the company's intention to non-renew because of 3 negligent losses and 1 speeding ticket in the past 3 years. His driving record and claim history make this a valid non-renewal.
A. True
B. False
B. False
Personal Injury Protection, or PIP, has a __________ per person, per accident limit.
A. 10,000
B. 20,000
C. 1,000
D. Depends on the damaged property
A. 10,000
While driving his own car, Bill is involved in an accident that is the fault of the other driver, Mike. He looks to collect for his injuries in the following order:
A. His PIP, Mike's Liability, his UM, his Med Pay.
B. Mike's Liability, his PIP, his Med Pay, his UM.
C. His PIP, his Med Pay, Mike's Liability, his UM.
D. His PIP, his Med Pay, His UM, Mike's Liability.
C. His PIP, his Med Pay, Mike's Liability, his UM.
eremy has a not at fault accident. If he has PIP with a $1,000 deductible, how much can he expect his PIP coverage to pay toward his medical bills that total $3,000?
A. $1,600
B. $1,000
C. $2,400
D. $3,000
A. $1,600
Robert is driving his car in Florida when he is hit by an at-fault driver. Robert has $10,000 in medical bills, carries Basic PIP with a $1000 deductible and has no Med Pay. How much will the at-fault driver have to pay for Robert's injuries?
A. $2800
B Nothing--Robert's PIP is primary
C. $10,000
D. $1,000
A. $2800
Frank has a not-at-fault accident, he has basic PIP, no deductible and Med pay of $5,000. How much will his Med Pay contribute to medical bills of $15,000?
A. $15,000
B. $5,000
C. $3,000
D. $0, Frank is not-at-fault
B. $5,000
Jane and Sue are riding with Jim in Jim's car. All 3 are Florida Residents who own cars and carry Basic PIP with no deductible. Sue has $12,000 in Medical Bills. Whose coverage will pay and how much will it pay?
A. Sue's PIP will pay $12,000
B. Sue must first collect from any med pay available
C. Sue's PIP will pay $9600
D. Jim's PIP will pay $10,000
C. Sue's PIP will pay $9600 [Show Less]