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
... [Show More] company will make a payment to:
A. The first mortgagee, ABC
B. The Insured
C. Jointly to ABC and XYZ
D. All listed interests - Correct Answer -D. All listed interests Remember that the insurer is not
responsible to know the degrees of interest. In the event of a loss, one payment is made by
the insurer and it is up to the additional interests on working out their share.
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 - Correct Answer -A. Severability
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 - Correct Answer -B. Abandonment
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 - Correct Answer -D. Insurable Interest
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. A. Cancellation Clause
B. Policy Period
C. Pro Rata
D. Liberalization - Correct Answer -D. Liberalization The time frame is typically 60 days.
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 - Correct Answer -A. Doctrine of Proximate Cause
For example, if a property insurance policy covers the peril of fire but further damage is caused
by smoke, water used to extinguish, and the process of moving property away - fire is
considered to be the *proximate cause* of all of the damage.
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 - Correct Answer -A. Actual Cash Value
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 - Correct Answer -A. Warranty
The following are basic characteristics of a property or liability insurance contract, except:
A. Personal Contract
B. Conditional Contract
C. Loss of Settlement Contract
D. Contract of Adhesion - Correct Answer -C. Loss of Settlement Contract
The Insurer's 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 - Correct Answer -A. Conditional Contract "may be conditioned"
Which of the following is not one of the "Thresholds" in the "No-Fault" law?
A. Death of the Insured
B. Temporary Injury of the Insured
C. A permanent loss of a bodily function
D. Permanent scarring on the face of the insured - Correct Answer -B.
Temporary Injury of the Insured
Also included: permanent injury other than scarring and disfigurement
Under Mechanical Breakdown Coverage, new cars are eligible for service up to: [Show Less]