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41 Cards in this Set

  • Front
  • Back

torts are any wrongdoing


t or f

false

fred cancels his policy and receives the entire unearned premium minus administrative expenses. this is what type of cancellation

short rate

open peril or all risk is known as what policy form

special

this device is used by insurers to encourage insureds to insure to value and results in a better premium best describe

coinsurance

what type of policy protects against loss from any peril except those that are excluded

open/all risk

policy provision that allows the mortgage to still be paid even though claim was denied is called?

mortgage clause

lowering the deductible would cause and increase in

premium and claim

furniture purchased 10 years ago cost 10,000 new. the adjuster depreciated the damaged furniture 5,000 the value at the time of loss was 15,000 the actual cash value of the furniture is

10,000

named perils can be located in what part of the policy?

insuring agreement/clause

main purpose of tort law is to determine who is responsible for damages


t or f

true

system in which damages are diminished (reduced) in proportion to the persons degree of negligence is

comparative negligence

concurrent causation excludes perils not covered such as

rain

insured pays an annual premium and the insurer cancels after 3 months the refund will be ___ months or ___ %

9


75%

when insurer cancels premium is refunded

pro-rate

punitive damages punish the ___ ___ meant to deter others from committing ___ ___ and are ____ from coverage under insurance policies

wrong doer


similar acts


excluded

the contractual phrase for assignment is

transfer rights and duties

special damages have economic value such as lost wages and

out of pocket expense

replacement cost replaces the damaged property without deduction for depreciation


t or f

true

insurer rescinds the policy and has not been exposed to loss the insured would receive a refund equal to the

all premiums paid

corporations can be subject to a claim for legal liability on the basis of absolute liability


t or f

true

general damages do not have economic value


t or f

true

there is no correlation between special and general damages


t or f

true

indemnity contracts are required to pay the full amount necessary to restore an insured who has suffered a covered loss


t or f

false

indemnity contracts contain a specific limit for a single claim and contain a provision to prevent insured from receiving full payment from two separate policies covering the same loss


t or f

true

insurer can rescind (void) a policy if there is a change in the company's underwriting policy that would preclude the insured coverage


t or f

false

the terms "you" and "your" in personal lines policies refers to

named insurer


residence spouse

an insurer may void the policy because the insured omitted the facts on their application they reasonability did not know about


t or f

false

the cost to repair a structure damage by wind is an example of consequential loss


t or f

false

what cause of loss form covers risk of direct physical loss subject to exclusions

open peril/all risk

legal liability cases may involve punitive, special, general and proximate


t or f

false

a policy holder pays an annual premium. six months into the policy the policy is cancelled and the insurer returns 50% of the premium. this is called what type of cancellation

pro-rata

when coverage is automatically broadened without additional premium this is known as what policy condition

liberal



the formula for actual cash value is

replacement cost - depreciation = ACV

property policies are considered to be first party contracts since they are between the insured and the insurer


t or f

false

part of the policy where you will find the rules for both the insured and the insurer

conditions

part of the policy where you will find coverage's described

insuring clause

a ___ is temporary contract between the insured and the insurer policy that provides protection only for the perils stated describes what policy

binder

a _____ policy pays a stated amount regardless of the loss or acv

value

replacement cost is also called the value at the time of loss which simply means todays price


t or f

true

property policies pay to the

insurer

to be held responsible for acts of another is what type of liablilty

vicarious liablilty