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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 |