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120 Cards in this Set
- Front
- Back
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What is an example of a surety?
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One that guarantees the performance of contracts. Surety means in bonding, the party (often the insurance company) that agrees to be responsible for the loss that may result if the principal does not keep their promise to perform. The surety has recourse against the principal for re-payment. This is different than casualty insurance where recourse against the insured is forbidden. |
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The Continuing Education Requirements do not apply to a producer who has been licensed in Alabama for 15 years and who is at least ___ years of age. 60 62 55 65 |
60
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Common and contract carriers’ liability that covers damage to cargo may be insured under:
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Motor Truck Cargo Forms
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Which of the following is true regarding personal property floaters? It is blanket coverage for personal property by category.
Coverage is written on an all risk basis.
It cannot be purchased to insure golf carts. All of the responses are correct |
All are true regarding personal property floaters.
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Which of the following would NOT be found in the conditions section of a homeowners insurance policy? |
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The first effort to provide insurance for land transportation risks involved an extension of ocean marine coverage known as the:
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"Warehouse to warehouse" clause This is called the “warehouse to warehouse” clause. Coverage applies from the warehouse from which the goods are shipped to the warehouse of the recipient. |
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The Liability Coverage section of the Personal Auto Policy does not extend coverage to which of the following vehicles Mr. Love owns? A camper-trailer pulled by the family car
The family car
A pick-up truck with a gross vehicle weight of 7,000 pounds, used to deliver quotations for plumbing work. Motorcycles used for cross country travel |
Motorcycles used for cross country travel. Motorcycles must be added by a specific endorsement for coverage to apply. |
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An unexpected event, identifiable in time and place
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"Accident" as it appears in the Personal Auto Policy
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Uninsured motorist coverage would not pay if: The insured carries underinsured motorist coverage
Medical payments coverage would apply No-fault would pay Other liability coverage applies |
Other liability coverage applies If there is other collectable liability coverage the uninsured motorist coverage would not pay the claim. |
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James purchases an outboard motor boat. He will have automatic coverage for the boat under his homeowner policy under which of the following circumstances?
I. He reports the purchase of the boat to his insurer within 60 days. II. The boat is in storage on his premises. III. He reports the purchase of the boat to his insurer within 45 days. |
II and III only. The homeowner policy will cover a newly acquired boat as long as the insured reports it to the insurer within 45 days of the purchase or if it is in storage on his premises. However, be aware of the limitations on the hull value, horsepower limitations and size and use of the watercraft. A watercraft or yacht policy may be a better choice. |
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An insurance policy is issued as a policy having two unequal parts, the liability assumed by the insurer, and the premium paid by the insured. This contract is referred to as:
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An aleatory contract
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An Alabama producer must keep complete records pertaining to transactions under his or her license for at least:
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3 years
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What is the purpose of freight insurance?
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Covers shipper fees
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All of the following are exclusions under Equipment Breakdown coverage, except: Sudden and accidental loss. Fire losses. Flood. Wear and tear. |
Sudden and accidental loss
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The Equipment Breakdown policy covers
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sudden and accidental loss. It can be modified to cover indirect loss (loss of income) as a result of a direct loss. The commercial property forms would cover a fire loss as a result of a boiler explosion since this would be an ensuing loss. |
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An umbrella policy without any special endorsements would NOT cover:
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Uninsured Motorists Uninsured motorists must be added by endorsement in order for the umbrella policy to cover this exposure. |
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The Main Street Department store carries a bond covering all of its employees. The bond limit is $10,000. Three employees acting in collusion steal $30,000. How much will be paid under the policy?
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$10,000. The bond limit is the most that will be paid regardless of the number of employees acting in collusion. If they were covered under a named schedule basis the limit would apply per employee. |
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Mr. Roberts owns a pickup truck. His neighbor Ron asks Mr. Roberts to drive him to an appliance store to pick up a new wide screen TV. They load the TV onto the truck but fail to secure it properly. On the way to Ron's house, Mr. Roberts hits a bump in the road and the TV falls out and runs into another car causing the TV to be destroyed and damage the other vehicle. Ron feels Mr. Roberts is at fault. What coverage would apply?
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Ron's homeowner policy will pay for the TV and Mr. Robert's policy will pay for the damage to the other car. Ron's homeowner policy would pay for the TV because the policy covers vehicle damage to personal property. The truck was the instrument that created the chain of events that lead up to the damage to the TV. Mr. Robert's auto policy specifically excludes property being transported. Mr. Robert's policy will pay for the damage to the other car. |
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A warranty in insurance is best described as
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A guarantee that the statements made by the applicant are completely true and untrue statements can void the coverage
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Jim Johnson has an automobile policy with a combined single limit of $50,000. He has an at-fault accident and incurs the following expenses.
$30,000 bodily injury judgment. $30,000 property damage judgment. $5,000 damage to traffic light. $6,000 attorney's fees for his defense. $300 in premiums for appeal bond. $75 in bail bond premiums for related traffic violations. Which of the following is the maximum amount his insurance company will pay? |
$56,375 The single limit provides both bodily injury and property damage coverage in one limit. In this case the limit is inadequate. The policy can only pay its limit of $50,000 plus the $6,000 in attorney fees, the premiums for the appeal bond and the $75.00 in bail bond premium. The last three items are supplementary payments that apply IN ADDITION to the limit of liability. |
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Coverage G under the arm forms covers
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barns, silos, fences, radio equipment, and other farm structures that are not related to the dwelling.
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Occurrence includes sudden and accidental damage and also includes
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continuous or repeated exposure, which results in bodily injury and/or property damage. Example: Smoke from a factory discolors the paint on nearby homes |
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You loan your car to a friend who subsequently allows one of her employees to use it for a company errand. En route, the employee causes an accident injuring himself and two people in the other car. Who is an “insured” for liability insurance under your policy?
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All of the responses are correct Under a PAP an “insured” is defined specifically under Liability Insurance as three parties: the named insured for use of any auto, others for the use of the insured’s auto, and anyone else or any company which might be held liable because of use by either of the former. So the policy would cover you (even though you weren’t driving), and the employee (since he was driving with the reasonable belief that he was entitled to), and your friend (since it was a business errand, her company may be held liable). |
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In Alabama, an adjuster must keep records pertaining to transactions under his or her license for at least: |
1 year
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symbol 1 used in the BAP declarations
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It is used only for liability coverage. Symbol 1 provides the broadest liability coverage. If this symbol is used, “any auto” is covered. |
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A claims-made CGL policy automatically includes
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a "basic extended reporting period" which gives the insured 60 days beyond the expiration date to report occurrences to the insurer which the insured suspects MAY result in a claim. If a claim is made against the insured during the next FIVE years for one of those reported occurrences, the insurer will cover it.
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Which of the following losses would be covered under the HO-3 form?
I. The husband's shotgun is stolen from a hotel room while he is traveling to a skeet shoot. II. The wife's money roll is lost at an unknown location. III. An individual demands a reward for returning the insured's lost dog. IV. The family's lawn mower is destroyed in a garage fire. |
I and IV only The HO-3 covers theft of and fire to personal property while it is anywhere in the world. Property merely lost (where there is no evidence of theft or attempted theft) does not constitute theft. Rewards paid for the return of covered property are not covered under the HO-3 form. |
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An applicant for an Alabama resident insurance producer license must complete a prelicensing course of at least ____ of classroom hours or equivalent individual instruction.
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40 hours.
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The insured is covered under a BOP policy. Contents coverage is included. If the insured buys a separate piece of machinery and insures it separately, how will the BOP policy respond to a loss to this machinery?
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The equipment policy will be primary and the BOP will be excess if the separate policy does provide adequate limits of coverage. The BOP will only pay on an excess basis if the other coverage does not provide adequate limits of coverage. |
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What is the purpose of the Nationwide Definition for inland marine exposures outlined in specific detail:
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The coverage that marine insurers could write..Explanation:
This defines the types of coverage that inland marine insurers could provide. |
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Which of the following events, arising out of the use of a covered auto, is covered under the Personal Auto Policy?
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Damage to a private garage rented by the insured. .Explanation:
PAP liability coverage excludes property damage to property owned or being transported by that insured, or to property rented to, used by, or in the care of that insured. The exclusion does not apply, however, to property damage to a residence or private garage. Intentional acts are always excluded. |
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In the event of a dispute between the insurer and insured concerning the value of a property settlement, which of the following homeowner conditions would apply? Appraisal clause
Duties of the insured
Suit against the company Loss settlement clause |
Appraisal
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What is the purpose of the "liberalization clause?"
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It states that if an insurer decides to broaden its standard policy coverages, then all outstanding policies issued prior to that decision will automatically receive those new coverages
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An insured has purchased "claims-made" General Liability coverage to replace an "occurrence" form was carried. The policy contains a retroactive date of 01/01/14. A claim that occurred 12/15/13 would be denied under the claims made form for which of the following reasons?
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The retroactive date eliminates previous claim coverage. Claims-made coverage applies only to those claims that occur after the retroactive date and are "made" during the policy period. The previous occurrence form should provide the coverage if the type of claim presented is covered by the policy. |
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What is the limit that is paid for water damage under an Equipment Breakdown policy?
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$25,000
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Which of the following is not considered a covered auto under the personal auto policy? A large truck used in any business on a full time basis.
A temporary substitute vehicle when the insured’s vehicle needs repaired.
A vehicle leased for six months or more. A newly acquired vehicle. |
A large truck used in any business on a full time basis. A large truck used exclusively in business should be covered under a Business Auto policy. |
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Aircraft hull insurance will provide coverage for
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Damage to or loss of the aircraft hull or fuselage. Aircraft hull insurance indemnifies the policyholder for damage to or loss of the aircraft hull or fuselage. These policies are similar to auto policies in terms of coverage's offered. |
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Which of the following best describes a sidetrack agreement which is an insured contract under the CGL? Rock-N-Jocks enters into a lease agreement to open a store at the mall.
ABC General Contracting has "hold harmless" wording in their contract with XYZ Plumbing for worked performed on behalf of ABC.
B&O railroad builds an extension track off of their main line and runs the track right behind the loading dock of the Ford Motor Company. Otis Elevator Company installs the elevators in the new office tower. |
B&O railroad builds an extension track off of their main line and runs the track right behind the loading dock of the Ford Motor Company.
Explanation: Even though the track is the property of B&O railroad, it was built for the benefit of the Ford Motor Company. Ford enters into a sidetrack agreement with the railroad. This is an insured contract under Ford's CGL in case of injuries sustained on the side track. |
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An insured's television set is damaged while at a repair shop. The interest of the repair shop is not covered because of
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No Benefit to Bailee. The intent of the policy is to cover only the insurable interest of the insured. Bailees such as a TV repair shop or dry cleaners would not be an insured under the insured's policy. They must provide their own coverage. |
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Of the following businesses, which one is not eligible for a Businessowners Policy? Auto dealer Barbershop Beauty shop Pizza shop |
auto dealer
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A 36 foot ocean sailing vessel with auxiliary power would best be covered under what type of policy?
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YACHT POLICY
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Under the dwelling policy, what is the purpose of adding the EC (extended coverage) endorsement?
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It adds additional perils to the coverage
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Which of the following are covered by the Federal Employers’ Liability Act (FELA)? Longshoremen and harbor workers
Coal miners
Employees of interstate railroads Crew members on federal waters and the high seas |
Employees of interstate railroads. The Federal Employers’ Liability Act (FELA) applies to employees of interstate railroads. Like the Jones Act, it allows workers or the survivors of deceased workers to sue their employers for occupational injuries resulting from the employer’s negligence. |
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In case of a disagreement regarding a property loss under the appraisal clause, who pays the cost of the umpire?
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Both the insured and the insurer
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A tree has fallen on the insured’s vehicle. This is an example of what type of loss?
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Other Than Collision
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The BOP has limitations on the square footage in regard to eligible risks. What is the maximum square footage a building can contain and still be eligible for the policy?
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35,000 square feet. Eligible risks cannot exceed 35,000 square feet in total floor area, or exceed $6,000,000 in annual gross sales at each location. Incidental storage buildings not exceeding 35,000 square feet and occupied by the insured may be included. |
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Symbol 46 has been use to identify the covered autos under a trucker's policy. Five of the named insured’s six autos are covered for collision. During the policy period the insured purchases an additional (seventh) auto. Which of the following is true?
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Unless the newly acquired auto replaces an auto that had collision coverage, there will be no collision coverage on the new auto until the named insured specifically insures it
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Aircraft medical payments can be amended by endorsement to include injury to:
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THE CREW
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If the named insured's employees use their own vehicles to run errands, and the named insured does not have commercial auto coverage, what coverage should be added to the Businessowners Coverage Form?
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The Hired and Non-owned Auto Liability endorsement
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The requirements of the Employment Retirement Income Security Act compel employers to cover their professional liability exposure for honest errors and omissions regarding employee benefit plans by purchasing:
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Fiduciary Liability
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Which of the following is not specifically considered an unfair trade practice under the insurance code of most states?
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Appointment of producers by unauthorized insurers Although an unauthorized insurer cannot legally transact insurance in the state, there is no specific provision prohibiting the appointment of producers by such an insurer |
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Under the "emergency program" the National Flood Insurance Program will insure a single family residence for up to:
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$35,000 Under the "regular program" the limit can be up to $250,000. |
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Many stationary objects, such as bridges, tunnels and power lines fall within the nationwide marine definition because they are considered to be:
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Instrumentalities of transportation and communication. Items such as bridges, tunnels, power lines, pipelines, and radio transmission towers fall specifically under the nationwide marine definition category because they are “instrumentalities of transportation or communication.” They are not insured under typical commercial property insurance. They fall specifically under the nationwide marine definition category called "bridges, tunnels, and other instrumentalities of transportation and communication”. |
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A company's promise to "pay for damage caused by or resulting from any covered cause of loss" would be found in which of the following sections of an insurance policy?
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Insuring Agreement
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If the insurance company chooses to inspect the insured’s premises, the insurance inspection:
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Was made for the benefit of the insurance company and does not warrant that the insured is in compliance with all laws and regulations
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Lightning strikes a 50-foot oak tree in an insured's yard splitting the tree in half. The tree falls hitting several small trees causing extensive damage to the trees and scattering debris in the yard. The HO-2 form will pay:
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A maximum of $500 per tree. Most homeowner policies provide a maximum limit of 5% of Coverage A and a maximum of $500 for any one tree, shrub or plant |
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Which of the following policies would be used to cover imports and exports? Ocean marine Personal Property General Liability Businessowners policy |
Ocean marine Ocean marine pertains to import and export risk, including the cargo being shipped as well as the vessel transporting goods or people. |
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Your homeowners policy provides jewelry coverage for a set limit. If you insure a piece of jewelry separately, on a floater, and the jewelry is stolen can you claim it under both the HO coverage and the floater?
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No, because you cannot collect twice for the item's value. Once coverage is specifically written separately, no coverage would apply under the homeowner policy for jewelry. |
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Employer’s liability coverage under the workers compensation policy could cover the legal liability of an employer in which of the following situations? Exempt employments Illegal employment Non-compensable injuries All of the responses are correct |
All of the responses are correct All of the responses are correct. Sometimes claims fall outside the statutory coverage required by the states. This coverage provides legal defense in a civil suit action by the employee or the dependents of the employee. |
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To indemnify means
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To promise to restore the injured party to his or her pre-loss condition |
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To indemnify is to
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restore the injured party to the condition that was present prior to the loss. In a life insurance contract, the payment to the beneficiary is called indemnity.
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An equipment dealers coverage form is designed to provide insurance on: Equipment owned by the insured dealer.
Equipment in the insured’s custody for servicing or storage.
Equipment entrusted to the insured dealer for sale. All of the responses are correct. |
All risks may be covered.
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Crop insurance usually protects a proportion of the reduced yield following an insured loss. "Reduced yield" refers to:
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Coverage will pay the determined percentage reduction in yield times the amount of insurance per acre, regardless of the actual crop loss. The insured chooses the reduction in yield percentage. The higher the percentage the more coverage in case of a loss. Most companies prefer the insured share in the loss at least 25% |
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The personal inland marine coverage form which provides open peril insurance for specific classes of personal property on an itemized and scheduled basis is called a:
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Personal article floater The personal article floater requires the specific listing of each item to be insured. The personal property floater covers property on an "unscheduled" basis using a blanket limit per type of personal property to be insured. This form requires the specific listing of each item to be insured. |
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Which of the following losses is not excluded under trailer interchange coverage?
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Damage to trailers while not connected to a power unit. The trailer interchange coverage applies whether the trailer is attached or unattached to a power unit. Coverage is provided under an agreement while the trailer is in the insured’s possession. |
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When it is known that an employee is guilty of theft or other dishonest act, how is coverage affected?
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Coverage is cancelled immediately. When it is known that an employee has committed a crime, the coverage for that employee terminates immediately for future losses. |
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Forcible removal of property from a messenger through the threat of violence is called:
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Robbery
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Under farmowners liability coverage, which of the following is covered under advertising injury coverage? A insured farmer who unknowingly disparaged the crops grown by another farm.
Advertising the wrong price of the goods
Advertising the wrong description of the goods Intentionally making disparaging remarks about another’s farm products. |
An insured farmer who unknowingly disparaged the crops grown by another farm. The coverage would cover a farmer who unknowingly disparages the crops grown by another farm. Intentional acts, advertising incorrect prices or descriptions are not covered. |
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Which of the following is a “private passenger type” auto under the trucker's policy? A van not used for business purposes. A truck-tractor. A trailer. A pickup used for business purposes. |
A van not used for business purposes |
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The term “undamaged stock” in Equipment Breakdown coverage refers to:
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Refers to the reduction in the value of the stock
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Farm liability coverages include all of the following, EXCEPT: Professional Liability. Bodily Injury and Property Damage. Personal Injury and Advertising Injury. Medical Payments to Others. |
Professional Liability
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Who is the principal in a bid bond?
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The Contractor. The surety is bonding the contractor who is the principal. |
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A commercial inland marine condition defining the insurer’s subrogation rights:
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Guarantees the insurer’s ability to recover from a third party who is responsible for a covered loss. When the insurer pays a covered claim caused by a third party, the insurer can seek reimbursement for the loss if they can prove negligence or responsibility on the part of the third party. |
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Making distinctions in the premium rates charged for insurance between insureds or property having like insuring or risk characteristics is an example of:
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Unfair Discrimination. Risks showing like characteristics must be treated equally. Making distinctions on similar risks is unfair discrimination. |
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The Federal Crop Insurance Act of 1980 changed the role of the FCIC in providing crop insurance and established the Multi-Peril Crop Insurance (MPCI) program. Under the MPCI program:
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Similar coverage is sold by private insurers and the federal government. A dual marketing system has been developed, but it is the intent that the policy writing and servicing functions be almost entirely shifted to the private sector. |
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Mary has insured her one-family home under an HO-3 form with a limit of $100,000. What limit is she automatically entitled to for damage to her unattached garage on the premises?
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$10,000 is correct. The HO-3 form provides 10% of the dwelling limit that applies to unattached structures. The most the insurance company will pay is $10,000 (10% of $100,000). |
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Under a business owners policy, the hired–non owner auto coverage would apply to:
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Vehicles borrowed by the insured.Explanation:
This endorsement used with the BOP where the insured does not carry business auto coverage. It provides two coverages. The first covers the "insured's" legal liability for bodily injury or property damage that arises out of the maintenance or use of a hired auto by the insured or the insured's employees in the course of the insured's business.The second purpose of this endorsement is to provide bodily injury or property damage that arises out of the use any non-owned auto in the insured's business by any person. |
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Which of the following would be considered vacant on an unendorsed commercial property policy?
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A leased building in which more than 31% of the building is unoccupied is correct.Explanation:
In the Building and Personal Property Coverage form, under Loss Conditions, the Vacancy Clause states that when the policy is issued to the owner or general lessee of a building, such building is vacant unless at least 31% of its total square footage is either (a) rented to and in use by a lessee or sub-lessee, or used by the owner to conduct normal operations |
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A Commercial Property Policy includes a protective safeguard endorsement indicating there are protective safeguards installed in the risk such as a sprinkler system. Should the system become inoperative, how long does the insured have to report this fact to the insurer?
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48 hours
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The definition of concealment is:
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The neglect to communicate that which a party knows and should communicate to the other party. Concealment is when one does not reveal information that should be communicated. Sometimes this is done because the information withheld could have an adverse affect if known. |
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The CAN-SPAM act of 2003 requires
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Senders of commercial electronic mail may not mislead recipients as to the source or content of such mail. Senders of commercial electronic mail may not mislead recipients as to the source or content of such mail and recipients of commercial electronic mail have a right to decline to receive additional commercial electronic mail from the same source. |
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A monetary award to a plaintiff in a tort action in excess of the cash value of the economic loss as a punishment to the wrongdoer and as a deterrent to similar conduct by others is known as:
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Punitive damages is correct.Explanation:
An award intended to punish is considered "punitive damages." |
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The professional liability of a lawyer would be addressed by which type of insurance?
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Errors and Omissions.Explanation:
Errors and omissions insurance is a type of professional liability insurance covering attorneys and other professionals who are blamed by others for various wrongful acts. |
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In commercial property what is the effect of exercising the "agreed value" option?
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: Negates coinsurance.Explanation:
Agreed value is an option on the Building and Personal Property Coverage form. If selected and indicated on the Declaration page, the coinsurance condition does not apply. |
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What percentage of an employee’s weekly wage will be paid during the period of temporary total disability?
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66 2/3%.
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Which of the following are also insureds in connection with conducting the insured’s business under a commercial umbrella policy?
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Employees in connection with bodily injury to third parties is correct.Explanation:
Employees are covered for third party legal actions as a result of a work related accident caused by the employee. |
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The ABC Office Supply Co. carries $100,000 insurance on a storage building held under a $50,000 mortgage acknowledged in the policy. ABC stores dynamite in the building without informing the insurance company. An explosion destroys the building. What is the maximum the mortgagee can recover?
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$50,000 is correct.Explanation:
Even though the insured concealed the fact that the hazard was increased, the mortgagee will still be able to recover the $50,000. |
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Any misinformation provided by an applicant which is such that the insurance company would not have issued a policy if the true facts were known is:
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Material misrepresentation. This statement defines material misrepresentation, which is deliberately withholding an important fact that would have a bearing on the acceptability and/or pricing of the risk. If a policy is issued and a claim occurs as a result of material misrepresentation within the first two years after issue, the insurer can deny payment of the claim under the incontestability clause in the policy |
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Controlled business includes insurance procured by agents on
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Property or risks of close relatives. .Explanation:
Controlled business is written on the lives or property of family members, close relatives, the agent himself, his employees, legal dependents or business associates. Property formerly owned by employees (or property owned by former employees) is no longer considered controlled. The purpose of the insurance license is to serve the public, not purely to write controlled business. |
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What section of an insurance contract contains the terms used throughout the policy?
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definitions
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When the insurer makes a change that broadens coverage under an existing policy without additional premium, this is known as the:
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Liberalization Clause. This is called the "liberalization clause." Under the dwelling forms, this implementation date must fall within 60 days prior to or during the policy period stated in the declarations. |
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How does the mobile home endorsement reduce or change coverage? Other structures are covered at a minimum of $2,000
Coverage can be added for transportation coverage
The definition of covered property includes the mobile home and other structures located on land All responses listed are correct |
All responses listed are correct
Explanation: The mobile home endorsement changes the description of covered property. There is also a minimum limit of $2,000 for other structures. An endorsement can be added for transportation coverage. |
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covered under a multi-peril crop policy?
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Low Yields . The multi-peril crop insurance program provides protection against low yields and poor quality crops as well as prevented planting, late planting and replanting costs for most crops subject to the perils insured against. The coverage applies to income protection. Crop revenue insurance goes a step further than multi-peril crop insurance by guaranteeing farms a certain income, which allows them to manage both yield and price risk. |
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An alien insurance company is:
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One formed in Great Britian Alien insurers are insurance companies formed and domiciled in another country, but may be given authority to transact insurance in this state. |
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Personal Excess Liability coverage provides
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Higher limits. Personal Excess Liability provides higher limits. |
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Inland marine policies can cover all of the following, EXCEPT: Property of a moveable nature Bridges, Piers and Decks Radio and TV Towers Aircraft |
Aircraft.Explanation:
Airplanes are covered under an aviation policy and not inland marine insurance contracts |
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coverages may be added by endorsement to an Equipment Breakdown Policy?
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Business Income. Business income coverage can be added to the Equipment Breakdown policy. |
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The insured has suffered a covered loss under his DP-3 dwelling form. He fails to protect the property from further loss. The additional loss that occurs as a result of his inactions may be denied because of what clause in the policy?
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Neglect.Explanation:
The policy contains a "neglect" exclusion. When the insured fails to protect the property from further loss and use all reasonable means to save the property at and after the time of loss the insurer may invoke this exclusion. |
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An inured carries a general liability policy and has hired a trucking company to transport the equipment. The trucking company carries a commercial auto policy. The insured loads a piece of machinery onto the truck and fails to secure it properly. The trucking risk is transporting the cargo and it falls off the truck and hits another car. Which policy or policies would cover this claim?
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The commercial auto policy would cover the claim.. The commercial auto policy would respond to cover the claim for damages to the damaged party. The damage to the cargo itself would not be covered. The trucking risk and the insured should both carry cargo coverage. |
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A Property Value Reporting form is used to:
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List and valuate business personal property at an insured location.Explanation:
Property value reporting forms are provided to business owners so that they can accurately list and insure their business personal property to value. |
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The law of large numbers is a statistical concept that
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relates to probability. It is one of the factors insurance companies use to determine rates. As the number of insured units increases, the ability to predict total and average losses increases.
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If a crop insurance policy does not cover loss of the first 10% of a crop's value, but does cover a fixed percentage of any additional loss, the policy is said to be written:
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On an excess over basis. The term "excess over" means that the coverage applies as excess, and that the insurer has no liability until the loss exceeds a particular threshold. |
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The part of the workers compensation policy that contains the cancellation procedures is:
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Part Six - Conditions. The Conditions Section - Part Six spells out the cancellation procedures. |
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What is Coverage A under a homeowners policy? |
Dwelling |
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Coverage B under a Homeowners Policy?
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Other Structures |
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Coverage C under the Homeowners policy?
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Contents |
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Coverage D under the Homeowners policy? |
Fair Rental Value
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Coverage E of Homeowners policy? |
Additional Coverages |
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DP-1 is a |
Coverage's A-C provides ACV for loss settlement only one that is not stacking (not additional insurance) |
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DP-2 is a
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Coverage's A & B provides RCV for loss settlement Coverage C under DP-2 provides ACV for loss settlement |
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DP-3 is a |
same as DP-2 only difference is that DP-2 is named peril basis, and DP-3 is open peril basis. Coverage's A & B provides RCV for loss settlement Coverage C under DP-3 provides ACV for loss settlement |
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DP-1 Basic Form - Coverage A Limit of Insurance |
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DP-1 Basic Form - Coverage B Limit of Insurance |
Coverage B-Other Structures under DP-1 Limit of Insurance is settled at 10% of Cov A (not additional insurance) |
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DP-1 Basic Form- Coverage C Limit of Insurance |
Coverage C- Contents under DP-1 Limit of Insurance is settled at Insured's choice |
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Limit of Insurance |
Coverage D- Fair Rental Value under DP-1 Limit of Insurance is settled at 20% of Cov A (not additional insurance) |
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DP-2 Broad Form & DP-3 Special Form- Coverage A Limit of Insurance |
Coverage A- Dwelling under DP-2 & DP-3 Limit of Insurance is settled at capital amount. |
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Limit of Insurance |
Coverage B- Other structures under DP-2 & DP-3 Limit of Insurance is settled at 10% Cov A (additional coverage) |
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Limit of Insurance |
Coverage C- Contents under DP-2 & DP-3 limit of insurance is settled at insured's choice |
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DP-2 Broad Form & DP-3 Special Form Coverage D Limit of Insurance |
Coverage D- Fair Rental Value under DP-2 & DP-3 limit of insurance is settled at 20% of Cov A (additional coverage) |
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DP-2 Broad Form & DP-3 Special Form Coverage E Limit of Insurance |
Coverage E- Additional Living Expense under DP-2 & DP-3 limit of insurance is settled at 20% of Cov A (additional coverage) |
