B. Hazards come in three groups: Basic, Broad, and Special
A box of dynamite is a(n)
D. physical hazard
If you look to be covered by everything which is not excluded, you should buy
B) a. special cause of loss
All of the following statments concerning valuation in a property policy are true EXCEPT:
a. under Agreed Value, the insured and the company establish the value before the loss occurs.
b. Under Stated Amount, the insured does not know what will be paid on a loss until the loss occurs.
c. Under Stated Amount, the insured in guaranteed the limit on the Dec page following a loss.
d. Functional Replacement is also known as Repair Cost
Under Stated Amount, the insured is guarateed the limit on the Dec page following a loss
Andy has two property policies with identical peril power covering his property. The first has a limit of $75,000 and the second has a limit of $25,000. If andy sufers a $4,000 covered loss how will the two policies pay? /
A. the first will pay $3000 and the second will pay $1000
The policy provision which allows policyowners to enjoy enhancement made by the company to the policy form they have in force without waiting until a policy renewal date is known as
the insured's home is destroyed by a plumber with an out of control blow torch. The company pays for the loss and then sues the plumber. This process is known as.
d. insurable interest
Under a Special Cause of Loss form, the burden of proof following a claim is on the
Under the Broad Form Cause of Loss, the burden of proof following a claim is on the
In P&C policy, which names the insured, the property to be covered and the limits of the policy is known as the
The ________ Page of a policy contains important information about what is covered and for how much.
The insurancing Clause of a policy contains the company's promise to ____
The Conditions section of a policy are the rules of the _____.
The Exclusions section of the policy details those things that are not ______.
A Property policy can cover buildings (commercial and residential), personal property and ______ loss
indirect loss (loss of use)
Indirect losses are sometimes also called ________ losses
Perils cause losses give examples:
Hazzards make perils more likey to occure (examples)
Fireplace, wood buring stove
Replacement Cost is a level of valuation that means insured property is replaced with calculating _______
Actual Cash Value means?
Replacement Cost minus deprecation
Functional Replacement Cost means ?
Property will be restored to serve the same function (AKA repair cost)
Agree Value means teh property value is established prior to a loss occuring and that when a loss does occur the Insurance Comapany pays the _____ _____ amount.
Stated Value means the insured states the value of the property at the time of the loss but the insurance company can demand _____ of the figure given.
Fair Market Value means
the amount that a buyer would be willing to pay
Cost containment tools include Exclusions, Deductables and _________
The higher teh deductible, the lower the _____
The purpose of Coinsurance is to encourage insureds to buy enough ________ insurance
The word noncurrency means an insured has purchased more that one policy and that the policies have different _____ coverage.
A building's occupants are gone
A building's occupants and it's furninshings are gone
Liberalization means if a company enhances provisions in a policy in the middle of a policy period to provide better coverage, an insured will recieve those enhancements when?
Subrogation means if an insureds property policy pays for a loss caused by another person, the Insurance company will ask the insured to ______ the right of _____ to the company.
relinquish the right of recovery
No Benefit to a Baliee means an insureds property policy is not in plac eto protect someone (a Baliee) who?
has control of the insureds property
An insured always has certain duties after a loss including notifying the police if a law was broken and notifying the _______ _______ _____.
Insurance Company promptly
Appraisal is a process which can solve property claim ____
Salvage means ?
the company has the right to take property it has paid for
Named Peril policies require the insurance company to prove a loss is _____
excluded (non excluded -its covered)
There are 11 basic perils what are they:
4. windstorm or hail
5. riot or civil commotion
7. volcanic action
8. vehicles or aircraft
10. sprinkler leakage
11. sinkhole collaps
There are 14 Broad Perils:
the build of basic perils