The type of insurance company organized to return any surplus money to it's policy holders is known as what?
C) A Mutual Company
The reduction, decrease, or disappearance of value of the person or property insured in a policy is known as what?
What does the term "reasonable expectations" mean in insurance?
Certain expectations for coverage that a reasonable person would have based on sources other than just the policy language.
In insurance contracts, when does acceptance usually occur?
A) When the insurer approves a prepaid application.
What does "indemnify" mean in insurance?
C) To restore an insured to the same financial status as before a loss.
What is the difference between cancellation and non-renewal?
Cancellation is the termination of an insurance policy by either party prior to it's renewal date. Non-renewal is the termination of a policy at it's expiration date by not offering a continuation of the existing policy.
What is the term for the causes of loss insured against in an insurance policy?
What does the principal of utmost good faith imply?
There is no fraud, misrepresentation, or concealment between the parties to the contract.
A state-issued document empowering an insurance company to become an admitted insurer is called what?
B) A Certificate of Authority
When would a misrepresentation on an insurance application be considered fraud?
When it is intentional and material.
Study set to prepare for Virginia P&C licensing exam