Property Ins. Basics: Principals & Concepts

John and Sally are business partners and own a building together. John sells his half of the business (including the building) to Sally. One day later the building burns down. After reviewing the policy, Sally realizes that John is still listed on the policy. Who can collect for the loss to the building?
a. John and Sally 
b. Sally
c. John
d. John nor Sally

If losses totaled $400,000, expenses totaled $300,000, and earned premiums are $1 million, the loss ratio is ____%.

The function of ______ is to identify those risks the insurance company wishes to insure.

_______ rates involve modifications to class rates which are lowered for positive factors or raised for negative factors.

Rate that compares the individual risk with others in the same class is:

Rates based on the intuition of the underwriter are called:

A policy that lists the perils against which property is covered is:

Insurance that covers ALL the insured's property for ALL locations even NOT listed specifically is:

______ is a method of loss valuation used when the cost of replacing is astronomically unfeasible:

Renting a hotel room for the insured while repairs are made on his home is an example of _______ loss.

Replacement costs minus depreciation is:

A house that burned to the ground is an example of:
a. Class loss
b. Direct loss
c. Indirect loss
d. Retrospective loss