Basics of Homeowners & Auto Insurance: Contracts, Agreements, Deductibles, Coinsurance, Quizzes of Education Planning And Management

Download Basics of Homeowners & Auto Insurance: Contracts, Agreements, Deductibles, Coinsurance and more Quizzes Education Planning And Management in PDF only on Docsity! TERM 1 basic parts of the contract DEFINITION 1 Declarations-property or activity insured-named insured, policy datesDefinitionsInsuring AgreementExclusionsConditions TERM 2 Insuring Agreement DEFINITION 2 Promises of insurance company-homeowners--named peril (HO2)--all risk (open perils) (HO3, HE-7) TERM 3 Why is open perils preferred? DEFINITION 3 burden of proof on insurance company TERM 4 Reasons for exclusions DEFINITION 4 -Uninsuriable perils (ex flood, earthquake etc catastrophic)- extraordinary hazard (taxicab or racing under auto policy)- coverage by another contract ( auto excluded under homeowners) TERM 5 definition of insured homeowners DEFINITION 5 -insured and spouse-resident relatives-resident relatives under 24, who are full time students and away from home TERM 6 Definition of insured automobile policy DEFINITION 6 -insured and spouse-resident relatives-permissive user (reasonable belief of permission- from users point of view) TERM 7 endorsements and riders DEFINITION 7 Adds, deletes or modifies the policyexamples:-earthquake- scheduled property-personal property replacement cost- watercraft TERM 8 deductible DEFINITION 8 deductible is the amount subtracted from loss-eliminate small claims-reduce premium-reduce moral and morale hazard--encourage loss prevention TERM 9 deductibles in property insurance DEFINITION 9 -Flat ($500 per loss)-Percentage named storm deductible (2% of value of home)-annual aggregate (commercial insurance) TERM 10 Coinsurance in property insurance DEFINITION 10 -policy owner must insure property for at least 80% of current property value-if coins. is not met, insured will pay a percentage of the loss-property is valued as of date of loss