Insurance Notes: Questions and Answers for Insurance Studies, Exams of Insurance Economics

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Insurance Notes QUESTION AND ANSWER 2024 GRADED A+ UPGRADE Uncertainty of future outcomes -The Answer Is Risk Company that has purchased a fire policy on its building -The Answer Is Decreased risk with respect to a loss Type of insurer considered to be participating -The Answer Is Stock Insurer Demonstration of identification -The Answer Is Payment for medical expenses and vehicle damages after a car wreck Term for a stock company -The Answer Is Participating company Purpose of a deductible -The Answer Is To decrease insured losses Effect of a deductible -The Answer Is Increasing the insurer's administrative expenses Exception to the purpose of a deductible -The Answer Is Indemnify the insured Insurance Notes QUESTION AND ANSWER 2024 GRADED A+ UPGRADE Agreement where the insured makes a payment to Mary's banker -The Answer Is Assignment Purpose of a deductible -The Answer Is To reduce moral hazards Example of a physical hazard -The Answer Is Faulty wiring Exception to having an insurable interest -The Answer Is An ex-owner who didn't cancel the policy Example of a hazard -The Answer Is A slippery road Exception to the purpose of a deductible -The Answer Is Increase the cost of insurance Outcome when a property is insured by two policies with equal coverage -The Answer Is Both insurers will share equally in the loss Insurance Notes QUESTION AND ANSWER 2024 GRADED A+ UPGRADE Promise to maintain a burglar alarm system -The Answer Is Warranty Procedures to be followed to collect on a loss -The Answer Is Conditions Section of the policy that is considered part of the policy -The Answer Is Application Policy provision that may void the policy if violated -The Answer Is Warranty Section of the policy that limits the scope of coverage -The Answer Is Exclusions Section of the policy that contains the location of the insured property -The Answer Is Declaration Section of the policy that contains the Other Insurance provision -The Answer Is Conditions Insurance Notes QUESTION AND ANSWER 2024 GRADED A+ UPGRADE Written statement of fact guaranteed to be true -The Answer Is Warranty Coverage provided by TRIA -The Answer Is Acts of Terrorism Purpose of the Fair Credit Reporting Act -The Answer Is Allows consumers to insert corrective statements in their consumer reports Entitlement of the insured under the Fair Credit Reporting Act -The Answer Is To be told the name and address of the consumer reporting company Example of concealment -The Answer Is Insured intentionally not informing the insurer about ownership percentage Evidence of consideration -The Answer Is Paying a premium Action of filling out an application for insurance -The Answer Is An offer Insurance Notes QUESTION AND ANSWER 2024 GRADED A+ UPGRADE Representations given by the insured to the insurer -The Answer Is Application Presumption of a statement in the proof of loss form -The Answer Is Representation Section of the policy that contains the premium -The Answer Is Declaration Section of the policy that lists insurable losses -The Answer Is Insuring Agreement Promise by the insured that certain future conditions will exist -The Answer Is Warranty Section to check for coverage in a named peril policy -The Answer Is Insuring Agreements Section of the policy that contains the covered perils -The Answer Is Insuring Agreements Example of concealment -The Answer Is Applicant intentionally withholding material facts in an application Insurance Notes QUESTION AND ANSWER 2024 GRADED A+ UPGRADE Example of a direct loss -The Answer Is Water damage caused by firefighters Purpose of the appraisal provision -The Answer Is Determines the amount of the loss Outcome when a covered loss occurs after policy cancellation without notifying the mortgagee -The Answer Is The mortgagee may recover the balance owing on the mortgage Section of a Special form policy that determines whether a peril is covered -The Answer Is Exclusion Payment based on the actual cost to replace an item -The Answer Is Replacement cost Concept related to insurable interest and actual cash value -The Answer Is Indemnity Coverage provided by Special form -The Answer Is Earthquakes Insurance Notes QUESTION AND ANSWER 2024 GRADED A+ UPGRADE Payment based on the cost to replace the property -The Answer Is Replacement cost Coverage not paid by a policy for a leaky roof -The Answer Is Repair of the leaky roof Insurer's required assignment of rights of recovery after paying a claim -The Answer Is Subrogation Insurer's suit against a third party after paying a claim -The Answer Is Subrogation Requirement to notify the insurer of a loss -The Answer Is Immediately Value that takes depreciation into account -The Answer Is Actual cash value Purpose of a mortgage clause -The Answer Is Grants the mortgagee specific rights not granted to the insured Insurance Notes QUESTION AND ANSWER 2024 GRADED A+ UPGRADE Action to be taken by the mortgagee if the insured fails to submit a proof of loss -The Answer Is File a proof of loss form Coverage provided by most property policies -The Answer Is Actual cash value Coverage provided by Broad form -The Answer Is Glass breakage Action of the insurer after receiving a claim caused by a third party -The Answer Is Inform the applicant that an investigative report will be made Coverage not provided by the Fair Credit Reporting Act -The Answer Is Require that the insurer supply a copy of the report Coverage provided by the Fair Credit Reporting Act -The Answer Is Allows consumers to insert corrective statements in their consumer reports Coverage provided by binders -The Answer Is May be oral Insurance Notes QUESTION AND ANSWER 2024 GRADED A+ UPGRADE Coverage not paid by a policy for a leaky roof -The Answer Is Repair of the leaky roof Coverage provided by an Insurer's required assignment of rights of recovery -The Answer Is Subrogation Coverage provided by an Insurer's suit against a third party -The Answer Is Subrogation Requirement to notify the insurer of a loss -The Answer Is Immediately Value that takes depreciation into account -The Answer Is Actual cash value Purpose of a mortgage clause -The Answer Is Grants the mortgagee specific rights not granted to the insured Action to be taken by the mortgagee if the insured fails to submit a proof of loss -The Answer Is File a proof of loss form Insurance Notes QUESTION AND ANSWER 2024 GRADED A+ UPGRADE Coverage provided by most property policies -The Answer Is Actual cash value Coverage provided by Broad form -The Answer Is Glass breakage Action of the insurer after receiving a claim caused by a third party -The Answer Is Inform the applicant that an investigative report will be made Coverage not provided by the Fair Credit Reporting Act -The Answer Is Require that the insurer supply a copy of the report Coverage provided by the Fair Credit Reporting Act -The Answer Is Allows consumers to insert corrective statements in their consumer reports Coverage provided by binders -The Answer Is May be oral Coverage not provided by Extended Coverage -The Answer Is Earthquake Insurance Notes QUESTION AND ANSWER 2024 GRADED A+ UPGRADE Outcome when an insured transfers ownership of a property to the insurer after new zoning laws prevent replacement -The Answer Is Abandonment Example of a direct loss -The Answer Is Water damage caused by firefighters Action to be taken by the insured after a loss -The Answer Is Protect the property from further loss Illegal attempt at abandonment by the insured -The Answer Is Trying to turn partially or totally destroyed property over to the insurer while demanding full payment Illegal attempt at abandonment by the insured -The Answer Is Demanding full payment for damaged property given to the insurer after a loss Coverage provided by an Insurer's required assignment of rights of recovery -The Answer Is Subrogation