Chapter 9
If an insured and the insured cannot come to an agreement as to the value of damaged property, they must follow which provision of the policy?
Appraisal
Which of the following is the portion of a loss that is considered the responsibility of the insured?
Deductible
What are the 2 types of losses?
Direct and consequential
Which of the following are perils that are not insured against?
Exclusion
Which of the following is not among the 4 classes of inland marine risk?
Foreign shipments
Which of the following homeowners coverage forms applies to condominium unit owners?
HO-6
Personal loans property policies are designed to meet the needs of
Individuals
Exclusions in insurance policies are
Perils that are not covered
Which of the following must be received by the received by the insurer before a claim will be paid?
Proof of loss
This type of liability refers to damage caused by defective products, even when the manufacturer's fault or negligence cannot be proven
Strict
Which of the following defines a peril?
cause of loss
What type of property insurance is available to businesses?
commercial lines
Which section of a property policy outlines what or who will not be insured?
exclusions
a fire is an example of a
peril
What types of liability is the most strongly associated with dangerous operations and hazardous activities?
Absolute
which of the following statements is true about bussinessowners policies
BOP's may be customized by adding optional coverages
an insurer personal property is damaged by a coverage peril. Under a dwelling policy, this loss would be insured under
coverage c
A portion of a lost that must be covered by the insured is called a
deductible
Which policy provision outlines the specific responsibilities of the insured in the event of a loss?
duties of the insured
Which of the following commercial property coverage forms is used to insure businesses that cannot afford to be closed for repairs?
extra expense
Under the commercial property basic form, all of the following causes of loss will be covered except
falling objects
personal lines property policies are designed to meet the needs of
individuals
Which of the following terms is defined as the deduction of value of the person or property insured in a policy?
loss
Which of the following terms is defined as the reduction of value of the person or property insured in a policy
loss
In property and casualty insurance, assignments of policies are valid
only if the insurer has given prior written consent
An employer can be held responsible for the negligent acts of its employees. This is an example of what type of liability?
vicarious
In which type of liability is one person responsible for the acts of another?
vicarious
which of the following homeowners coverage forms applies to condominium unit owners?
HO-6
In the event that multiply policies cover the same loss, which provision states that each policy will pay the same portion of its limits to the overall coverage?
pro rata
Which property policy provision states that if the insurer and the insured cannot agree on the value of the property, each party may choose an independent appraiser?
Appraisal
Which type of liability would be associated with handling explosives?
Absolute
which type of liability is most strongly associated with dangerous operations and hazardous activities?
Absolute
types of liability
Absolute, Strict, Vicarious. EXCEPT revocable
Which provision states that the legal right or interest in a policy may be transferred?
Assignment
In property and casualty review insurance, assignments of policies are valid
only if the insurer has given prior written consent
an insurer has two property insurance policies. The insurance property is damaged, and the damage is covered loss under both policies. Which policy provision will explain how each policy will respond?
other insurance
What is the purpose of business "income coverage" in a commercial property policy?
To protect against the loss of profits and expenses that must continue to be paid during restoration following a direct lost to the premises