Policy Provisions and Contract Law Quiz Questions
exclusions
the section of an insurance policy that details what perils are not insured against and what persons are not insured is known as the:
proof of loss
a sworn statement that must usually be furnished by the insured to an insurer before any loss under a policy can be paid
proof of loss
before an insurer will pay any loss under a policy, what is usually required from the insured?
how parties to the contract must act following a loss
the policy conditions define?
in writing
the proof of loss must be
Legal and not against public policy
For a contract to be enforceable by law, the purpose of the contract must be
insuring agreement
all of the following are conditions commonly found in the insurance policy except? -insuring agreement -cancellation and non renewal -subrogation -appraisal
provisions
all of the following are considered parts of the policy structure except: -provisions -exclusions -insuring clause -conditions
exclusions
all of the following are found in the declarations section of a policy except:
be fair in underwriting and pay covered losses
in return for premium, an insurance company must:
insureds
persons covered under an insurance policy, whether named or not
a statement that earthquake damage is not covered
the declarations page of the homeowners policy provides all of the following info except:
renewal dats
what type of information would be found in a policy's insuring agreement?
first named insured
which of the following would be named on the declarations page of a property or liability policy?
the applicants marital status
which of the following would not be considered a source of insurability information by an insurer
the applicant has a prior felony conviction
which of the following would quality as a competent party in the insurance contract?
additional coverage
which part of an insurance policy covers claim related expense, reasonable express incurred by an insured to protect damaged property from further loss, or defense expenses?
insuring agreement
The part of the insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the
conditions
because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements except
when an insurer's underwriter approves coverage
in forming an insurance contract, when does acceptance usually occur?
an applicant submits an application to the insurer
in insurance, an offer is usually made when:
regulates consumer reports
the federal fair credit reporting act.....
if it is intentional and material
when would a misrepresentation on the insurance application be considered fraud?
assignment
which of the following describes the transfer of a legal right or interest in an insurance policy?
the application given to a prospective insured
which of the following id not the consideration in a policy
declarations
which of the following is a mandatory part of an insurance policy that varies with each individual policy?
arbitration
which of the following is a method of claim settlement used fin casualty insurance when the insured and insurer cannot agree on how to settle a claim?
counteroffer
which of the following is not an essential element of an insurance contract?
insured
who is responsible for filling out a notice of claim form?
the homeowner will need to get written consent from the insurer before the policy can be reassigned
a homeowner sells his house to a friend. the friend wants to keep the homeowners current policy in effect. under the assignment provision, which of the following is most likely?
additional insured
a person who is not named as an insured on the declarations page of a policy but is protected by the policy is known as the:
pro rata liability
the other insurance provision that limits the liability of the insurer to a portion of the loss no greater than the amount the insurer bears to all the insurance covering the property is called/
declarations
the part of a property policy that show the amount of insurance, premium and policy term is the...
declarations
the part of a property policy that shows the amount of insurance, premium, and policy term is the
indemnity
the pro rata liability clause is designed to protect the principle of?
other insurance
what insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk?
consideration
when an insured makes truthful statements on the application for insurance and pays the required premium, it is known as?
duties after loss
which of the following provisions requires that the insured protects the damaged property from further damage, cooperates with the insurer in settling the loss, and submits to the insurer signed proof of loss within a specified period time?
appraisal
a policy condition that stipulates how the amount of damaged or lost property will be determined if the insured and the principal do not agree on the value of a property loss is known as: