P & C unit 4 checkpoint

The insured had a covered loss in which the replacement cost of the item is $5,000: current market value is $4,500; depreciation is $2,000; and the repair cost is $3,500. How much will be paid on this claim if it is settled on an actual cash value (ACV) basis?

$3,000

Which of the following is NOT included on the basic cause of loss form?

Weight of ice, snow, or sleet

Which of the following is NOT covered by broad peril coverage?

Rhonda had ceiling damage in her basement after her upstairs faucet had been leaking for over 2 months.

The insured has a home with a replacement cost of $200,000 but has insured it for only $100,000. An 80% coinsurance provision is present in the policy. When an $80,000 loss occurs, the policy will pay

$50,000

Adam has a blanket policy on his house. Which of the following best describes the items that are covered under this policy?

All of the contents in his house are covered.

Which of the following is NOT another name for an open peril policy?

Named peril policy

Bernie and his insurer came up with a price value of his grandfather's baseball card collection that he now owns. If a loss occurs to this collection, what will be the amount that the insurer will pay?

The agreed value

Which of the following statements about loss valuation is NOT correct?

The deductible increases any amount after the loss has been valued.

All of the following are examples of an indirect loss EXCEPT

living room furniture and artwork destroyed by a fire

Appliances, clothing, tools, furniture, and electronics are examples of

personal property

An insured may be reimbursed on a damaged items repair cost when the repair cost is less than

the actual cash value

As it relates to property insurance, the person or business that has temporary possession of someone else's property is known as

the bailee

Mr. and Mrs. Kim own a home in Chicago and a lake home in Wisconsin. Every year, they travel to their lake home for Memorial Day weekend. While the Kims are at the lake home, their home in Chicago is considered to be

unoccupied

Renee has a policy that covers all risks of direct physical loss except for flooding because it is specifically excluded. Which coverage form does Renee most likely have?

Special (open) peril coverage

Which of the following statements about the appraisal condition NOT correct?

The insurer chooses an appraiser for each party.

Which of the following conditions is used to resolve other areas of disagreement besides value of loss between the insured and insurance company and is typically used before an insured seeks legal advice?

The arbitration condition