Unit 3 Quiz

Todd and Marie have insurance protection for their home with the policy deductible of $500 one night, if thunderstorm knocks a tree onto the roof and causes $2500 in damage how much money will insurance company pay to Todd and Mary to fix their roof?

$2,000

When an insured decides to cancel an insurance policy before the expiration date, be on earn premium is return on

A short rate basis

Which provision specifies that an insurance policy may not be transferred to anyone else without the written consent of the insurer and less the named insured dies?

Assignment provision

Which of the following is not a part of the structure of a property or casualty insurance policy?

Explanations

Which of the following terms describes the person listed first on the declarations page of a policy where there is more than one named insured?

First-named insured

Which of the following is NOT a type of merit rating that modifies the manual premium on the basis of the insured's loss experience?

Manual rating

Marcus has two policies that cover his $20,000 loss. Company A will be the first $15,000, and Company B is the remainder. In this example company A's policy is considered

Primary insurance

Factors that determine premium rate set by insurance companies include loss costs, operating expenses, claims handling costs, and

Profits

What type of insurance policy protects the insured from the loss caused by damage to cover the property by a covered peril?

Property insurance policy

Greg's policy states that a loss will not be covered unless it occurs within the United States or Canada. What is the name of this provision in his policy?

The policy territory provision