Pt 2

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

Provisions

All of the following are considered parts of the policy structure except

Exclusions

All of the following are found in the declarations section of a policy except the

Concealment

An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage this is an example of

Beneficiary's consent

An insurance contract must contain all of the following to be considered legally binding except

Consideration

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy which of the following insurance principles has the insurer violated

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

Insuring Agreement

Describes the covered perils, or risks assumed, or nature of coverage, or makes some reference to the contractual agreement between insurer and insured.

Notify the insured in the event of financial difficulty

Duties of the insurer found in property policy conditions include all of the following EXCEPT Return any premiums to the insured. Notify the insured in the event of financial difficulty. Pay covered losses. Provide advance notice of cancellation.

Legal and not against public policy

For a contract to be enforceable by law the purpose of the contract must be

When an insurer 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

Arbitration

Method of claim settlement used in casualty insurance when the insured and insurer cannot agree on how to settle a claim

Arbitration

Method of claim settlement used when the insured and insurer cannot agree upon the amount of the loss.

Insureds

Persons covered under an insurance policy whether named or not are known as the

Considered true to the best of the applicant's knowledge

Representations are written or oral statements made by the applicant that are

Regulates consumer reports

The federal fair credit reporting act

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

definitions

The part of a policy that clarifies terms in the policy is the

Declarations

The part of a property policy that shows the amount of insurance premium and policy term is the

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

The part of the policy that sets forth the rules of conduct duties and obligations of the parties is called the

How parties to the contract must act following a loss.

The policy conditions define

Indemnity

The pro rata liability clause is designed to protect the principal of

I'm writing

The proof of loss statement must be

Exclusions

The section of an insurance policy that details what perils are not insured against and what persons are not insured

Gramm-Leach-Bliley Act

What act protects customer information filed with a financial institution

The applicants maritial status

Which of the following would not be considered a source of insurability information by an insurer

Insured

Who is responsible for filling out a notice of claim form

Appraisal Clause

establishes the procedure for determining the amount of a loss when the insurer and the insured cannot agree on the value of property or amount of loss

Additional Coverage

provides an additional amount of coverage for specific loss expense, at no additional premium

Concealment

the withholding of information that will result in an imprecise underwriting decision

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

Warranty

A statement guaranteed to be true

Material Misrepresentations

A statement that, if discovered, would alter the underwriting decision of the insurance company.

Be fair in underwriting and pay covered losses.

In return for premium an insurance company must

Be fair in underwriting and pay covered losses.

In return for premium, an insurance company must

Cancellation

The termination of an in-force insurance policy by either the insured or the insurer prior to the expiration date shown in the policy.

Other insurance

What insurance policy provision defined how the policy will respond if there is more than one insurance policy written on the same risk

Concealment

What term best describes the act of withholding material information that would be crucial to an an understanding decision

Renewal dates

What type of information would be found in a policy's insuring agreement?

Nonrenewal

When an insurance policy does not offer a continuation at its expiration date, it is considered a

Consideration

When an insured makes truthful statements on the application for insurance and pays the required premium it is known as which of the following

If it is intentional and material

When would a misrepresentation on the insurance application be considered fraud

TRIA

Which of the following acts created a federal program that would share the risk of loss from potential terrorize attacks with the insurance industry

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 is 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 in casualty insurance when the insured and insurer cannot agree on how to settle a claim

warranty

Which of the following is a statement that is guaranteed to be true and if untrue may breach an insurance contract

Counteroffer

Which of the following is not an essential element of an insurance contract

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 of time

First named insured

Which of the following would be named on the declarations page of a property or liability policy?

Endorsements

Which of the following would modify the original insurance contract by either adding or removing coverage

endorsements

Which of the following would modify the original insurance contract by either adding or removing coverage

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

a sworn statement that must usually be furnished by the insured to an insurer before any loss under a policy can be paid