3 Policy Provisions Quiz

The declarations state important facts about the particular policy, such as these:

-Policy or policy number -Policy inception and expiration dates (policy period) -Name of the insurer -Name of the insurance agent -Name of the insured(s) -Names of persons or organizations whose additional interests are covered (for example, a mortgagee, a loss payee, or an additional insured) -Mailing address of the insured

Many insurance policies include secondary or supplemental coverages in addition to the main coverage in the insuring agreement. The terms "coverage extensions" and "additional coverages" are often used in what type of coverages? -Property -Liability -Auto

-Property

A policy provision is

A policy provision is a contractual term included in an insurance policy that specifies requirements or clarifies intended meaning.

Insuring agreement

A statement in an insurance policy that the insurer will, under described circumstances, make a loss payment or provide a service.

The numbers and edition dates of all attached forms and endorsements are found in the policy Select one: A. Declarations. B. Insuring agreements. C. Conditions. D. Miscellaneous provisions.

A. Declarations.

The property casualty insurance policy provisions that indicate who or what is covered, and where and when coverage applies, are found in the Select one: A. Declarations. B. Definitions. C. Insuring agreements. D. Miscellaneous provisions.

A. Declarations.

One purpose of exclusions is to eliminate coverages that are not needed by the typical purchaser of a given line of insurance. Elimination of such coverages avoids the situation of Select one: A. Litigated coverage for most insureds. B. All insureds having to share the costs of covering loss exposures that relatively few insureds have. C. Insuring uninsurable exposures. D. Increasing the likelihood of overlapping coverages or duplications of coverages.

B. All insureds having to share the costs of covering loss exposures that relatively few insureds have.

Which one of the following categories of insurance policy provisions outlines what is covered and where and when coverage applies? Select one: A. Miscellaneous provisions B. Declarations C. Conditions D. Insuring agreements

B. Declarations

One of the primary purposes of exclusions is to eliminate coverage for loss exposures that are considered uninsurable by private insurers. In addition to the peril of war, which one of the following is a loss exposure that most private insurers consider to be uninsurable? Select one: A. Loss of admissions (i.e. to a concert or other attended event) B. Normal wear and tear of property C. Environmental pollution D. Professional malpractice

B. Normal wear and tear of property

Exclusions in insurance policies generally serve all of the following basic purposes, EXCEPT: Select one: A. Assist in keeping premiums reasonable B. Outline steps the insured needs to take to enforce coverage. C. Eliminate coverages requiring special treatment D. Assist in managing moral and morale hazards

B. Outline steps the insured needs to take to enforce coverage.

Frank's insurer, in settling a claim on Frank's behalf, has asked Frank to attend hearings which require him to take several days off from his job and to travel considerable distances. If Frank refuses to cooperate with the insurer, his is in violation of his policy's Select one: A. Insuring agreements. B. Supplemental coverages. C. Conditions. D. Coverage provisions.

C. Conditions.

The term "insuring agreement" is usually applied to statements that introduce a policy's Select one: A. Premium payment plan. B. Endorsement section. C. Coverage section. D. Arbitration procedures.

C. Coverage section.

Which one of the following would help an adjuster determine if the policy was in effect at the time of loss? Select one: A. Insuring agreement B. Miscellaneous provisions C. Declarations D. Premium notice

C. Declarations

Edna, who participates in a homeowners' reciprocal exchange knows that the members of the exchange insure members' loss exposures. A policy issued by the reciprocal insurer specifies the attorney-in-fact's authority to implement its powers on behalf of Edna and the other members of the exchange. Information regarding the powers of the attorney-in-fact is most likely to be found in Edna's policy's Select one: A. Conditions. B. Declarations. C. Miscellaneous provisions. D. Insuring agreement.

C. Miscellaneous provisions.

In commercial property insurance, the special-form coverage provides protection against causes of loss that are Select one: A. Specifically excluded by other provisions within the same policy. B. Generally uninsurable. C. Not specifically excluded. D. Unique and complex in nature.

C. Not specifically excluded.

Insurance policy rating information and policy premium are found in which one of the following categories of insurance policy provisions? Select one: A. Conditions B. Insuring agreements C. Miscellaneous provisions D. Declarations

D. Declarations

In a policy's insuring agreement, the insurer promises to pay to the insured, to pay on behalf of the insured, and to Select one: A. Educate the insured regarding policy language. B. Provide full coverage for any exposure. C. Pay for all losses. D. Defend the insured.

D. Defend the insured.

Auto insured Tom was surprised when he was invited to his mutual auto insurer's election of its board of directors. Tom would most likely find information relating to this type of election in his policy's Select one: A. Insuring agreement. B. Conditions. C. Declarations. D. Miscellaneous provisions.

D. Miscellaneous provisions.

Which one of the following statements is correct with respect to insurance policy exclusions? Select one: A. Its use has little or no impact on the policy premium an insurer must charge. B. Its use does not help insurers manage moral and morale hazards. C. Its purpose is to eliminate coverage, not to clarify the coverage granted. D. One of its purposes is to eliminate coverages requiring special treatment.

D. One of its purposes is to eliminate coverages requiring special treatment.

What do miscellaneous provisions generally address?

Insurance policies often contain miscellaneous provisions that deal with the relationship between the insured and the insurer or help to establish working procedures for implementing the policy.

Undefined words and phrases are interpreted according to these rules of policy interpretation: a. Everyday words are given their ___ meanings. b. Technical words are given their ______ meanings. c. Words with an established legal meaning are given their ______ meanings.

Undefined words and phrases are interpreted according to these rules of policy interpretation: a. Everyday words are given their ordinary meanings. b. Technical words are given their technical meanings. c. Words with an established legal meaning are given their legal meanings.

Insuring agreements can be classified into two broad categories:

comprehensive and limited Insuring agreements can be classified into two broad categories: comprehensive and limited