Policy Provisions and Contract Law

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?

Pro rata liability

All of the following are considered parts of the policy structure EXCEPT?

Provisions

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following terms best describes what the insurer has violated?

Consideration

A person who is not named as an insured on the declaration page of a policy but is protected by the policy, usually in regard to a specific interest is known as a ?

Additional Insured

Which part of an insurance policy covers claims related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses?

Additional coverage

Termination of an in-force insurance policy prior to the expiration date shown in the policy is known as?

Cancellation

The pro rata liability clause is designed to protect the principle of ?

Indemnity

Under what conditions would a contract between an insurer and a prospective insured be legal?

The applicant has been convicted of a felony

An insured intentionally did not disclose a material fact on an application for insurance. This would be considered?

Concealment

Which of the following is a mandatory part of an insurance policy that varies with each individual policy?

Declarations

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

Concealment

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?

Conditions

All of the following are conditions commonly found in the insurance policy EXCEPT?

Insuring agreement

All of the following are found in the declarations section of a policy EXCEPT the ?

Exclusions