Policy provisions and contract law QUIZ
Proof of loss
Before an insurer will pay loss under a policy, what is usually required from the insured?
Which of the following is an essential element of an insurance contract?
Consideration )Agreement Legal purpose
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following
Consideration. Legal purpose Offer and acceptance
When would a misrepresentation on the insurance application be considered fraud?
If it is intentional and material
An insurance contract must contain al of thf felowing
Offer and acceptance. Consideration. Competent parties
offer is usually made when
The completed application is submitted.
Pro rata liability.
The other insurance provision that limits the liability of the insurer to a portion of the loss 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
Conditions.
The part of the policy that sets forth the rules of conduct, duties, and obligations of the parties is called the
Appraisal clause
Which of the following clauses establishes the procedure for determining the amount of a loss when insurer and the insured cannot agree on the value of property or amount of loss?
The Fair Credit Reporting Act
Which of the following protects consumers against the circulation of inaccurate or obsolete personal financial information?
The homeowner will need to get written consent from the insurer before the policy can be reassigned.
A homeowner sells his house to a friend. The friend wants to keep the homeowner's current policy in effect. Under the assignment provision, which of the following is most likely?
Concealment
An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of
Insureds.
Persons covered under an insurance policy, whether named or not, are known as the
Duties of the insurer found in property policy conditions include
Provide advance notice of cancellation Return any premiums to the insured. Pay covered losses
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
The declarations page of the homeowners policy provides all of the following
What deductible amount applies to each loss covered by the policy. The amount of premium charged for each coverage. The insured's address.
Additional coverage
part of an insurance policy covers claims-related expenses, reasonable exp enses incurred insured to protect damaged property from further loss, or defense expenses?
material misrepresentation?
A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
Appraisal clause
clauses 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?