P&c part 3

Which of the following situation would be best described as a pure risk?

An insured purchasing an HO-6 to insure their new condo.

B owns a home with a basic Dwelling policy (DP1) and rents it outs to a family. One day, a burglar tries to break into the house causing 2,000 of damage. After submitting the claim, B is informed that since burglar damage is not covered under the policy, the damage will not be paid by the policy. B policy is a:

Named peril policy

Which of the following would be an example of a physical hazard?

A person leaves their tools all the house after completing a home improvement job.

Which of the following best describes risk?

An uncertain possibility that loss may or may not occur.

In a property policy, the mortgage is defined as the?

Lender

The stated maximum that an insurer will pay on a loss that is listed in the declarations is known as?

Limited of lability

One summer day n waters his front lawn and turns off the hose when he is finished although N is done, he decides to leave the hose across the sidewalk until tomorrow, when he will water the lawn again at night, T is walking their dog, trips over the hose and falls but suffers no injuries. Which of the following provisions will establish No's liability towards T?

None of the answers listed

If the insurer finds a Material Misrepresentation during the underwriting process:

The insurer can refuse to issue any contract that would have been made.

The effect of a deductible on the premium is?

The lower the deductible is, the higher the premium will be

The starting point in an insurance transaction that is sent to underwriting before coverage can being is known as:

Policy application

An insured purchases a rental property for 250,000, it's replacement cost. He insures it for 150,000 under a property coverage form with an 80 percent coinsurance clause with a 100 deductible. In the event of a 100,000 loss how much will the insurer pay on the claim?

74,900

P has just purchased a house. In the backyard, P has a patio with a deck and a big in-ground pool. From an insurance standpoint P's pool is considered to be a(an):

Absolute liability

Which of the following is correct regarding stated value?

All of the answers listed State values will be used to determine premium amount The company will valuate based upon cost to repair property or stated value, whichever is less at the time the claim is filed The lower the stated value in the contract, the lower the premium will be for the policy

All of the following is correct regarding speculative risk except?

Certain speculative risks involved no chance to gain when loss occurs