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
A sworn written statement that must be furnished by the insurer before any loss under a policy can be paid is called
Proof of loss
Which is NOT the consideration in a policy?
The application given to a prospective insured
What is a material misrepresentation
A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
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
Additional insured
An insurance contract must contain all of the following to be considered legally binding EXCEPT
Beneficiary's consent
What term best describes the act of withholding material information that would be crucial to an underwriting decision
Concealment
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
Consideration
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as
Consideration
All of the following are found in the declarations section of a policy EXCEPT
Exclusion
All of the following are found in the declarations section of a policy EXCEPT
Exclusions
The section of an insurance policy that details what perils are not insured against and what persons are not insured is known as the
Exclusions
All of the following are conditions commonly found in the insurance policy EXCEPT
Insuring agreement
For a contract to be enforceable by law, the purpose of the contract must be
Legal and not against public policy
All of the following are considered parts of the policy structure EXCEPT
Provisions
The Federal Fair Credit Reporting Act
Regulates consumer reports
What type of information would be found in a policy's insuring agreement
Renewal dates
The part of a policy that clarifies terms in the policy is the
Definitions
The Gramm-Leach-Billey Act was passed to
Protect private customer information filled with a financial institution
When a mortgagee is named in a mortgagee clause attached to a fire or other direct damage policy
All of the above
Which of the following is NOT the consideration part of the policy?
An application given to a prospective insured
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
The part of the policy that sets forth the rules of conduct, duties, and obligations of the parties is called the
Conditions
The policy conditions define
How parties to the contract must act following a loss.
Who is responsible for filling out a notice of claim form
Insured