personal lines exam prep

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helps to prep you with the california personal lines insurance license exam.

Actual cash value is defined as.....

replacement cost minus depreciation.

Fine arts are typically insured on an ______ ______ _____, whereby an insured, and insured agree, at time of insuring, on an amount of insurance to be paid at the event of a loss.

Agreed Value Basis

The owner of clothing to be cleaned would be a ______. The dry cleaner cleaning the clothes is the ______.

Bailor, Bailee

The insurer has the right to take possession of damaged property after payment of loss.

True

The ______ covered in a property policy are always in the insuring agreement.

Perils

Additional living expense is an indirect loss, not a direct loss.

True

When property is covered on a ___________ ____ _____, there is no deduction for depriciation.

Replacement Cost Basis

____ _____ ________, cover risks of direct physical loss and the perils that are not named.

Open Peril Policies

The insuring agreement contains the insurer's promises to the insured. The insureds name is found in the ____________.

Declarations

The insured is required to Personally make repairs to their property.

False-, The insured may choose who will make the repairs.

____________ is a legal process against a third party, not the insured.

Subrogation

______________ is a situation that occurs when two policies covering the same property contain different coverages.

Nonconcurrency

A property purchased ten years ago for $100,000 has a replacement value today of $200,000. it is depriciated 3% each year. what is todays actual cash value?

$140,000

The _________ ______ states the procedure to be followed if the insured and insurer disagree on the amount of loss.

Appraisal Clause

_____ ________ policies provide coverage for only the perils listed in the policy.

Named Peril

The insuring clause personalizes the policy as too, who and what are insured.

False-, The declarations personalize the policy.

The loss under a property policy states that the insured cannot abandon property to the insurer.

True

A ______ ____ must be caused by an insured peril that set the loss in motion.

Direct loss

The perils that are not covered are in the __________ of a property policy.

Exclusions

In property and casualty insurance, when a form is attached to further define certain policy provisions or conditions, it is known as:

An Endorsement

Nonconcurrency means:

Not The Same

The legal representative of the insured is also, an insured under a property policy.

True

____________ are used to broaden, as well as restrict coverage.

Endorsements

After payment for loss, the _______ has the right to the salvage.

Insurer

The basic form covers the perils of ____, _________, and ________ _________.

Fire, Lightning and Internal Explosion

Coverage C may be extended to cover property of guests and servants.

True

A farmhouse does not fit the eligibility requirements of the dwelling program.

True

There is no _____ coverage in a dwelling policy.

Flood

Trees, shrubs, and plants are covered for up to $____ for any one item or ____% of coverage A.

$500 and 5%

Under a special dwelling policy, if an insured dies, coverage continues for the insured's legal representatives.

True

Coverage C of the special dwelling form, an insured's ____ is not covered under the policy.

Pet

The _______ ____ covers the dwelling for open perils, and the contents for the broad form perils.

Special Form

The homeowners policy specifically excludes property of roomers, and boarders.

True

A homeowners policy excludes coverage for other structures that are used in whole or in part for ________.

Business

There is no coverage for the dwelling under an HO-4, only ________ coverage.

Contents

Under a HO-3 policy when property is removed because it is endangered by a covered peril, the coverage is open peril for _____ days.

30

earth movement is excluded from all __________ ________.

Homeowners Policies

A limit of $_____ applies to a boat, it trailer, motor and equipment under section 1 of a homeowners policy.

$1,500

The scheduled personal property endoresment has no deductible.

True

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