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2044 Module 3 quiz

Terms in this set (15)

In the Conditions section of an insurance policy the Duties After Loss provision states which if any of the following:
Statement One: "Give prompt notice to us or our agent"
Statement Two: "Cooperate with us in the investigation of a claim
Both Statements are correct
In arbitration, the opposing parties to a dispute each submit their evidence to a ___________ agreed upon third party, called an arbitrator.
mutually
In the event that an insured and insurer do not agree on the amount of loss in a claim:
Statement One: either party may request the appraisal of loss under the Appraisal Clause
Statement Two: the appraisal applies to all areas under dispute
Only Statement One is correct
Section I Exclusions in the ISO HO 00 03 05 11 policy form state: "We do not insure for loss caused directly or ___________ by any of the following.Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss."
Indirectly

Section I Exclusions in the ISO HO 00 03 05 11 policy form state: "We do not insure for loss caused directly or indirectly by any of the following. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss."
A typical "Other Insurance" clause in an insurance policy states: "Our share is the proportion that our limit of liability bears to the total of all applicable limits." What type of "Other Insurance" clause is this?
Pro-rata:

The policy language "Our share is the proportion that our limit of liability bears to the total of all applicablelimits" is a pro-rata Other Insurance clause.
Supplemental Payments include all but which of the following?
punitive damages

Supplementary payments include (with limitations) the cost of bail bonds, premiums on appeal bonds, interest accrued after a rendered judgment, loss of earnings due to attendance at hearings or trails by the insured; and other reasonable expenses incurred at the insurance company's request.
Cancellation Provisions in insurance policies allow who to "cancel" an insurance policy?
Cancellation Provisions in insurance policies limit the cancelling party to the named insured show in the Declarations
One of the primary "obligations" of an insurance company is to act in _________________ and ____________________ with the insured.
good faith, fair dealing
Mortgage Companies are protected in the Conditions section of the insurance policy, "__________ clause":
Mortgage Clause
All of the following are "obligations" of the insurance company EXCEPT.

A)good faith and fair dealing with the insured
B)defense of the insured in the event of a lawsuit
C)reasonable malfeasence
D)timely process of an insured claim
Reasonable malfeasence

The policy language places "obligations" on behalf of the insurance company such as:good faith and fair dealing with the insured; defense of the insured in the event of a lawsuit;timely processing of an insured claim; prompt notice for the declination of any claim;opportunity for third party appraisal in the event of a disputed property claim;opportunity for mediation; proper notice of renewal, non-renewal, or cancellation of policy;refund of premium in the event of a cancellation; and procurement of a policy, policy.
What precipitated the Terrorism Risk Insurance Act?
9/11
As regards policy "exclusions" typical policy language states: We do not insure for _____ caused directly or indirectly by any of the following. Such ______ is excluded regardless of any other cause or event contributing concurrently or in any sequence to the ____."
LOSS
The "liberalization clause" states "If we make a change which __________ coverage under this edition of our policy without additional premium charge, that change will automatically apply to your insurance as of the date we implement the change in your state provided that this implementation falls within 60 days prior to or during the policy period stated in the Declarations.
Broadens
The insured had their television, DVD player, and all of their home theater components stolen the television and equipment was more than ten years of age. The insurance company has paid the insured for "brand new equipment"without applying any depreciation. What loss settlement provision was applied?
Replacement Cost Value
In the Conditions section of an insurance policy the Duties After Loss provision states which if any of the following: Statement One: "Give prompt notice to us or our agent" Statement Two: "Cooperate with us in the investigation of a claim"
both statements are correct
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