Contracts
A contract in which there is an exchange of unequal amounts or value is called a/an ___________.
Aleatory Contract
What loss settlement option is available on a DP1 policy?
Actual Cash Value (ACV)- The cost of replacement minus depreciation.
In relation to an insurance contract the term Representation can be defined as...
Representation is a statement believed to be true to the best of one's knowledge but are not guaranteed to be true.
what is the coverage distance for Business personal Property?
Business personal property is covered on or within 100 feet of the business premises.
True or False: Grave Makers and Mausoleums are covered up to $5000 if damaged by a covered peril.
True!
Which part of the insurance contact details the coverages provided by the policy?
The Declarations.
This Homeowners form is used to provide coverage for Historic or older homes when the market value is considerably lower than the replacement cost of the property...
HO-8 Modified coverage form.
This term is defined as, the failure to use the care that a reasonable, prudent person would under the same or similar circumstances
Negligence
A Business Owner's Policy (BOP) Has a fire Department service charge of ________
$2500
How many years after an injury occurs can a covered party collect medical payments?
In relation to an insurance contract a Warranty is defined as______?
A warranty is an absolutely true statement upon which the validity of the insurance policy depends.
What is the maximum limit for any trees, shrubs or plants on an HO-3 (Special Form) policy
A maximum of $500 per tree, shrub, or plant, and a maximum per loss of 5% of the amount of coverage on the dwelling.
This is a Temporary Federal Program intended to share the risk of loss from terrorist attacks with insurers....
Terrorism Risk Insurance Act (TRIA)
On a Commercial Package Policy (CPP) newly acquired or constructed property is covered for how many days?
30 Days.
Newly acquired or constructed property — Coverage is for 30 days for newly acquired buildings and personal property that are similar in use to the property insured. This extension will pay up to $250,000 for newly acquired buildings, and up to $100,000 for business' personal property.
While John was walking alone at night he was held at gunpoint and his wallet, and his watch were stolen. John's watch was gift from his grandfather and was an antique Rolex appraised at $19,000. Was this a Burglary or robbery? How much would John's watch be covered for under his H03 policy?
Unfortunately, John was a victim of a robbery and since his watch was lost to theft he would only be covered up to $1500.
What are the Elements of a Legal Contract?
Agreement, Consideration, Competent parties And Legal Purpose
Additional Living Expenses is a coverage that would need to be added via endorsement on which Dwelling Policy (DP) form?
DP1- Basic Form
This act prevents an insurance company from disclosing nonpublic personal information to a nonaffiliated third party except for certain reasons...
Gramm-Leach-Bliley Act
All Volcanic eruptions that occur within _______ time period are considered one event on a commercial policy.
168-hour period.
Barbra Johnson lives in Florida, it is hurricane season and a storm is on the horizon. Barbra will be out of town during this time and decided in order to protect her lawn mower and other personal property normally stored in her shed, she will take them to her sister Jenny's house. How many days will coverage extend to Barbra's personal property at Jenny's house?
30 days for property removed from the promise to protect it from further loss.
The insurers promise to pay for losses is refer to as_________?
Insurer's Consideration.
***Insured's consideration is the payment of premium and statements on the application.
What are the parts of the standard Homeowner Policy Form?
Section I
A- dwelling, B-Other Structure, C- Personal Property, D-Loss of Use
Section II
E- personal Property, F- Medical Payments to others
This type of Liability is imposed upon a person or company engaged in hazardous or potentially dangerous business who, by negligence or by an omission, causes harm or injury to another person or property
Absolute Liability
What is the difference between Motor Truck Cargo Floater and Inland Marine Floater?
Motor Truck Cargo Floater specifically covers 'Goods' while in transit by truck, rails or other carriers. It covers mainly the owner's interest.
Inland Marine Floater covers property that's in transit or off premises, like Equipment, Tools or Goods. (May add Liability cover with endorsement)
Tracy has two auto policies that cover her car. Policy A has limits of 100/300/100 and policy B covers 50/100/50. Tracy got into an auto accident where she ran into her neighbor's parked car causing $25,000 worth of damage how much is Policy A responsible for?
Pro-Rata Formula: Insurer A’s responsibility = (A’s Cov ÷ A+B Cov) x Amount of loss
($100,000 ÷ $150,000) x $25000 = $16,666