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Principles of Insurance - Exam 2 Questions and Answers
with Solutions UPDATED!!!
Aleatory Contract - ANSWER One in which the values exchanged
may not be equal but depend on an uncertain event.
Coinsurance Clause - ANSWER in a property insurance contract
encourages the insured to insure the property to a stated
percentage of its insurable value. If the coinsurance
requirement is not met at the time of loss, the insured must
share in the loss as a coinsurer.
Conditional Contract - ANSWER Conditions are provisions
inserted in an insurance policy that qualify or place limitations
on the insurer's promise to perform; the insurer's obligation to
pay a claim depends on whether the insured or beneficiary has
complied with all policy conditions.
Contract of Adhesion - ANSWER The insured must accept the
entire contract, with all of its terms and conditions; if there is
ambiguity in the contract it is construed against the insurer.
Principles of Insurance - Exam 2 Questions and Answers
with Solutions UPDATED!!!
Aleatory Contract - ANSWER One in which the values exchanged
may not be equal but depend on an uncertain event.
Coinsurance Clause - ANSWER in a property insurance contract
encourages the insured to insure the property to a stated
percentage of its insurable value. If the coinsurance
requirement is not met at the time of loss, the insured must
share in the loss as a coinsurer.
Conditional Contract - ANSWER Conditions are provisions
inserted in an insurance policy that qualify or place limitations
on the insurer's promise to perform; the insurer's obligation to
pay a claim depends on whether the insured or beneficiary has
complied with all policy conditions.
Contract of Adhesion - ANSWER The insured must accept the
entire contract, with all of its terms and conditions; if there is
ambiguity in the contract it is construed against the insurer.
