examfx property and casualty basics questions with complete solutions

An insured has four separate but identical policies written by different insurers to cover her $100,000 building. Each policy is written for $100,000, and each has the pro rata liability other insurance clause. In the event of a total loss to the building, what would each insurer pay? correct answer: Each policy will pay $25,000 of the loss. All of the following are conditions commonly found in the insurance policy EXCEPT correct answer: *insuring agreement A building is insured, but no one has lived or worked in it for 10 years. The building is completely empty of any furniture or personal belongings. From an insurance standpoint, the building is considered correct answer: vacant The Pennsylvania Property and Casualty Insurance Guaranty Association provides protection to insureds in the event of correct answer: Insurance company insolvency. B The part of a property policy that shows the amount of insurance, premium, and policy term is the correct answer: declarations Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called correct answer: specific A deli owner has a businessowners liability policy. When a customer slipped and hurt herself at the deli, the liability policy paid for medical expenses. The customer, however, is now suing the business owner because she claims there was no caution sign warning her that the floor was wet. What is the insurer obligated to do? correct answer: Pay to defend the policyowner in the lawsuit because liability coverage contains a duty-to-defend provision Which of the following is defined as the cost to replace damaged property with less expensive and more modern construction or equipment? correct answer: Functional replacement cost According to the standard mortgage clause, who has the right to bring a suit in their own name to recover damages, pay policy premiums, and submit a proof of loss? correct answer: Mortgagee Under contributory negligence, when an individual is found to have contributed to his or her own loss in any way, another party