CISR - PERSONAL LINES MISCELLANEOUS EXAM QUESTIONS
WITH COMPLETE SOLUTION
The Insuring Agreement
the company's commitment to protect the insured and includes a description of the
perils.
Vacant
A building with no physical contents and no occupants is said to be which of the
following?
Ilunoccupied
A building that contains furnishings or equipment, but has no occupants.
Specific, Scheduled and Blanket
The methods of writing property insurance limits.
Off-premises utility failure .
Is a common exclusion in eproperty policies.
Appraisal clause
states the procedure to be followed if the insured and insurer disagree on the
amount of loss.
An occurrence
is an accident that includes continuous or repeated exposure to the same general
harmful conditions.
The issuance of a binder
is the result of the acceptance of an offer.
Endorsements
are used to broaden, as well as restrict coverage.
Declarations
The ___________ is the part of a property policy that gives basic information such
as the named insured, a description of the property, the location of the property,
and the amount of premium.
No benefit to Bailee
This provision makes clear that the insurer has no obligation to a bailee, even if the
bailment is to the benefit of the insured.
specifies that coverage in the event of a claim will not benefit a person who is
moving the insured's property for a fee.
No benefit to Bailee
Choose the property insurance provision that best serves to prevent the
insured from collecting twice for the same loss?
, Subrogation
Liberalization
Other insurance
Indirect Loss
Subrogation
Subrogation
comes into play when a negligent third party is the cause of the loss. Since the
insurance company has paid the loss, it receives the insured's right of recovery
from the third party.
Loss of rent after a covered loss would be a
consequential loss or indirect loss.
Actual cash value may be defined as:
-Today's cost to replace or repair, minus depreciation
Cost to replace or repair the property valued at original purchase price,
minus depreciation
Cost to replace or repair the property at today's value
The depreciated value only
Actual Cash Value is replacement cost at the time of loss, minus depreciation.
A binder includes everything, except it does not specify the premium amount.
The Declarations of an actual policy would include the premium.
Binder
• specifies the perils covered
• specifies the effective date of coverage and amount of coverage
• specifies the premium amount
• specifies the insurer providing the coverage
When coverage applies to a property loss by all perils except those specifically
excluded, the policy is written on a(n) ___________ basis.
Agreed Amount
Named Peril
Open Peril
Valued Policy
Open peril
The Open Perils policy is very broad coverage in that it covers the risks of loss that
are not excluded, rather
a policy that is very broad coverage in that it covers the risks of loss that are
not excluded, rather.
The Open Perils
WITH COMPLETE SOLUTION
The Insuring Agreement
the company's commitment to protect the insured and includes a description of the
perils.
Vacant
A building with no physical contents and no occupants is said to be which of the
following?
Ilunoccupied
A building that contains furnishings or equipment, but has no occupants.
Specific, Scheduled and Blanket
The methods of writing property insurance limits.
Off-premises utility failure .
Is a common exclusion in eproperty policies.
Appraisal clause
states the procedure to be followed if the insured and insurer disagree on the
amount of loss.
An occurrence
is an accident that includes continuous or repeated exposure to the same general
harmful conditions.
The issuance of a binder
is the result of the acceptance of an offer.
Endorsements
are used to broaden, as well as restrict coverage.
Declarations
The ___________ is the part of a property policy that gives basic information such
as the named insured, a description of the property, the location of the property,
and the amount of premium.
No benefit to Bailee
This provision makes clear that the insurer has no obligation to a bailee, even if the
bailment is to the benefit of the insured.
specifies that coverage in the event of a claim will not benefit a person who is
moving the insured's property for a fee.
No benefit to Bailee
Choose the property insurance provision that best serves to prevent the
insured from collecting twice for the same loss?
, Subrogation
Liberalization
Other insurance
Indirect Loss
Subrogation
Subrogation
comes into play when a negligent third party is the cause of the loss. Since the
insurance company has paid the loss, it receives the insured's right of recovery
from the third party.
Loss of rent after a covered loss would be a
consequential loss or indirect loss.
Actual cash value may be defined as:
-Today's cost to replace or repair, minus depreciation
Cost to replace or repair the property valued at original purchase price,
minus depreciation
Cost to replace or repair the property at today's value
The depreciated value only
Actual Cash Value is replacement cost at the time of loss, minus depreciation.
A binder includes everything, except it does not specify the premium amount.
The Declarations of an actual policy would include the premium.
Binder
• specifies the perils covered
• specifies the effective date of coverage and amount of coverage
• specifies the premium amount
• specifies the insurer providing the coverage
When coverage applies to a property loss by all perils except those specifically
excluded, the policy is written on a(n) ___________ basis.
Agreed Amount
Named Peril
Open Peril
Valued Policy
Open peril
The Open Perils policy is very broad coverage in that it covers the risks of loss that
are not excluded, rather
a policy that is very broad coverage in that it covers the risks of loss that are
not excluded, rather.
The Open Perils
