Oregon Property Property and Casualty Insurance Basics exam wi

What determines an insurer's responsibility for payment, as stated in an insurance policy? - answersLimits of liability How are direct and indirect losses related? - answersDirect losses can cause indirect losses. What is the process that insurers use to determine whether a policy should be issued and on what terms and conditions? - answersUnderwriting A policy that covers all causes of loss except for those specifically excluded is known as what type of policy? - answersOpen peril (or special) form An insured's business is damaged by a fire, and temporarily shut down for repairs. As a result, the insured suffers loss of income, What type of loss is the loss of income? - answersIndirect of consequential What type of limits of liability has the limits separately stated for different coverages? - answersSplit limits In property insurance, when must insurable interest exist? - answersAt the time of loss If an insured peril was the proximate cause of loss, what type of loss is it? - answersDirect What sublimit in a liability policy puts a ceiling on the payment for all claims that arise from a single accident? - answersPer occurrence What is the difference between cancellation and nonrenewal? - answersCancellation is the termination of an insurance policy by either party prior to the policy's expiration date by not offering a continuation of existing policy. The Part of the policy that sets forth the rules of conduct, duties, and obligations for the parties is called the - answersConditions Which rating method provides an insurer with that portion of a rate that does not include provisions of expenses or profit and is based on historical aggregate loss and loss adjustment expenses projected through development to their ultimate value and through trending to a future point in time? - answersLoss costs rating If a homeowners's policy is being cancelled because of unpaid premiums, how much notice should be provided? - answers10 days The insure's house is located one mile from the county's new landfill and across the road from the entrance of a rock quarry. It would cost $150,00 to rebuild the house if something happened to it, but when the insured tried to sell it, the best offer he received was $80,000. The insurance company will insure the house for only $80,000. What method of valuation is used to insure this property? - answersMarket Value In property insurance, actual cash value is defined as which of the following - answersReplacement cost at the time of the loss, less (minus) depreciation An insured relocated to another state for work, However, she still owns and insures a house in this state, but has had no one living in it for 3 months. She is also storing some furniture and clothes in the house. From an insurance standpoint, the insured's house is considered - answersUnoccupied