Personal Lines Comprehensive Exam: A.D. Banker –
Questions With Indepth Solutions
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Terms in this set (293)
For a claim to be paid, insurable loss
interest for a property or casualty
contract must exist at the time of:
If the insured doesn't agree with the arbitration
insurer's decision regarding a claim,
this process helps decide the
outcome
Continuous exposure to the same occurrence
harmful conditions
A policyholder has 2 policies that primary policy
provide coverage for a covered loss.
Policy A responds before Policy B,
which only provides coverage if the
loss exhausts Policy A's limit.
Policy A is the:
Part of a property policy that gives declarations
basic info (named insured, description
and location of the property, and the
amount of premium involved)
,All of these statements regarding the A. Additional Coverages are added to the policy for
structure of a property policy are an additional premium
correct, except:
A. Additional Coverages are added to
the policy for an additional premium
B. The insured's duties and obligations
are listed in the Conditions section
C. The Insuring Agreement describes
the perils that are covered under the
policy
D. The Declarations page lists other
parties that have an insurable interest
in the property
All of the following statements about A. A binder must be written in order to be valid
binders are correct, except:
A. A binder must be written in order to
be valid.
B. Binders list the policy's insurer and
insureds
C. A binder will be terminated when
the full insurance policy is issued
D. Binder offer temporary coverage
Statements that are believed to be representations
true to the best of the applicant's
knowledge and belief
The person specifically designated in named insured
the policy as the person with whom
the contract of insurance has been
made
May broaden the coverage found in endorsements
an insurance policy
Describes the situation when 2 non-currency
policies covering the same property
contain different policy periods
,If an insurance company makes a unilateral
promise to fulfill an obligation by
paying a future covered claim, the
contract is:
Type of contract where both parties conditional contract
must perform certain duties in order
to make the contract enforceable
The insurer's promise to pay a covered consideration
loss and the insured's payment of the
first premium are examples of:
Method where primary policies from contribution by equal shares
different insurers apply to the same
covered loss, and the insurers agree
to pay = amounts until policy limits are
exhausted
Refers to when claims are only paid pro rata
out in proportion to the insurance
interest in the asset
Policy condition that gives the insurer right of salvage
the right to take possession of
damaged property after paying the
loss
Which of the following best describes D. Water damage resulting from a burst pipe
a direct loss?
A. Loss of rental income from a
dwelling following a fire loss
B. Transportation expenses after a
personal auto loss
C. Increased living expenses following
a fire loss
D. Water damage resulting from a
burst pipe
, Stipulates that coverage will not no benefit to bailee
benefit a party that is holding, storing,
or moving insured property for a fee
An insured owns a home with a the policy limit
replacement cost of $300,000 and a
market value of $250,000. What is the
most a valued policy will pay in the
event of a total loss without a
deductible?
When filing a property insurance D. Hire an appraiser
claim, the insured is required to do all
of the following, except:
A. Submit to an examination under
oath at the insurer's request
B. Protect property from further
damage
C. Give notice of loss as soon as
possible
D. Hire an appraiser
Questions With Indepth Solutions
Save
Terms in this set (293)
For a claim to be paid, insurable loss
interest for a property or casualty
contract must exist at the time of:
If the insured doesn't agree with the arbitration
insurer's decision regarding a claim,
this process helps decide the
outcome
Continuous exposure to the same occurrence
harmful conditions
A policyholder has 2 policies that primary policy
provide coverage for a covered loss.
Policy A responds before Policy B,
which only provides coverage if the
loss exhausts Policy A's limit.
Policy A is the:
Part of a property policy that gives declarations
basic info (named insured, description
and location of the property, and the
amount of premium involved)
,All of these statements regarding the A. Additional Coverages are added to the policy for
structure of a property policy are an additional premium
correct, except:
A. Additional Coverages are added to
the policy for an additional premium
B. The insured's duties and obligations
are listed in the Conditions section
C. The Insuring Agreement describes
the perils that are covered under the
policy
D. The Declarations page lists other
parties that have an insurable interest
in the property
All of the following statements about A. A binder must be written in order to be valid
binders are correct, except:
A. A binder must be written in order to
be valid.
B. Binders list the policy's insurer and
insureds
C. A binder will be terminated when
the full insurance policy is issued
D. Binder offer temporary coverage
Statements that are believed to be representations
true to the best of the applicant's
knowledge and belief
The person specifically designated in named insured
the policy as the person with whom
the contract of insurance has been
made
May broaden the coverage found in endorsements
an insurance policy
Describes the situation when 2 non-currency
policies covering the same property
contain different policy periods
,If an insurance company makes a unilateral
promise to fulfill an obligation by
paying a future covered claim, the
contract is:
Type of contract where both parties conditional contract
must perform certain duties in order
to make the contract enforceable
The insurer's promise to pay a covered consideration
loss and the insured's payment of the
first premium are examples of:
Method where primary policies from contribution by equal shares
different insurers apply to the same
covered loss, and the insurers agree
to pay = amounts until policy limits are
exhausted
Refers to when claims are only paid pro rata
out in proportion to the insurance
interest in the asset
Policy condition that gives the insurer right of salvage
the right to take possession of
damaged property after paying the
loss
Which of the following best describes D. Water damage resulting from a burst pipe
a direct loss?
A. Loss of rental income from a
dwelling following a fire loss
B. Transportation expenses after a
personal auto loss
C. Increased living expenses following
a fire loss
D. Water damage resulting from a
burst pipe
, Stipulates that coverage will not no benefit to bailee
benefit a party that is holding, storing,
or moving insured property for a fee
An insured owns a home with a the policy limit
replacement cost of $300,000 and a
market value of $250,000. What is the
most a valued policy will pay in the
event of a total loss without a
deductible?
When filing a property insurance D. Hire an appraiser
claim, the insured is required to do all
of the following, except:
A. Submit to an examination under
oath at the insurer's request
B. Protect property from further
damage
C. Give notice of loss as soon as
possible
D. Hire an appraiser
