Page 1 Insurance Fundamentals – C Exam Insurance Fundamentals – C Exam
Insurance Fundamentals – C Exam
Leland has two insurance policies covering his home. Indemnify Insurance carries a $120,000
limit of liability on the home, while Binders Keepers, Inc. carries a limit of $80,000. A fire breaks
out in Leland's kitchen and causes $40,000 in damage. Remember, when there are two or more
policies covering the same risk, the "other insurance clause", determines the method used to
calculate each company's share of the claim. Leland's policy states that the pro-rata share
method will be used. Which of the following is the correct amount that will be paid by
Indemnify Insurance?
$24,000
All of the following are part of the "entire contract", EXCEPT
An agreement made between the insured and the agent stated verbally, that the agent will
personally service the insured's policy, and it will not be delegated to a staff member is part of
the entire contract
Before an insured can bring a lawsuit against their insurer to provide coverage under their
policy, the insured must
Fulfill all of their required duties as outlined in the policy
The provision in an insurance contract that outlines the process of bringing a contract dispute
before an objective third party for resolution is known as
Arbitration
1 Insurance Fundamentals – C Exam Insurance Fundamentals – C Exam.pdf
Insurance Fundamentals – C Exam
Leland has two insurance policies covering his home. Indemnify Insurance carries a $120,000
limit of liability on the home, while Binders Keepers, Inc. carries a limit of $80,000. A fire breaks
out in Leland's kitchen and causes $40,000 in damage. Remember, when there are two or more
policies covering the same risk, the "other insurance clause", determines the method used to
calculate each company's share of the claim. Leland's policy states that the pro-rata share
method will be used. Which of the following is the correct amount that will be paid by
Indemnify Insurance?
$24,000
All of the following are part of the "entire contract", EXCEPT
An agreement made between the insured and the agent stated verbally, that the agent will
personally service the insured's policy, and it will not be delegated to a staff member is part of
the entire contract
Before an insured can bring a lawsuit against their insurer to provide coverage under their
policy, the insured must
Fulfill all of their required duties as outlined in the policy
The provision in an insurance contract that outlines the process of bringing a contract dispute
before an objective third party for resolution is known as
Arbitration
1 Insurance Fundamentals – C Exam Insurance Fundamentals – C Exam.pdf
