RMIN 4000 UGA EDMUNDS FINAL PAPER
SOLVED QUESTIONS COMPLETE ANSWERS
BUNDLED RESOURCE
●● Declarations
Answer: statements that provide information about the particular
property or activity to be insured
●● definitions
Answer: statements that provide information about the particular
property or activity to be insured
●● Insuring Agreement
Answer: Summary of the major promises of the insurer (what the policy
covers)
●● named perils
Answer: only those perils specifically named in the policy are covered
●● open perils
Answer: all perils are covered except for those that are specifically
excluded
,●● exclusions
Answer: perils or property that are not covered under the policy
ex. flood/earthquake, war, intentional loss, certain types of property
●● Why are exclusions necessary?
Answer: -Some perils are not commercially insurable
e.g., catastrophic losses due to war
-Extraordinary hazards are present
e.g., using the automobile for a taxi
-Coverage is provided by other contracts
e.g., use of auto excluded on homeowners policy
-Moral hazard problems
e.g., coverage of money limited to $200 in homeowners policy
-Attitudinal hazard problems
e.g., individuals are forced to bear losses that result from their own
carelessness
-Coverage not needed by typical insureds
, e.g., homeowners policy does not cover aircraft
●● conditions
Answer: provisions in the policy that qualify or place limitations on the
insurer's promise to perform
●● Miscellaneous Provisions
Answer: - States have mandatory provisions (added by endorsements)
- Notice of Cancellation
- Notice of Nonrenewal
- Notice of Loss
- Mortgagee Clause
●● named insured
Answer: the person or persons named in the declarations section of the
policy
●● First Named Insured
SOLVED QUESTIONS COMPLETE ANSWERS
BUNDLED RESOURCE
●● Declarations
Answer: statements that provide information about the particular
property or activity to be insured
●● definitions
Answer: statements that provide information about the particular
property or activity to be insured
●● Insuring Agreement
Answer: Summary of the major promises of the insurer (what the policy
covers)
●● named perils
Answer: only those perils specifically named in the policy are covered
●● open perils
Answer: all perils are covered except for those that are specifically
excluded
,●● exclusions
Answer: perils or property that are not covered under the policy
ex. flood/earthquake, war, intentional loss, certain types of property
●● Why are exclusions necessary?
Answer: -Some perils are not commercially insurable
e.g., catastrophic losses due to war
-Extraordinary hazards are present
e.g., using the automobile for a taxi
-Coverage is provided by other contracts
e.g., use of auto excluded on homeowners policy
-Moral hazard problems
e.g., coverage of money limited to $200 in homeowners policy
-Attitudinal hazard problems
e.g., individuals are forced to bear losses that result from their own
carelessness
-Coverage not needed by typical insureds
, e.g., homeowners policy does not cover aircraft
●● conditions
Answer: provisions in the policy that qualify or place limitations on the
insurer's promise to perform
●● Miscellaneous Provisions
Answer: - States have mandatory provisions (added by endorsements)
- Notice of Cancellation
- Notice of Nonrenewal
- Notice of Loss
- Mortgagee Clause
●● named insured
Answer: the person or persons named in the declarations section of the
policy
●● First Named Insured
