CAPP STUDY GUIDE Questions with Correct Solutions
Question:
1. Actual Cash Value
Answer:
The local market value of the insured crop at the time of loss
Question:
2. Adhesion(contract of)
Answer:
A contract offered by the insurance company, on a take it or leave it basis.
Question:
3. Aletory Contract
Answer:
Contract that may not provide more benefits than premiums paid.
Question:
4. Ambiguity
Answer:
Language in the policy that is unclear
Question:
5. Apraisal
Answer:
A survey used to determine a property's insurable value or that amount of loss.
Question:
6. Companion Hail Plan
Answer:
Its purpose is to provided acre basis coverage against hail, fire, transit perils on an portion of
the crop that is not covered under the insured's policy reinsured or approved by the FCIC.
Question:
7. Declarations
, Answer:
The front page of the policy which gives factual statements about the risk, and other general
information about the policy.
Question:
8. Deductible
Answer:
The amount of risk that the insured retains, usually expressed as a percentage.
Question:
9. Deferment
Answer:
Postponement of a settlement to a future time when the adjuster can make an accurate
judgement.
Question:
10. Direct Loss
Answer:
Property loss in which the insured peril is the proximate cause of the damage or destruction.
Question:
11. Double
Answer:
Two or more policies on the same crop.
Question:
12. Endorsement
Answer:
AN amendment in writing added to the insurance contract used to alter the printed terms on
the policy.
Question:
13. Exclusions
Answer:
Provisions in an insurance policy that indicates what is denied coverage. (Catastrophic
events, such as war.)
Question:
14. Hazard
Question:
1. Actual Cash Value
Answer:
The local market value of the insured crop at the time of loss
Question:
2. Adhesion(contract of)
Answer:
A contract offered by the insurance company, on a take it or leave it basis.
Question:
3. Aletory Contract
Answer:
Contract that may not provide more benefits than premiums paid.
Question:
4. Ambiguity
Answer:
Language in the policy that is unclear
Question:
5. Apraisal
Answer:
A survey used to determine a property's insurable value or that amount of loss.
Question:
6. Companion Hail Plan
Answer:
Its purpose is to provided acre basis coverage against hail, fire, transit perils on an portion of
the crop that is not covered under the insured's policy reinsured or approved by the FCIC.
Question:
7. Declarations
, Answer:
The front page of the policy which gives factual statements about the risk, and other general
information about the policy.
Question:
8. Deductible
Answer:
The amount of risk that the insured retains, usually expressed as a percentage.
Question:
9. Deferment
Answer:
Postponement of a settlement to a future time when the adjuster can make an accurate
judgement.
Question:
10. Direct Loss
Answer:
Property loss in which the insured peril is the proximate cause of the damage or destruction.
Question:
11. Double
Answer:
Two or more policies on the same crop.
Question:
12. Endorsement
Answer:
AN amendment in writing added to the insurance contract used to alter the printed terms on
the policy.
Question:
13. Exclusions
Answer:
Provisions in an insurance policy that indicates what is denied coverage. (Catastrophic
events, such as war.)
Question:
14. Hazard
