PC Exam 2- Proprerty Terms with perfect answers 2024

An insured purchases an apartment building for $250,000, its replacement cost. Her insures it for $150,000 under a Building and Property Coverage Form with an 80 percent Coinsurance clause. In the event of a total loss how much will the insurer pay on the claim? correct answers150,000 BC: Coinsurance/Insurance to Value requires the insured to have minimum amount of replacement cost value (usually 80%). In the event of partial losses, the insurer would apply the coinsurance equation to pay a claim. In the event of total loss in insurer will on;y pay claims based on the amount carried under policy. Since the home is only insured for $150,000, that us all the insurer will pay for the loss D purchased an antique muscle car in November with the intent to restore it in the summer. Upon inspection, D decides that the car is in good shape to store it in the garage until the weather get warmer. Although D knows how to fix cars, he misses a very small hole in the gas tank. If the gas were to accumulate over time and cause the car and garage to explode, the event would defined as a (an) correct answersOccurrence BC: An occurrence is a repeated exposure to conditions over time that results in a loss. An accident is a sudden, unexpected event that causes property damage or injury. Every accident is an occurence, but not every occurrence is an accident Y and Z are recently married coupon and have just closed on their first home. Upon closing the home, their agent told them that even though it will take few weeks for the insurer to officially underwrite and issue coverage, that if a loss were to occur while the insurer was deciding on coverage, that they would be covered correct answersbinder BC: Binders are temporary coverage that are given by agents to provide immediate coverage pending future insurance of a policy J has a policy on his home that protects against almost all losses. J suffered a terrible loss to his home that caused several thousands in claims. J's insurer notifies J that because of all the claims that were paid, they are discontinuing coverage at the end of the policy period. J's policy has been: correct answersNonrenewed BC: Nonrenewed of a policy states that an insured will continue receiving coverage under policy until renewal date, however, the insurer will not renew the policy and the insured must pursue coverage from another carrier B owns a home with a Basic Dwelling policy(DP1) and rents it out to a family. One day, a burglar tries to break into the house causing $2,000 of damage. After submitting the claim, B is informed that since burglar damage is not covered under the policy, the damage will not paid by the policy. B's policy is a correct answersNamed Peril Policy BC: A Named Peril Policy specifically lists which perils are covered by name. If a loss is caused by a peril which is not named in the contract, loss will not be covered