Exam FX Property and Casualty Insurance Practice Exam | 100% Correct Answers | Verified | Latest 2024 Version

The causes of loss insured against in an insurance policy are known as - Perils Before an insurer will pay any loss under a policy, what is usually required from the insured? - Proof of loss An insured works outside the home. The insured's sister lives with him and cares for his four children. When the insured's home is severely damaged by fire, the family moves into an apartment while repairs are being made. The largest apartment available in the area has two bedrooms, so the insured's sister has to stay at a motel. How much will the HO-3 form pay for these additional living expense? - All of the expense up to the Coverage D limit All of the following statements concerning coinsurance are true EXCEPT - The coinsurance formula will also be applied to total losses. What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk? - Other insurance What is the purpose of the coinsurance clause found in property insurance policies? - Encourage the insured to insure the property closer to its full value With respect to the business of insurance, a hazard is - Any condition or exposure that increases the possibility of loss.