CPCU 500 Certification Exam Questions and CORRECT Answers

Key questions in determining insurable interest - 1. What is insurable interest 2. When must insurable interest exist 3. Why require insurable interest 4. What is the legal basis of insurable interest 5. What happens when insurable interest overlap Problems associated with maintain insurance to value - 1. The amount of insurance required to maintain insurance to value is based on the property's value at the time of loss, but the limit is chosen at the time of policy inception 2. The insured often selects the policy limits based on his best guess, not on a valid appraisal. 3. Even with an appraisal, the true insurable value at the time of loss cannot be measured exactly until the property is actually repaired or replaced 4. Values fluctuate over tim