RMIN 4000 Edmunds Chapter 10 Exam with
complete solutions
what are the basic parts of an insurance contract? - Correct Answers -1. Declarations
2. Definitions
3. Insuring agreement
4. Exclusions
5. Conditions
6. Miscellaneous provisions
what are declarations? - Correct Answers -statements that provide information about
the particular property or activity to be insured
what is on a declarations page? - Correct Answers -- name and address of insurer
- name and address of insured
- policy period dates
- premiums
- deductibles
what are definitions? - Correct Answers -key words of phrases are defined so that
coverage under the policy can be determine more easily
what words refer to the insurer? - Correct Answers -"we", "us" and "our"
what words refer to the insured? - Correct Answers -"you" and "your"
what is an insuring agreement? - Correct Answers -summary of the major promises of
the insurer (what the policy covers)
what named perils? - Correct Answers -only those perils specifically named in the policy
are covered
what is coinsurance in property insurance? - Correct Answers -encourages the insured
to insure the property to a state percentage of its insurable value
what happens if the coinsurance requirement for property is not met at the time of loss?
- Correct Answers -the insured must share the loss (as a coinsurer)
what is the formula for amount of recovery? - Correct Answers -(amount carried/amount
required) x loss = amount of recovery
complete solutions
what are the basic parts of an insurance contract? - Correct Answers -1. Declarations
2. Definitions
3. Insuring agreement
4. Exclusions
5. Conditions
6. Miscellaneous provisions
what are declarations? - Correct Answers -statements that provide information about
the particular property or activity to be insured
what is on a declarations page? - Correct Answers -- name and address of insurer
- name and address of insured
- policy period dates
- premiums
- deductibles
what are definitions? - Correct Answers -key words of phrases are defined so that
coverage under the policy can be determine more easily
what words refer to the insurer? - Correct Answers -"we", "us" and "our"
what words refer to the insured? - Correct Answers -"you" and "your"
what is an insuring agreement? - Correct Answers -summary of the major promises of
the insurer (what the policy covers)
what named perils? - Correct Answers -only those perils specifically named in the policy
are covered
what is coinsurance in property insurance? - Correct Answers -encourages the insured
to insure the property to a state percentage of its insurable value
what happens if the coinsurance requirement for property is not met at the time of loss?
- Correct Answers -the insured must share the loss (as a coinsurer)
what is the formula for amount of recovery? - Correct Answers -(amount carried/amount
required) x loss = amount of recovery
