ABRC Illinois Property General Section
and Laws and Regulations
Insurance policy correct answerstransfer of risks to an insurance
company that an individual cannot afford
Pure Risk correct answersloss in an event that insured did not plan
Speculative Risk correct answersloss in an event that the insured
intentionally caused, not covered by insurance companies
Pooling of Risks correct answersIs when a large group of people contribute
money to a fund out of which their losses can be paid
Insurable Interest correct answersfinancial risk the insureds must possess at
the time of loss
both principals of indemnity and insurable interest prohibit what? correct
answersprohibits ins. companies from reimbursing an insured for more than
the actual amount of loss
purpose of a deductible correct answerseliminate small claims that the
insured can afford and that are expensive to administer by an insurance
company
Limits of Liability correct answersmaximum amounts which the insurance
comp. will pay under each coverage
other words that mean the same as limits of liability correct
answersface amount, amount carried
Specified (named peril) Coverage correct answersprotects the insured only
against loss caused by basic perils specifically named in the policy
All Risk (open peril) coverage correct answerscovers against all
insurance perils in basic form policy plus more
Liability Coverage correct answersprotection against injuries suffered by
third parties
there are instances where an ins. comp. doesnt do what even when an
insured has liability coverage correct answersdoesnt pay money
, an insurance company will pay a liability claim when correct
answerswhen they see insured will be held legally liable by a court
Necessary Elements to file a claim against an insured correct
answersproof of negligence
Omission correct answersfailing to do things that should have
been done comission correct answersdoing something that should
not have been done
if insured decides not to rebuild a damaged home, what are they later on
given? correct answersactual cash value of the loss
Representations correct answersStatements made by the applicant on the
insurance application that are correct to the best of their knowledge
Warranties correct answersspecial statements in an application that insured
guarantees to be correct
Fair Credit Reporting Act correct answersAct that protects privacy of
background information and ensures that information supplied is
accurate.
Gramm-Leach-Bliley Act correct answersprotects a borrower's privacy
Replacement cost coverage correct answerspays cost of rebuilding or
replacing insured property with materials like kind likewise at the same
location
Loss Settlement Provision (Coinsurance Clause) correct answersrequires
the insured property to be insured to value for a certain percentage of its
value at all times
Insurance to Value correct answerskeeping a property policy up to date,
full payment given in an event of a loss because of this
Inflation Guard Endorsement correct answersprovides for an annual pro rata
increase in the limits of insurance
Guaranteed Replacement Cost correct answersif a total loss occurs, the
insurer agrees to replace the home exactly as it was before the loss even if
the replacement cost exceeds the amount of insurance stated in the policy
Parts of a policy correct answersdeclarations page, names of insureds,
insuring agreements, conditions, exclusions
Conditions needed to be met at the time the policy is
purchased correct answersapplication, premium paid
and Laws and Regulations
Insurance policy correct answerstransfer of risks to an insurance
company that an individual cannot afford
Pure Risk correct answersloss in an event that insured did not plan
Speculative Risk correct answersloss in an event that the insured
intentionally caused, not covered by insurance companies
Pooling of Risks correct answersIs when a large group of people contribute
money to a fund out of which their losses can be paid
Insurable Interest correct answersfinancial risk the insureds must possess at
the time of loss
both principals of indemnity and insurable interest prohibit what? correct
answersprohibits ins. companies from reimbursing an insured for more than
the actual amount of loss
purpose of a deductible correct answerseliminate small claims that the
insured can afford and that are expensive to administer by an insurance
company
Limits of Liability correct answersmaximum amounts which the insurance
comp. will pay under each coverage
other words that mean the same as limits of liability correct
answersface amount, amount carried
Specified (named peril) Coverage correct answersprotects the insured only
against loss caused by basic perils specifically named in the policy
All Risk (open peril) coverage correct answerscovers against all
insurance perils in basic form policy plus more
Liability Coverage correct answersprotection against injuries suffered by
third parties
there are instances where an ins. comp. doesnt do what even when an
insured has liability coverage correct answersdoesnt pay money
, an insurance company will pay a liability claim when correct
answerswhen they see insured will be held legally liable by a court
Necessary Elements to file a claim against an insured correct
answersproof of negligence
Omission correct answersfailing to do things that should have
been done comission correct answersdoing something that should
not have been done
if insured decides not to rebuild a damaged home, what are they later on
given? correct answersactual cash value of the loss
Representations correct answersStatements made by the applicant on the
insurance application that are correct to the best of their knowledge
Warranties correct answersspecial statements in an application that insured
guarantees to be correct
Fair Credit Reporting Act correct answersAct that protects privacy of
background information and ensures that information supplied is
accurate.
Gramm-Leach-Bliley Act correct answersprotects a borrower's privacy
Replacement cost coverage correct answerspays cost of rebuilding or
replacing insured property with materials like kind likewise at the same
location
Loss Settlement Provision (Coinsurance Clause) correct answersrequires
the insured property to be insured to value for a certain percentage of its
value at all times
Insurance to Value correct answerskeeping a property policy up to date,
full payment given in an event of a loss because of this
Inflation Guard Endorsement correct answersprovides for an annual pro rata
increase in the limits of insurance
Guaranteed Replacement Cost correct answersif a total loss occurs, the
insurer agrees to replace the home exactly as it was before the loss even if
the replacement cost exceeds the amount of insurance stated in the policy
Parts of a policy correct answersdeclarations page, names of insureds,
insuring agreements, conditions, exclusions
Conditions needed to be met at the time the policy is
purchased correct answersapplication, premium paid
