STATE FARM PROPERTY AND CASUALTY
EXAM WITH COMPLETE SOLUTION.
duties of the insured ~CORRECT ANSWER~1. pay the premium
2. take all reasonable means to save and protect the property from loss
3. give the insurance company immediate notice of loss
4. give the insurance company proof of loss within 60 days of the loss
5. separate the damaged property from the undamaged property and allow
the insurance company to inspect the undamaged property as well as the
insured's books and records
6. the insured cannot sue the insurance company unless all of these
requirements have been satisfied and then he/she must sue within 12
months of the loss
duties of the insurance company ~CORRECT ANSWER~1. must
indemnify the insured within 60 days of proof of loss
2. may either pay the appraised ACV of the loss or repair or replace the
damaged property
3. if the insured and insurance company disagree as the ACV of the loss
and the damaged property cannot be repaired or replaced, they each can
select an appraiser. if the appraisers disagree, they select an umpire
appraiser who will make the final determination
, the subrogation clause ~CORRECT ANSWER~states that the insurance
company can require the insured to assign (transfer) to it any legal rights
which the insured has against third parties to the insurance company at the
time of loss
assignment clause ~CORRECT ANSWER~1. transfer of a policy to another
person
2. assignment clause of property insurance policy says no assignment of
the policy is valid unless signed by an officer of the insurance company
the other insurance clause ~CORRECT ANSWER~states that the insurance
company can either prohibit other insurance or can limit the amount of
other insurance by adding an endorsement to the policy
pro rata liability clause ~CORRECT ANSWER~1. applies when there are
concurrent policies. concurrent insurance is when 2 or more policies cover
the same property. it is sometimes done when insuring high value
property. the policies should be identical in all respects except face
amounts
2. says that no insurance company shall be responsible for any more than
its pro rata share of the loss
mortgagee rights ~CORRECT ANSWER~-if a mortgagee (lender) is named
on the declarations page, it acquires 3 rights in the policy:
EXAM WITH COMPLETE SOLUTION.
duties of the insured ~CORRECT ANSWER~1. pay the premium
2. take all reasonable means to save and protect the property from loss
3. give the insurance company immediate notice of loss
4. give the insurance company proof of loss within 60 days of the loss
5. separate the damaged property from the undamaged property and allow
the insurance company to inspect the undamaged property as well as the
insured's books and records
6. the insured cannot sue the insurance company unless all of these
requirements have been satisfied and then he/she must sue within 12
months of the loss
duties of the insurance company ~CORRECT ANSWER~1. must
indemnify the insured within 60 days of proof of loss
2. may either pay the appraised ACV of the loss or repair or replace the
damaged property
3. if the insured and insurance company disagree as the ACV of the loss
and the damaged property cannot be repaired or replaced, they each can
select an appraiser. if the appraisers disagree, they select an umpire
appraiser who will make the final determination
, the subrogation clause ~CORRECT ANSWER~states that the insurance
company can require the insured to assign (transfer) to it any legal rights
which the insured has against third parties to the insurance company at the
time of loss
assignment clause ~CORRECT ANSWER~1. transfer of a policy to another
person
2. assignment clause of property insurance policy says no assignment of
the policy is valid unless signed by an officer of the insurance company
the other insurance clause ~CORRECT ANSWER~states that the insurance
company can either prohibit other insurance or can limit the amount of
other insurance by adding an endorsement to the policy
pro rata liability clause ~CORRECT ANSWER~1. applies when there are
concurrent policies. concurrent insurance is when 2 or more policies cover
the same property. it is sometimes done when insuring high value
property. the policies should be identical in all respects except face
amounts
2. says that no insurance company shall be responsible for any more than
its pro rata share of the loss
mortgagee rights ~CORRECT ANSWER~-if a mortgagee (lender) is named
on the declarations page, it acquires 3 rights in the policy:
