AIC 41 Assignment 4 Questions and Answers

Which one of the following statements is correct with respect to the Recovered Property condition of the Building and Personal Property Coverage Form (BPP)? Select one: A. The insured has the option of taking the recovered property and refunding the loss payment to the insurer. B. Recovered property is returned to the insured, who has no obligation to return the loss payment to the insurer. C. If property is recovered, the insured must accept the recovered property and refund the loss payment, less the cost of recovering and repairing the property, to the insurer. D. When property is recovered, the insurer need not notify the insured and may dispose of the property as it sees fit. Answer> A. The insured has the option of taking the recovered property and refunding the loss payment to the insurer. Which one of the following statements is correct with respect to the condition Duties in the Event of Loss or Damage of the Building and Personal Property Coverage Form (BPP)? Select one: A. If the insured fails to perform any of them, the insurer may not have to pay for the loss. B. The insured is required to give the insurer notice of the loss, including a description of the property damaged, within 24 hours. C. The claims adjuster is required to take all reasonable steps to protect the property from further loss, prepare an inventory and set the damaged property aside. D. To prevent insurance fraud, the insurer is obliged to notify the police of all losses reported. Answer> A. If the insured fails to perform any of them, the insurer may not have to pay for the loss. The policy valuation approach that determines the basis for using new property of like kind and quality and adjusts for depreciation to determine the amount to be paid at the time of a loss is called Select one: A. Reporting value. B. Agreed value. C. Actual cash value. D. Replacement cost. Answer> C. Actual cash value.