RMIN 4000 EDMUNDS EXAM SCRIPT 3
2026 QUESTIONS WITH 100% ACCURATE
ANSWERS GRADED A+
⩥ Declarations. Answer: statements that provide information about the
particular property or activity to be insured
⩥ definitions. Answer: statements that provide information about the
particular property or activity to be insured
⩥ Insuring Agreement. Answer: Summary of the major promises of the
insurer (what the policy covers)
⩥ named perils. Answer: only those perils specifically named in the
policy are covered
⩥ open perils. Answer: all perils are covered except for those that are
specifically excluded
⩥ exclusions. Answer: perils or property that are not covered under the
policy
ex. flood/earthquake, war, intentional loss, certain types of property
,⩥ Why are exclusions necessary?. Answer: -Some perils are not
commercially insurable
e.g., catastrophic losses due to war
-Extraordinary hazards are present
e.g., using the automobile for a taxi
-Coverage is provided by other contracts
e.g., use of auto excluded on homeowners policy
-Moral hazard problems
e.g., coverage of money limited to $200 in homeowners policy
-Attitudinal hazard problems
e.g., individuals are forced to bear losses that result from their own
carelessness
-Coverage not needed by typical insureds
e.g., homeowners policy does not cover aircraft
⩥ conditions. Answer: provisions in the policy that qualify or place
limitations on the insurer's promise to perform
, ⩥ Miscellaneous Provisions. Answer: - States have mandatory
provisions (added by endorsements)
- Notice of Cancellation
- Notice of Nonrenewal
- Notice of Loss
- Mortgagee Clause
⩥ named insured. Answer: the person or persons named in the
declarations section of the policy
⩥ First Named Insured. Answer: has certain additional rights and
responsibilities that do not apply to other named insureds
⩥ other insureds. Answer: persons or parties who are insured under the
policy even though they are not specifically named
⩥ additional insureds. Answer: person or party added to the policy by an
endorsement
2026 QUESTIONS WITH 100% ACCURATE
ANSWERS GRADED A+
⩥ Declarations. Answer: statements that provide information about the
particular property or activity to be insured
⩥ definitions. Answer: statements that provide information about the
particular property or activity to be insured
⩥ Insuring Agreement. Answer: Summary of the major promises of the
insurer (what the policy covers)
⩥ named perils. Answer: only those perils specifically named in the
policy are covered
⩥ open perils. Answer: all perils are covered except for those that are
specifically excluded
⩥ exclusions. Answer: perils or property that are not covered under the
policy
ex. flood/earthquake, war, intentional loss, certain types of property
,⩥ Why are exclusions necessary?. Answer: -Some perils are not
commercially insurable
e.g., catastrophic losses due to war
-Extraordinary hazards are present
e.g., using the automobile for a taxi
-Coverage is provided by other contracts
e.g., use of auto excluded on homeowners policy
-Moral hazard problems
e.g., coverage of money limited to $200 in homeowners policy
-Attitudinal hazard problems
e.g., individuals are forced to bear losses that result from their own
carelessness
-Coverage not needed by typical insureds
e.g., homeowners policy does not cover aircraft
⩥ conditions. Answer: provisions in the policy that qualify or place
limitations on the insurer's promise to perform
, ⩥ Miscellaneous Provisions. Answer: - States have mandatory
provisions (added by endorsements)
- Notice of Cancellation
- Notice of Nonrenewal
- Notice of Loss
- Mortgagee Clause
⩥ named insured. Answer: the person or persons named in the
declarations section of the policy
⩥ First Named Insured. Answer: has certain additional rights and
responsibilities that do not apply to other named insureds
⩥ other insureds. Answer: persons or parties who are insured under the
policy even though they are not specifically named
⩥ additional insureds. Answer: person or party added to the policy by an
endorsement
