Property and Casualty Chapter 2 Exam with Complete Solutions

Property and Casualty Chapter 2 Exam with Complete Solutions When a building has physical contents but no occupants, the building is said to be Unoccupied Under the Other Insurance condition, when two property policies cover the same property, how is a loss apportioned? Each policy will share proportionately according to the total insurance A property purchased 10 years ago for $100,000 has a replacement value today of $200,000. It has depreciated 3% each year. What is today's actual cash value? $140,000 If the insured and insurer do not agree on the value of a property loss, what condition would apply? Subrogation Abandonment Appraisal Arbitration Appraisal Which of the following is true about binders? A. A binder will not end when the policy is issued B. A binder does not name the company providing coverage C. The premium amount is not stated in binder D. A binder always expires 15 days after its inception date C. The premium amount is not stated in binder All of the following statements regarding property insurance terminology are true, except: A. Proximate cause is a secondary cause of loss B. An insurance policy that pays only after primary coverage has been exhausted is said to be excess C. Words, terms, or phrases that are described in an insurance policy are definitions D. A deductible is a specified amount of loss that is retained by the insured A. Proximate cause is a secondary cause of loss Which of the following statements regarding types of property loss is false? A. Direct losses include additional living expenses B. Fire damage to an insured home is considered a direct loss from a fire C. A direct loss is a loss resulting directly from a peril insured against D. An indirect loss is the same as a consequential loss A. Direct losses include additional living expenses Which of the following most accurately describes the abandonment condition? A. The insured must cooperate with the company in the investigation of a claim B. The insured must make reasonable and necessary repairs to protect the property C. The insured cannot abandon damaged property