OTL EXAM CHAPTER 5 correctly
answered graded A+
When can an insured cancel a contract of insurance? - correct answer ✔✔Any time during the
contract period
What method of calculating indemnity considers the value of an equivalent piece of property of
the same age, condition, and wear and tear as the lost property? - correct answer ✔✔Actual
cash value (ACV)
Which document is evidence of a contract and states the exact terms and provisions of the
agreement between the insured and the insurer? - correct answer ✔✔Insurance policy
The executor of an estate is overseeing the renovation of a home and is working with a
renovation contractor, the bank (mortgagee), and other trustees. Who does NOT have insurable
interest in the home? - correct answer ✔✔Renovation contractor
Which statement best describes utmost good faith in the context of insurance contracts? -
correct answer ✔✔It is a standard of honesty greater than that usually required of ordinary
contracts and is required of the insurer, insured and intermediaries
In case of general liability insurance, the insurer's right to subrogate can be altered by which
provision? - correct answer ✔✔Contractual Provision
How would a claim be dealt with if the policy were voided? - correct answer ✔✔It would not be
valid as voiding a policy means the policy and coverage never existed
answered graded A+
When can an insured cancel a contract of insurance? - correct answer ✔✔Any time during the
contract period
What method of calculating indemnity considers the value of an equivalent piece of property of
the same age, condition, and wear and tear as the lost property? - correct answer ✔✔Actual
cash value (ACV)
Which document is evidence of a contract and states the exact terms and provisions of the
agreement between the insured and the insurer? - correct answer ✔✔Insurance policy
The executor of an estate is overseeing the renovation of a home and is working with a
renovation contractor, the bank (mortgagee), and other trustees. Who does NOT have insurable
interest in the home? - correct answer ✔✔Renovation contractor
Which statement best describes utmost good faith in the context of insurance contracts? -
correct answer ✔✔It is a standard of honesty greater than that usually required of ordinary
contracts and is required of the insurer, insured and intermediaries
In case of general liability insurance, the insurer's right to subrogate can be altered by which
provision? - correct answer ✔✔Contractual Provision
How would a claim be dealt with if the policy were voided? - correct answer ✔✔It would not be
valid as voiding a policy means the policy and coverage never existed
