RMIN 4000 Edmunds Exam 3 Questions and Answers Rated A+

RMIN 4000 Edmunds Exam 3 Questions and Answers Rated A+ basic parts of an insurance contract declarations, definitions, insuring agreement, exclusions, conditions, and miscellaneous provisions declarations statements that provide information about the particular property or activity to be insured what does the declarations page usually contain name and address, policy dates, amount of insurance, premium and deductible, and other relevant info definitions key words or phrases are defined so that coverage under the policy can be determined more easily (insurer-"we,us,out" vs. insured-"you,your") insuring agreement summary of the major promises of the insurer (what is covered) named perils only perils specifically named in the policy are covered open perils (All Risk, Special Coverage) all perils are covered except for those that are specifically excluded exclusions perils or property that are not covered under the policy why are exclusions necessary certain perils are considered uninsurable like war and wear and tear what are some reasons to have insurance contract exclusions presence of extraordinary hazards, coverage provided by other contracts, moral or morale hazard, or coverage not needed by typical insureds conditions provisions in the policy that qualify or place limitations on the insurer's promise to perform (prompt notification of loss, no concealment or fraud, etc.) what are some miscellaneous provisions state mandatory provisions, notice of cancellation, loss, nonrenewal, and mortgagee clause (mortgagee has right to be protected and must prove loss to get paid back) named insured person or party named on the declarations page of policy first named insured has additional rights and responsibilities that do not apply to other named insureds other insureds persons or parties who are insured under policy even though they are not specifically named additional insureds person or party added to the policy by an endorsement (lenders and mortgagors) Endorsements and Riders provisions that add to, delete from, or modify the original policy terms (negotiated contract enhancements, state law provisions, etc.) deductible a provision by which a specified amount is subtracted from the total loss payment that would otherwise be payable what purpose do deductibles have for insurers eliminate small claims, reduce premiums, and reduce moral and morale hazard straight deductible the amount the insured is responsible for per loss before the insurer pays anything aggregate deductible The amount the insured is responsible for in total (over all losses during policy period) before the insured pays anything elimination (waiting) period stated period of time at the beginning of a loss during which no benefits are paid (common in disability insurance and business interruption claim coverage) coinsurance in property insurance Encourages the insured to insure the property to a stated percentage of its insurable value. If the coinsurance requirement is not met at the time of loss, the insured must share in the loss as a coinsurer what is the formula for amount of recovery (amount carried/amount required) x loss = amount of recovery coinsurance in health provision that requires the insured to pay a specified percentage of covered medical expenses after the deductible is met (reduce premiums and prevent overusing policy benefits) pro rata liability each insurer's share of the loss is based on the proportion that its insurance bears to the total amount of insurance on the property contribution by equal shares each insurer shares equally in the loss until the share paid by each insurer equals the lowest limit of liability under any policy, or until the full amount of the loss is paid primary and excess insurance the primary insurer pays first, and the excess insurer pays only after the policy limits under the primary policy are exhausted ("umbrella" liability) Bryan Tedford disruptive insurance delivery technology; to infinity and beyond! sustainability insurance and ESG premature death the death of a family head