Which of the following statements best describes the other insurance condition on a standard property?

Q: Which of the following is the best description of the purpose of the insuring agreement?

Which of the following best describes the purpose of an insuring agreement? To describe the promises of the insurer and the insured and the coverages provided.

It is important to understand that multi-peril policies may have specific exclusions and conditions for each type of coverage, such as collision coverage, medical payment coverage, liability coverage, and so on. You will need to make sure that you read the language for the specific coverage that applies to your loss.

Inhaltsverzeichnis Show

The Declaration Page
The Insuring Agreement
The Exclusions
The Conditions
Definitions
Endorsements and Riders
Which of the following statements best describes the other insurance condition on a standard?
Which of the following does a standard homeowners insurance policy cover quizlet?
Which term describes the situation when two policies covering the same property contain different policy?
Which of the following is the best description of the purpose of the insuring agreement?

The Declaration Page

This page is usually the first part of an insurance policy. It identifies who is the insured, what risks or property are covered, the policy limits, and the policy period (i.e. time the policy is in force).

For example, the Declarations Page of an automobile policy will include the description of the vehicle covered (e.g. make/model, VIN number), the name of the person covered, the premium amount, and the deductible (the amount you will have to pay for a claim before an insurer pays its portion of a covered claim).

Similarly, the Declarations Page of a life insurance policy will include the name of the person insured and the face amount of the life insurance policy (e.g. $25,000, $50,000, etc.).

The Insuring Agreement

This is a summary of the major promises of the insurance company and states what is covered. In the Insuring Agreement, the insurer agrees to do certain things such as paying losses for covered perils, providing certain services, or agreeing to defend the insured in a liability lawsuit. There are two basic forms of an insuring agreement:

Named–perils coverage, under which only those perils specifically listed in the policy are covered. If the peril is not listed, it is not covered.
All–risk coverage, under which all losses are covered except those losses specifically excluded. If the loss is not excluded, then it is covered. Life insurance policies are typically all-risk policies.

The Exclusions

Exclusions take coverage away from the Insuring Agreement. The three major types of Exclusions are:

Excluded perils or causes of loss
Excluded losses
Excluded property

Typical examples of excluded perils under a homeowners policy are flood, earthquake, and nuclear radiation. A typical example of an excluded loss under an automobile policy is damage due to wear and tear. Examples of excluded property under a homeowners policy are personal property such as an automobile, a pet, or an airplane.

The Conditions

Conditions are provisions inserted in the policy that qualify or place limitations on the insurer’s promise to pay or perform. If the policy conditions are not met, the insurer can deny the claim. Common conditions in a policy include the requirement to file a proof of loss with the company, to protect property after a loss, and to cooperate during the company’s investigation or defense of a liability lawsuit.

Definitions

Most policies have a Definitions section, which defines specific terms used in the policy. It may be a stand-alone section or part of another section. In order to understand the terms used in the policy, it is important to read this section.

Endorsements and Riders

An insurer may change the language or coverage of a policy at the time of the policy renewal. Endorsements and Riders are written provisions that add to, delete, or modify the provisions in the original insurance contract. In most states, the insurer is required to send you a copy of the changes to your policy. It is important that you read all Endorsements or Riders so you understand how your policy has changed and if the policy is still adequate to meet your needs.

QuestionAnswer Which of the following is not a condition found in an insurance policy? Insuring Agreement True or False. Subrogation allows the insurer to file suit against the the insured False True or False about right of salvage. The insurer has the right to take possession for damaged property after payment of a loss? True The part of an insurance policy that states where the risk is located is the: Declarations True or False regarding property insurance. The owner of clothing left in the care of a dry cleaner is called a bailee? False What is an example of a hostile fire? An uncontrolled campfire in the woods Which policy provision omits certain ricks from coverage? Exclusions The insuring agreement of a policy describes: Perils that are covered Loss of income suffered by a storeowner after his/her store is destroyed in a fire is considered a(n): Indirect Loss What is the best definition of Actual Cash Value in property insurance? Replacement cost minus depreciation When a loss occurs as a result of two perils, one of which is excluded and the other of which is insured against, the situation is known as: Concurrent Causation What may broaden the coverage found in an insurance policy? Endorsements True or False. The perils insured against are listed in the Declaration of a property policy? False Which section lists the perils insured against by a property insurance policy? Insuring Agreements True or Falso regarding the structure of a property policy. The insured’s duties in case of loss are found in the Insuring Agreement False A building with no physical contents and no occupants is said to be: Vacant Which of the following is attached to a property and casualty insurance policy to amend policy provisions or conditions? Endorsement The location of the insured risk can be found is in which part of the insurance policy? The Declaration When property is valued on a replacement cost basis, losses will be paid: At today’s costs, without any deduction for depreciation Which provision stipulates that coverage will not benefit a party that is holding, storing, or moving insured property for a fee? No Benefit to Bailee Which type of construction material has a fire-resistance rating between one and two hours for walls, floors, and roofs? Modified fire-resistive Which provision specifies that no coverage applies if the loss benefits a person who has care, custody, or control of the insured’s property? No Benefit to Bailee An insured owns a home with a replacement cost of $300,000 and a market value of $250,000. What is the most a valued policy will pay in the event of a total loss without a deductible? The policy limit Property insurance policies that apply coverage only to perils that are stated in the policy, are considered to be written on: A named peril basis Which of the following methods of writing insurance is used to provide insurance on properties at different locations, using a single policy, and a single limit of insurance? Blanket Which clause broadens coverage of an existing policy with no increase in premium? Liberalization The standard policy structure for insurance policies includes all of the following sections, except: Conditions, Exclusions, Declarations, Duties Duties True or False. The perils that are not insured against is not included in the Declaration of a Property Policy? True When the insurance company and insured cannot agree upon the amount of the loss, the person selected to help the two hired appraisers is called a(n): Umpire What I the name for the termination of an insurance policy before the expiration date? Cancellation When the insured and the insurer fail to agree on the amount to be paid for the property loss, the dispute is resolution method is called a(n): Appraisal True or false about property policy. The coinsurance clause makes the policy more costly? False In property insurance, the principle that gives the insurer the right to take possession of damaged property after paying the loss is known as: Right of Salvage The concealment and fraud condition in a property insurance policy states: The policy will be voided if there is material concealment, misrepresentation, or fraud on the insured’s part K owns several buildings at different locations with each one insured on a separate policy. Which of the following methods of writing insurance does this describe? Specific Limit What is not true about an insurance policy? The insuring agreement includes the name of the insured Actual Cash Value is best defined as which of the following? Today’s current price, minus depreciation When firefighters extinguish a house fire with water, the water damage is considered a(n): Direct Loss The loss of property when the cause of loss is not known is considered: Mysterious disappearance Which term describes the situation that occurs when two policies covering the same property contain different policy periods? Non-concurrency Theft is specifically defend as: Any act of stealing A secondary loss that occurs as a result of a direct loss from a covered peril is considered: Consequential Loss When a building has physical contents but no occupants, the building is said to be: Unoccupied Which is not found on the Declarations Page? Exclusions What party may assign a standard property policy? The insured with prior written permission of the insurer In property insurance, which clause prevents the insured from relinquishing ownership and leaving damaged property to the insurer and claiming a total loss? Abandonment Which property insurance condition states that a suit may not be filed by the insured against the insurer under certain circumstances? Legal Action Against Us True or False regarding are duties of an insured after a loss. The insured is responsible for determining the valuation method the insurer will use to pay the loss? False Short rate cancellation occurs when: The insured cancels the policy mid-term X's neighbor shoots off fireworks on July 4th and puts the shells in X's trash can, causing a fire and damaging X's garage. X's company pays the loss and contacts the neighbor for reimbursement. This is an example of: Subrogation What is true of the Insuring Agreement? The promise of indemnify an insured for a covered cause of loss When a property insurance policy states that damaged property will be replaced with other property that performs the same function with similar efficiency but is not identical to the damaged property, the policy is written on which of the following bases? Functional Replacement Cost Which of the following is used to resolve differences between the insured and the insurer? Arbitration

Which of the following statements best describes the other insurance condition on a standard?

Which of the following statements BEST describes the Other Insurance condition on a standard property insurance policy if two separate property policies provide coverage for the same loss? -The Other Insurance condition specifies the process to be followed when more than one policy covers the same loss.

Which of the following does a standard homeowners insurance policy cover quizlet?

Typical homeowners insurance policies offer coverage for damage caused by fires, lightning strikes, windstorms and hail. But, it's important to know that not all natural disasters are covered by homeowners insurance. For example, damage caused by earthquakes and floods are not typically covered by homeowners insurance.

Which term describes the situation when two policies covering the same property contain different policy?

Which term describes the situation when two policies covering the same property contain different coverages? Nonconcurrency indicates the existence of two or more policies covering the same exposures that don't have the same policy periods. The duties of the insured and the insurer are found in the policy conditions.

Which of the following is the best description of the purpose of the insuring agreement?

Which of the following best describes the purpose of an "insuring agreement?" To describe the promises of the insurer and the insured and the coverages provided.