OVER 200 CORRECTLY ANSWERED QUESTIONS
Frank owned a home that was destroyed by a hurricane. Both ABC and XYZ
Banks were listed as additional interests on his homeowner policy. The
insurance company will make a payment to:
A. The first mortgagee, ABC
B. The Insured
C. Jointly to ABC and XYZ
D. All listed interests - SELECTED ANSWER:- -D. All listed interests
Remember that the insurer is not responsible to know the degrees of
interest. In the event of a loss, one payment is made by the insurer and it is
up to the additional interests on working out their share.
Insurance applies separately to each insured as if other insureds did not
exist. This is defined as:
A. Severability
B. Conditional
C. Warranty
D. None of the above - SELECTED ANSWER:- -A. Severability
Property insurance policies usually contain a(n) clause, stating the
insured cannot dump damaged property on the insurer and demand its full
value:
A. Pro Rata
B. Abandonment
C. Liberalization
D. All of the above - SELECTED ANSWER:- -B. Abandonment
A(n) is one wherein economic loss would be suffered from an
adverse happening to the subject:
A. Conditional Contract
B. Personal Contract
C. Economic Contract
D. Insurable Interest - SELECTED ANSWER:- -D. Insurable Interest
States that if the insurer adopts a revision which would broaden coverage
without additional premium within some period of time prior to the policy
period or during the policy period, the insured receives the benefit of such
broadened coverage.
A. Cancellation Clause
B. Policy Period
C. Pro Rata
@2023-2024
D. Liberalization - SELECTED ANSWER:- -D.
LiberalizationThe time frame is typically 60 days.
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