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Related Flashcards
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Cards In This Set
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What type of policy insures against open perils of loss that are not specifically excluded?
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A. named peril
b. broad peril
c. special peril
d. full coverage
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Which is an example of a consequential or indirect loss?
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A. theft of a bike from the garage
b. loss of income from a rental unit due to tornado damage to the roof
c. loss of rental income due to the house not being rented due to real estate market
d. carpet damage caused by water from a wind/hail damaged roof
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The freezer was purchased new for the amount of $350.00. The day of the fire the value had depreciated $100.00. The same cubic-foot capacity freezer today would cost $500.00. If the insured has ACV coverage, how much will he/she be paid?
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A. $250.00
b. $350.00
c. $400.00
d. $450.00
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Actual Cash Value is:
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A. market value minus depreciation
b. purchase price minus depreciation
c. replacement cost minus depreciation
d. stated value plus appreciation
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In a property and casualty insurance policy, the insurable interest must exist:
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A. when the binder is issued
b. when the application is signed and at the time of loss
c. when the loss occurs
d. when the insurer approves the application
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The valuation clause is:
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A. the clause that describes the exclusions
b. the clause that give the rules and the duties of the policy
c. the clause that determines how the value of the loss will be settled
d. the clause that settles disputes about the value of the loss
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In which of the following would Tom not have an insurable interest?
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A. a house Tom owns but is renting to someone else
b. Tom's furniture
c. a house which Tom is making mortgage payments
d. a house Tom sold yesterday but is still residing
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