Chapter 12: Property Insurance

Question 1

Provides protection against most risks to property, such as fire, theft and some weather damage.

Answer 1

Property Insurance

Question 2

Insurance policy that combines coverage from two or more types of insurance (such as property and liability) into one policy.

Answer 2

Package Policy

Question 3

Policy that covers civil liabilities to third parties, arising from bodily injury, property damage, or other wrongs due to the action or inaction of the insured.

Answer 3

Liability Insurance

Question 4

A method of valuing insured property.

Answer 4

Actual Cash Value (ACV)

Question 5

Normal cost of exact duplication of a property as of a certain date.

Answer 5

Replacement Cost

Question 6

Insurance policy that covers amounts above those covered under one or more other primary policies, and which does not pay until the losses exceed a certain sum.

*Also called excess insurance.

Answer 6

Umbrella Policy

Question 7

A policy containing a single coverage part plus the common policy conditions and common declarations.

Answer 7

Monoline Policy

Question 8

The amount of expenses that must be paid out of pocket before an insurer will pay any expenses.

Answer 8

Deductible