Chapter 2

Question 1

Parties exempt from subrogation

Answer 1

Any corporation, firm, individual, or other interest with respect to which insurance is provided by this policy.

Question 2

Explain the provisions of the reinstatement policy

Answer 2

Insureds shall have as much insurance after a loss as they did before it

Question 3

Three reasons exclusions exist and examples of each

Answer 3

To exclude losses that are uninsurable - deliberate acts of violence (war, rebellion, revolution)

To exclude catastrophic losses - earthquake, landslide, flood

To exclude losses for which more specialized forms have been developed - auto and aircraft, money and securities

Question 4

Pair and set

Answer 4

Insureds shall be reimbursed for only the part of pair or set that was lost or damaged. Remaining part still has value.

Question 5

Notice to authorities

Answer 5

Insured is liable to report to authorities immediately if loss is due to theft, robbery, malicious acts.