Flashcards in Insurance 2A Deck (23):
All of the following are excluded under the Commercial Crime "Inside the Premises - Theft of Money and Securities" insuring agreement, EXCEPT:
Dishonest acts of customers. Fire, vandalism, and accounting errors are specifically excluded in this insuring agreement.
What kind of contract is an insurance policy considered to be?
Conditional contract. Insurance policies are based on conditions which are rules of conduct that apply to both parties.
How many symbols are there in a business auto policy?
there are 10 symbols that trigger coverage. Coverage is tailored to the need of the insured.
"Books of original entry" refers to:
Ledgers and journals
The custom farming endorsement is usually attached to a farmowners policy when receipts exceed:
In crime insurance, which of the following individuals is NOT considered to be a custodian?
A janitor. Only the insured, employees, partners, or a night watchman are considered to be custodians,
A covered loss has damaged the property belonging to the owner. Property belonging to a customer is also damaged. The customer brings suit against the insured for this damage. The insurer may do which of the following?
Negotiate settlement with the owners of the damaged property and pay the defense costs incurred during the suit against the insured
Why would a driver be insured under the assigned risk plan?
The driver has a poor driving record, DUI charges and is usually declined by the standard insurance markets. It is very expensive
No insurer may issue checks or drafts or partial settlement of a loss or claim that is still being negotiated that:
Releases the insurer from additional liability.
A policy has replacement cost for damaged carpet and counter tops. If replacement will not match up in quality and appearance with the undamaged property, what must the adjuster do?
replace some of the undamaged property along with the damaged carpet and counter tops within reasonable site lines.
Which of the following would not be "other structures" in the HO forms?
A separate building on the insured premises that is used for business.
Depreciation of a total loss to a vehicle as a result of normal wear and tear and rust is limited to:
Commercial property insurance covers what kind of losses?
Direct or indirect loss. Physical losses and loss of income/business interruption resulting from direct damage.
The definition of a vacant building is:
When 65% of the buildings floor space is not being utilized.
The term " subrogation" refers to:
Substitution,(transfer of right of recovery), substitutes the insured party with the insurer. The insurer collects from the party responsible for the damage.
If an insurance company covered an excluded claim it may have to continue paying other such claims because of:
Estoppel. If an insurer allows payment on an excluded claim, the right to exclude similar claims in the future may be waived.
What auto endorsement would include family members as insureds?
Extended non-owned auto.
In the contractual agreement under which a business auto insured rents a car, she is obligated to assume all liability to third parties in connection with the operation of the rented car. The insured's BAP liability coverage may cover:
liability the insured would have had with or without the rental contract.
The "outside the premises" policy insuring agreement covers:
loss of money, securities and other property outside of the premises.
Under the Terrorism Risk Insurance Program Reauthorization Act of 2015, what is the "trigger limit" before claims are paid for the year 2017?
140 million. The trigger increases by 20 million each year.
In commercial property what is the effect of exercising the "agreed value" option?
It negates coinsurance. Agreed value is an option on the Building and Personal Property Coverage form.
Does the HO-3 provide coverage for floods?
No, HO coverage does not include coverage for floods.