On DEMAND: Property and Casualty Provisions and Contract Law

Question 1

INDIVIDUAL whose name appears on the policy’s DECLARATIONS

Answer 1

Named insured

Not everyone is named on the policy.

Question 2

INDIVIDUAL whose name appears FIRST on the the policy’s DECLARATIONS

Answer 2

First named insured

*Usually on a commercial policy. Primary contact insurance has with a business.

Question 3

Required to perform CERTAIN DUTIES that include PAYING THE PREMIUM and GIVING PROMPT NOTICE of a claim to the insurer in the EVENT OF A LOSS

Answer 3

First named insured

*Usually on a commercial policy. Primary contact insurance has with a business.

Question 4

INDIVIDUALS or BUSINESSES that are NOT NAMED as insureds on the DECLARATIONS PAGE, but are PROTECTED BY THE POLICY, usually in regard to a SPECIFIC INTEREST.

Answer 4

Additional insureds

*Usually a mortgage company or lien holder on a car. If you have a house and it burns down and you rebuild or not, they may owe the mortgage company money, not the insured.

Question 5

Usually added to the policy by ENDORSEMENT

Answer 5

Additional insureds

*Usually a mortgage company or lien holder on a car. If you have a house and it burns down and you rebuild or not, they may owe the mortgage company money, not the insured.

Question 6

A TEMPORARY AGREEMENT issued by an AGENT or INSURER providing TEMPORARY COVERAGE until a policy can be issued

Answer 6

binder

Question 7

Binder
Usually on car insurance.
All policies begin at _____ If you buy at 6 PM the night before. The binder lets you be covered.

Answer 7

Binder
Usually on car insurance.
All policies begin at 12:01 AM. If you buy at 6 PM the night before. The binder lets you be covered.

Question 8

Binder

Usually ____, but may be ____

Answer 8

Binder

Usually written, but may be oral

Question 9

Binder

Expires when the policy is ____ or _____________.

Answer 9

Binder

Expires when the policy is issued or after a specified number of days.

Question 10

Binder

Effective policy date is the _____ as the date when the binder was _____

Answer 10

Binder

Effective policy date is the same as the date when the binder was issued

Question 11

Binder

If policy is declined, binder expires on the date after _________

Answer 11

Binder

If policy is declined, binder expires on the date after receipt of the notice of cancellation

Question 12

Policy Structure

First page is the ______ page.

Answer 12

Policy Structure

First page is the declarations page.

Who
What
How much

Question 13

Policy Structure

Terms used in the policy

Answer 13

definitions

Question 14

Policy Structure

Promise to pay

Answer 14

insuring agreement

Question 15

Policy Structure

an additional amount of coverage for specific losses

Answer 15

additional (supplementary) coverage

Question 16

Policy Structure

rules and procedures under the policy

Answer 16

conditions

Question 17

Policy Structure

Addendums that change the policy

Answer 17

endorsements

Question 18

Policy Structure

What or who is not covered

Answer 18

exclusions

*Acts of war

Question 19

Common Policy Provisions

Claim settlement
If the parties can’t agree

Answer 19

appraisal/arbitration

3 person is the umpire

Question 20

Common Policy Provisions

transfer of rights or interest

Answer 20

assignment

Question 21

Common Policy Provisions

sharing of loss

Answer 21

other insurance

Question 22

Common Policy Provisions

notice of claim, proof of loss

Insured has to complete the completed claim form

Answer 22

Loss settlement

Question 23

Common Policy Provisions

liberalization, subrogation, salvage

Liberalization- have to give to customers at no charge (probably to stay competitive)

subrogation - you accept the claim from the insurance company, you waive your right to find the 3rd party that injured you, the insurance company can find and sue them

Salvage - Car is totalled. They take it and sell it to recoup. Insured can take less and keep driving the car

Answer 23

insurer provisions

Question 24

Common Policy Provisions

standard mortgage
loss payable
no benefit to bailee

Answer 24

third-party clauses

Question 25

2 ways to cancel the policy

Answer 25

Cancellation

Non-renewal

Question 26

the termination of an in-force insurance policy, by either the insured or the insurer, PRIOR TO THE EXPIRATION DATE shown in the policy

Answer 26

Cancellation

Question 27

The termination of an insurance policy AT ITS EXPIRATION DATE by not offering a continuation of the existing policy or a replacement policy.

Answer 27

Nonrenewal