Property Insurance 2

Question 1

Explain the differences between an insured, a named insured, a first named insured, and then additional insured

Answer 1

When there is more than one named insured listed on a policy, the policy may assign a higher level of duties or rights to the first named insured, the person listed first on the declarations page.

In addition to the named insured, the policy may cover other specifically designated person’s, businesses, or entities as insureds under the policy, such as family members. Such designations are usually found in the definition of insured listed in the definitions section of the policy.

Question 2

Compare and contrast blanket and specific insurance, named peril and open peril policies, and direct losses and indirect losses

Answer 2

A

Question 3

Describe the five broad categories of exclusions commonly found in property insurance policies

Answer 3

1:
2:
3:
4:
5:

Question 4

Explain the purpose of policy conditions

Answer 4

A

Question 5

Describe an insured’s duties when a loss occurs

Answer 5

A

Question 6

Compare and contrast various methods used to value losses under insurance policies

Answer 6

A

Question 7

Explain the purpose of coinsurance and how the coinsurance penalty may reduce loss payment

Answer 7

A

Question 8

Describe the purpose of the pair or set provision

Answer 8

A

Question 9

Compare and contrast various methods used to determine reimbursement one other insurance applies to a loss

Answer 9

A

Question 10

Explain how appraisal for arbitration may be used to determine the amount paid for a loss

Answer 10

A

Question 11

Describe the purpose of the following policy conditions:

1: salvation and abandonment
2: subrogation
3: liberalization
4: assignment
5: no benefit to bailee
6: mortgage/loss payable
7: policy period and policy territory, and,
8: vacancy and unoccupancy

Answer 11

1: salvation and abandonment
2: subrogation
3: liberalization
4: assignment
5: no benefit to bailee
6: mortgage/loss payable
7: policy period and policy territory, and,
8: vacancy and unoccupancy

Question 12

Compare and contrast reporting and nonreporting insurance policies

Answer 12

A

Question 13

“We’ll Focus on or concentrate on basic, frequently used policies. You will learn their purposes and their unique characteristics”

there is some in uniformity, but not all insurance policies are alike.

Hey degree of standardization has been introduced by insurance service organizations such as insurance services office (IS0).

Answer 13

Although companies may deviate from ISO’s forms or use their own with state approval, it is customary for member companies to use the standardized forms.

Even when companies design their own forms for particular coverage, they tend to be more similarities than differences between the policies is by various insurers.

Question 14

Because there are so many different types of insurance contracts, there are a number of ways to organize a review of key policies. We’ve chosen an organization that builds logically so that each unit hope you prepare for the next.

The first part of the policy review bills with personal lines policies. We start with a personalized property contract, the dwelling policy, and then talk about personal lines policies that combine both property and casualty coverages.

Answer 14

The second part of the policy review covers commercial lines policies, beginning with package policies that include both property and casualty coverages, and then commercial policies that cover individual lines of insurance.

Question 15

Question: John purchases and auto policy for his new car. There are no other insurance listed on the decorations. John is considered the:

1) additional insured
2) named insured
3) first named insured

Answer 15

2

Question 16

Pedro’s homeowners policy lists the mortgage company that has an outstanding loan on the home. The mortgage company is:

1: A named insured
2: an additional insured
3: a first named insured

Answer 16

2

Question 17

Jamal and Claire are owners of a carpet cleaning company. Both are named insureds on the companies insurance policy. Because Jamal’s name appears first on the declarations, he is the:

1: additional insured
2: named insured
3: first named insured

Answer 17

Incorrect 2: named insured

Correct: 3: first named insured

Question 18

What property is covered and where

Answer 18

The declarations also describe the property to be insured. The description can be very specific, designating a particular item to be insured (specific insurance).

Or, it can be a blanket description, such as “personal property located at 1550 Willow” blanket insurance)

Blanket coverage may also mean that the insured’s covered property is insured at any location, rather that than at only a particular location.

And almost endless variety of property can be insured: buildings (real property), tangible and intangible business and personal property, property owned by the insured, and non-owned property.

In addition to the brief description contained in the declarations, the insured agreements will describe in detail the property that is covered by the policy.

You’ll learn more about the types of property that can be insured as you progress through the course

Question 19

A policy declarations indicates the insured property is a 2009 Toyota Camry. This property is covered on a:

1: specific basis
2: blanket basis

Answer 19

1: specific basis

Question 20

A policy declarations indicates the covered property is business property located at 3489 maple street. This policy is covered on a:

1: specific basis
2: blanket basis

Answer 20

2: blanket basis

Question 21

Insurance policies specify the date and time, including where and in what time zone coverage begins and ends. This is known as the policy period.

In some states, the exact time of day policy start and stop is set by law to maintain uniformity between companies and to prevent to get some coverage when an insured changes insurance companies.

Answer 21

Finally, the declarations show the policy limit, also known as the limit of coverage, limit of liability, or limit of insurance.

These limits represent the maximum amount the insurance company will pay for a loss. Within this framework, the principle of indemnity (in-dem-na-tea) and applicable policy conditions are used to determine the exact reimbursement in the event of a loss.

For certain hard–to–value items, the insurance company will issue a …valued or agreed amount contract. Valued contracts are written for a specified amount, and they list the value of the insured property as agreed to by both the insured and insurer at policy inception. If the item is damaged, this is the amount that will be used to value the loss.

This avoids the difficultyof trying to determine the value of such property after it has already been damaged or destroyed. An example of property frequently covered on the value basis is art work.

Question 22

The insuring agreement… Explains what property is covered & the perils the property is insured against.

Answer 22

Several different coverages may be provided in a single policy. The insuring agreement describes the key policy coverages in detail.

The insuring agreement may also specify that certain additional coverages apply.

These coverages, which may also be called: extended coverages, coverage extensions, or other coverages,

…and may have reduced or separate limits of liability or require the insured to meet certain policy requirements before they apply.

Question 23

Perils insured against: Named Peril and Open Peril policies

Answer 23

Policies that list the SPECIFIC PERILS or causes of loss insured against under the contract, such as lightning, fire, and windstorm, are called NAMED PERIL or Specified Peril policies. Named Peril contracts insure property only against the PERILS specifically listed in the policy.

This type of contract is sometimes called all–risk or specific coverage.

Question 24

1: A policy that covers any peril that is not specifically excluded by the policy is a ______ policy.
2: A policy that ensures property against the perils specifically listed in the policy is a _________ policy.

Answer 24

1: an open peril
2: wrong: an open peril… Correct: all risk or special coverage???

Question 25

Direct Loss versus Indirect (Consequential) Loss

Answer 25

In addition to specifying the property covered and the perils issued insured against, the insuring agreement will state whether it covers direct loss, indirect loss, or both. Direct loss: this is financial loss resulting directly from the loss to property, such as a house being damaged in a windstorm or a valuable piece of jewelry being stolen. Indirect Loss: this comes as a result, or consequence, of the original loss. For this reason, it is...also known as consequential loss. For instance, suppose a hotel burns down. In the one-year required to rebuild, the owner loses over $2 million in room rentals. This loss of rent would be an INDIRECT, or CONSEQUENTIAL, loss resulting from the direct loss to the hotel by fire.

Question 26

Common types of exclusions: Every property insurance contract contains exclusions. In a named peril policy, any peril that is not specifically listed as covered is automatically excluded. However, named peril policies also list certain exclusions separately to explain or emphasize perils or property that is an excluded from the coverage. In an open peril policy, the exclusions are especially important, because ANY peril not specifically listed as excluded is insured against.

Answer 26

1: Non-accidental losses 2: losses controllable by the insured 3: extra – hazardous Perils 4: catastrophic losses 5: property coverage in other policies

Question 27

Identify the types of information found in a policies declarations and insuring agreement Like all insurance contracts, property insurance contracts are made up of declarations, insuring agreements, conditions, exclusions, and definitions.

Answer 27

1: declarations section: The first job of the declarations section is to state who is insured, whether it is an individual or a business. Remember, insurance contracts are personal. Even though we sometimes talk about insuring homes or other types of property, such as cars, it is the party named in the declarations who is insured, not the property. In some circumstances, another individual or business may be listed on the declarations as an additional insured--for example, a mortgage company that has an outstanding loan (and therefore an insurable interest) on the property.

Question 28

Limitations Concurrent causation refers to a situation where two or more perils act -- concurrently -- at the same time or in sequence to cause a loss. Insurers maintained they never intended for earthquake coverage of the peril of collapse..... ...some courts concluded for the insured on the grounds that the collapse was due to collapse of the building whether earthquake was a concurrent or contributing cause.

Answer 28

To clarify the intent of the policy, insurers remove the ?? is a peril insured against and made it an additional coverage. 1: losses controllable by the insured: losses that can be controlled or provided with extra care of the insurance part are excluded. This encourages the insured to be responsible and the use of the property. Marring, scratching, and breaking or chipping of fragile object you're all examples of losses that are controllable by the insured. 2: extra – hazardous perils: certain girls are extra hazardous. The insurance company could provide coverage, but the unique nature of the peril prefers a substantial increase in the premium the insured with fake. Extra – hazardous Pierells for used excluded from the policy because most insureds would not want to corn need the coverage. Insured to do require the coverage can often obtain it through an endorsement to the policy, for which an extra premium is charged. An example of extra - hazardous Peril is earthquake. 3: catastrophic losses caused some losses are so broad in their school that they could bankrupt against them. Plus his arising from war or nuclear disasters are generally uninsurable because of their catastrophic nature. 4: another policies: property customarily covered and other insurance proceeds is excluded. For example, a full suit covering your personal property would normally exclude your car because there is a separate bill policy to provide coverage for your vehicle. Some policies also include limitations that are less sweeping then exclusions. A limitation may eliminate or reduce coverage but only under certain circumstances or when specified conditions apply. For example, after building has been vacant for 60 days, some Types of commercial property losses will not be covered at all, while the amount paid for other types of losses forward be reduced by 15%.

Question 29

Common types of exclusions Named peril policy, any peril that is not specifically listed as covered is automatically excluded. However, named peril policies also list certain exclusion separately to explain or emphasize girls were property that is excluded from coverage. In an open girl policy, the exclusions are specially important, because any peril not specifically listed as included is insured against.

Answer 29

Exclusions in a policy very with the type of prep your situation the country is designed to cover. However, there are five broad categories of exclusions that are commonly found in property policies. 1: non-accidental losses 2: losses controllable by the insured 3: extra – hazardous peril 4: catastrophic losses 5: Property covered in other policies

Question 30

Duties following loss The conditions section of property insurance policies list the duties and rights of both the insured and the insurer. Most contracts include conditions that specify with the insured and insurer must do when the last occurs. Together, these provisions may be referred to as LOSS PROVISIONS

Answer 30

The duties following loss condition list the insured's responsibility after a loss, including: 1: giving prompt notice of claim to the insurance company or agent; 2: protecting the property from further damage; 3: completing a detailed proof of loss (an official inventory of the damages) 4: making the property available for inspection by the company; 5: submitting to examination under oath if required; and, 6: assisting the insurer is required during the claim investigation procedure

Question 31

Valuation The insurance company also has duties when a loss occurs. Determining adequate indemnification is an important concern. Some such provisions are sometimes contained in the valuation of how losses will be paid condition. In general, the insured can collect the lesser of: 1: insurable interest; 2: policy limits; 3: actual cash value; 4: cost to repair; and, 5: replacement cost The insured can never collect more than the policy limits are the insurable interest he has in the property.

Answer 31

Actual Cash Value (ACV) Usually determined by calculating the items replacement cost (what it would cost to buy a replacement) and subtracting an amount for depreciation Replacement cost - depreciation = actual cash value Depreciation is subtracted because the insured has already had use of the property. If the full amount were reimbursed so the insured could real place it with a new item, the insured would be better off after the loss than before. This violates the principle of indemnity.

Question 32

Repair Cost: although actual cash value is a common method for reimbursing a loss, the insured may be reimbursed on the basis of the items repaired when the cement is less than the actual cash value.

Answer 32

Replacement cost & functional replacement cost: In some policies, the insurance company agrees to automatically pay the replacement cost for cover glasses with no allowance for depreciation. This is known as replacement cost. Some policies pay losses on a functional replacement cost basis, and which damage property is repaired replaced with less expensive, but functionally equivalent, materials. This method is used most frequently for losses to antique, or late, or custom construction.

Question 33

Market Value Occasionally, property is insured for market value, or what it would be sold for at the time of the loss. Market value is different from a CV or replacement cost.

Answer 33

Coinsurance: The coinsurance condition encourages policyholders to ensure property to its full value. It lists the minimum amount of insurance in church should carry on the property, which is expressed as a percentage of the properties value. For instance, a policy with an 80% coinsurance condition means he insured must into the property for at least 80% of its value. As long as the insured carries the amount of insurance required by the coinsurance condition at the time of loss, the insurer will indemnify losses up to glimpse of the policy. If the insured does not carry enough insurance one less occurs, the company will only pay a percentage of what full contract reimbursement would otherwise have been. You might not paid by the company is sometimes called...THE COINSURANCE PENALTY. Because it is sometimes difficult to predict property values accurately enough to avoid the possibility of a coinsurance penalty, some policies contain an AGREED VALUE or STATED AMOUNT provision. This specifies a certain value that would meet the crew at church record. As long as the photos equals exceeds this will not be assessed a COINSURANCE penalty.

Question 34

When losses are paid: Although it may not be specifically stated in the policy, the insurer is obligated to pay claims promptly. Some policies provide that a claim must be paid within a certain number of days after the insurer has received proof of loss and the parties have reached agreement on the amount of the loss. Others state only be settled within a "reasonable" time frame.

Answer 34

Pair or Set The PAIR or SET condition is a loss settlement condition that appears many property contracts. It states that if part of a pair or set is lost or damage, loss will be valued as a fair proportion of the total value of the set, giving consideration to the importance of the damaged article to the set. The Insurer is not obligated to pay for the loss of the whole set when one only one part has been damaged.

Question 35

Deductible Many property insurance policies have a deductible. This means insured pays the first part of every loss up to the amount of the deductible. This reduces the cost of insurance for reducing the number of small claims. The amount of the deductible as specified in the declarations.

Answer 35

Salvage and abandonment Many property insurance policies contain a salvage condition that provides that the insurance company can take possession of damage property after payment of the loss. So it's good skin reduce the cost of the claim to the insurance company. Well the insurance company may retain the right of salvage, it does not allow the insured to relinquish the property to the company at the option of the insured. The ABOMDONMENT condition states that the insured may not abandon property to the company and asked to be in reimbursed for its full value. Suppose the insured hits a deer, causing major damage to his 10-year-old vehicle. The ABANDONMEMT condition prohibits the insured from abandoning the car to the insurance company and collecting the settlement for the total loss of the other. However, the SALVAGE condition allows the company to settle with the insured for taking position of the current reimbursing the insured for the loss of the auto.

Question 36

Subrogation Most policies give the insurance company subrogation rights. Suppose an insured servers a loss for what she is not at fault, and the party that cause the damage has no insurance or refuses to pay for the damages. Insureds insurance company may step in and pay for the damages and then bring suit or file a claim against the other party or the other parties insurance company on the insureds behalf. This transfer to the insurance company of the insureds right of recovery against others is called subrogation. The subrogation condition may also be called "transfer rate of recovery against others to us".

Answer 36

Appraisal and arbitration There are times when the insured and insurer cannot agree on the amount of indemnification. The appraisal condition provides that either party may demand an appraisal of a loss. In this event, each party to may demand an appraiser. The two appraisers then select an umpire. If the appraisers fail to agree on an amount, they submit their differences to the umpire. The decision agreed to buy any two of the three is the final amount of indemnification. Each party pays its own appraiser and shares the cost of the Umpire. The ARBITRATION condition is worded similarly., But it is not limited to disputes over the value of the loss. It may also be used to resolve other areas of disagreement between the insured insurance company, between the company and a third-party in the case of a liability insurance, or between two insurers.

Question 37

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 37

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 38

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 38

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 39

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 39

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 40

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 40

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 41

Policy Period & Policy territory The Policy Period & Policy Territory provisions state that a loss will not be covered unless it occurs within the policy territory while the policy is in effect. The territory may vary, but a typical policy includes the United States, Puerto Rico, and Canada. The effective date and time of coverage or listed in the decorations.

Answer 41

Vacancy and Unoccupancy Because of the increased chance of loss, property insurance policies may exclude or limit coverage for losses when property is vacant or unlock your break. Vacant means the absence of both people and property from the premises; unoccupied is the absence of people.

Question 42

Reporting forms Property contracts may be issued on a non-reporting or reporting basis. Non-reporting policies: these are contracts for which a flat premium is charged every time the policy is renewed. Auto and homeowners policies are examples of non-reporting forms.

Answer 42

Policies are issued on a REPORTING BASIS when it is difficult to determine in advance what amount of coverage should be purchased. Instead of paying a flat premium, the insured pays a deposit premium, or estimated premium, and then periodically submits reports to the insurer showing the status of those factors on which the premium is based. After the insurance company has calculated the premium, it is charged against the deposit. When the deposit is used up, the insured begins to pay the premium calculated by the insurance company at the end of each reporting period The insurance company may conduct a premium audit of the insured's records before calculating the final premium and making a final adjustment.

Question 43

What type of insurance policy covers any loss that is not specifically excluded by the policy? 1: blanket peril policy 2: specified peril policy: doesn't exist?? 3: named peril policy 4: Open Peril policy

Answer 43

Wrong 1: Blanket Peril An OPEN PERIL policy ensures against all risks of physical loss, except those specifically excluded in the policy. This type of contract is sometimes called "all risk" or "special coverage".

Question 44

What type of insurance policy lists pacific pearls are causes of loss insured against under the contract? 1: Open peril policy 2: named peril policy 3: blanket peril policy 4: all risk policy

Answer 44

They named peril policy list the specific pair also causes of loss insured against under the policy. These are the only perils the property is insured for.

Question 45

Walt and Joanna are code–owners of a bagel shop. Both Walt and Joanna are listed in the declarations of the policy that ensures the business, with Joanne's name appearing first. The declarations also lists first State Bank, which is an outstanding loan on the business. Who is the first name of insured on the policy? 1: both Walt and Joanna 2: Joanna 3: Walt, Joanna, and First State Bank 4: First State Bank

Answer 45

Yea...Joanna When there is more than one named insured listed on the policy, the policy may assign a higher level of duties are rights to the first named insured, the person listed first on the declarations page.

Question 46

Losses that are paid on the basis of the cost to replace the property, without an allowance for depreciation, are paid on: 1: replacement cost basis 2: actual cash value basis 3: market value basis 4: repair cost basis

Answer 46

1: Replacement Cost basis What a loss is paid on the market value basis, the insured receives the amount the property could be sold for at the time of loss. When losses paid on an actual cash value basis, and amount for depreciation is deducted from the replacement cost.

Question 47

Consuelo's homeowners policy has an 80% coinsurance condition. Her homes value is $125,000. What is the minimum amount of coverage she must carry to be indemnified for losses up to the policy limits? 1: $100,000 2: $120,000 3: $125,000 4: $80,000

Answer 47

Wrong: $120,000 Coinsurance condition requires an insured to carry a certain amount of insurance, which is expressed as a percentage of the properties value. In this case, Consuelo must carry insurance equal to 80% of the homes value, or $100,000.

Question 48

It will cost Gary $10,000 to put a new roof on his home after the old one was destroyed by a tornado. Assuming the roof depreciated $300 per year and the roof was 10 years old when the loss occurred. If this loss is valued an actual cash value basis, how much will Gary's insurer pay for the loss? Assume the loss is within the policy limit. 1: $10,000 2: $7000 3: $13,000 4: $3000

Answer 48

2: $7000

Question 49

Linda's sofa television set and entertainment center were destroyed in the fire. The total amount of the loss is $5000; the actual cash value of the items is $3000. If this loss is valued on the replacement cost basis how much Melinda's insurance policy paid? I assume the losses within the policy limit. 1: $5000 2: $8,000 3: $3000 4: $2000

Answer 49

$5000

Question 50

Bills home was demolished in a fire that started when a neighbor misdirected fireworks he set off to celebrate the 4th of July. Bills insurance company pays him for the damage, then files suit against the neighbor to recover the amount it paid for the loss. This is an example of the application of what policy condition? 1: assignment 2: abandonment 3: subrogation 4: liberalization

Answer 50

Subrogation The subrogation condition transfers the insureds right to collect from a responsible third-party to the insurance company.

Question 51

Byron sold his car to his friend Annette but does not notify his insurance company. Assuming that Byron's policy will transfer to who are automatically, Annette doesn't buy insurance for the car. When the car is stolen, Annette files a claim with Byron's former insurer. The insurer denies the claim. This is an example of the application of what policy condition? 1: assignment 2: no benefit to Bailee 3: co-insurance 4: subrogation

Answer 51

Assignment The same condition specifies that the policy may not be transferred to anyone else without the written consent of the insurer, except in the event of the death of the named insured.

Question 52

Which one of the statements concerning the Mortgage Condition is NOT correct? 1: The mortgagee can file a proof of loss when the insured fails to do so to protect its rights under the policy. 2: The mortgagee may have to pay the premium if the insured doesn't 3: The mortgagee has no insurable interest in the cover property 4: The mortgagee may have coverage under the policy even if something insured does causes a claim to be denied

Answer 52

3: The mortgagee has no insurable interest to the covered property

Question 53

A heavy snowfall causes the roof over Shanda's living room to collapse. The insurance company asks her to move her belongings out of the living room to protect them from further damage and put a tarp over the roof until it can be repaired. It also asks her to complete a proof of loss form listing the items that were damaged. This is an example of the application of what policy condition? 1: duties after a loss 2: arbitration 3: appraisal 4: Bailment

Answer 53

1: duties after loss Most insurance policies include conditions that specify what the insured and insurer must do when this occurs. The insured's responsibilities after loss include 1: giving notice of claim to the agent or company, 2: protecting property from further damage, and 3: completing a proof of loss form

Question 54

An indirect loss is: 1: A type of loss that results from a direct loss 2: an insignificant property loss 3: not a type of property loss 4: The cause of a direct loss

Answer 54

1: A type of loss that RESULTS from a direct loss And indirect loss is one that comes as a result, or consequence, of the original loss

Question 55

The policy period is an insurance policy 1: both of these 2: may be by state law 3: neither of these 4: specifies the date and time coverage begins and ends

Answer 55

Both

Question 56

Which of the following would normally be excluded under a property contract? 1: catastrophic losses 2: non-accidental losses 3: Losses controllable by the insured 4: extra – hazardous perils 1: 2 & 5 2: 1,3 & 5 3: 1& 2 4: 1,2,4 & 5

Answer 56

Wrong: 1 & 4 Right: 1, 2, 4 & 5 Property insurance policies typically exclude 1: nonaccidental losses, 2: losses controllable by the insured, 3: extra – hazardous perils, 4: catastrophic losses, and 5: property covered in other policies.

Question 57

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 57

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 58

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 58

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 59

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 59

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 60

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 60

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 61

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 61

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 62

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 62

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 63

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 63

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 64

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 64

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 65

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 65

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 66

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 66

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 67

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 67

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 68

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 68

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 69

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 69

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 70

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 70

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 71

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 71

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 72

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 72

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 73

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 73

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 74

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 74

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 75

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 75

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 76

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 76

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 77

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 77

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 78

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 78

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 79

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 79

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 80

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 80

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 81

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 81

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 82

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 82

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 83

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 83

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 84

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 84

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 85

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 85

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 86

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 86

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 87

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 87

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 88

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 88

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 89

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 89

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 90

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 90

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 91

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 91

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 92

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 92

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 93

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 93

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 94

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 94

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 95

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 95

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 96

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 96

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 97

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 97

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 98

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 98

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 99

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 99

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 100

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 100

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 101

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 101

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 102

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 102

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 103

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 103

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 104

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 104

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 105

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 105

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 106

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 106

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 107

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 107

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 108

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 108

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 109

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 109

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 110

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 110

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 111

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 111

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 112

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 112

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 113

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 113

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 114

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 114

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 115

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 115

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 116

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 116

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 117

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 117

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 118

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 118

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 119

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 119

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 120

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 120

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 121

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 121

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 122

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 122

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 123

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 123

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 124

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 124

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 125

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 125

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 126

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 126

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 127

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 127

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 128

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 128

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 129

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 129

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 130

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 130

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 131

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 131

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 132

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 132

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 133

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 133

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 134

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 134

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 135

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 135

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 136

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 136

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 137

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 137

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 138

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 138

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 139

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 139

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 140

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 140

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 141

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 141

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 142

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 142

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 143

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 143

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 144

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 144

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 145

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 145

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 146

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 146

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 147

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 147

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 148

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 148

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 149

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 149

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 150

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 150

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 151

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 151

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 152

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 152

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 153

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 153

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 154

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 154

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 155

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 155

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 156

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 156

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 157

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 157

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 158

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 158

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 159

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 159

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 160

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 160

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 161

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 161

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 162

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 162

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 163

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 163

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 164

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 164

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 165

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 165

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 166

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 166

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 167

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 167

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 168

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 168

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 169

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 169

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 170

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 170

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 171

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 171

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 172

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 172

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 173

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 173

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 174

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 174

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 175

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 175

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 176

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 176

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 177

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 177

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 178

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 178

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 179

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 179

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 180

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 180

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 181

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 181

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 182

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 182

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 183

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 183

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 184

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 184

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 185

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 185

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 186

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 186

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 187

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 187

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 188

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 188

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 189

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 189

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 190

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 190

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 191

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 191

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 192

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 192

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 193

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 193

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 194

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 194

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 195

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 195

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 196

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 196

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 197

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 197

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 198

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 198

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 199

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 199

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 200

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 200

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 201

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 201

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 202

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 202

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 203

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 203

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 204

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 204

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 205

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 205

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 206

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 206

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 207

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 207

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 208

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 208

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 209

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 209

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 210

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 210

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 211

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 211

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 212

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 212

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 213

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 213

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 214

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 214

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 215

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 215

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 216

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 216

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 217

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 217

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 218

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 218

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 219

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 219

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 220

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 220

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 221

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 221

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 222

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 222

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 223

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 223

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 224

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 224

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.

Question 225

Other insurance The "OTHER INSURANCE" CONDITION sets out how other insurance the insured may have on the same property effects reimbursement under the policy in question one loss occurs. This condition may also be called "other sources of recovery" or "insurance under two or more coverages".

Answer 225

Some policies provide that when other insurance exists they will pay only the excess beyond what the other insurance pays for a loss. ....company "Y's" policy is considered "primary insurance" and Company "X's" policy is "excess insurance".

Question 226

Pro rata Probably the most common method for handling other insurance is to agree to pay only a proportion of any loss that is also covered by other insurance. This is known as the pro rata method. For instance, if the insured carried 30% of the total insurance coverage on her house with company X, company X would not pay more than 30% of a loss.

Answer 226

Policy A's limit of liability/Policy A's limit of liability + Policy B's limit of liability = amount of loss = amount paid by policy A (and vice versa)

Question 227

Liberalization The Live realize Asian condition provides that if the insurer broadens coverage under the policy form or endorsement without requiring an additional premium, then all existing similar policies or endorsements will be construed to contain the broadened coverage.

Answer 227

Assignment The assignment condition specifies that a policy may not be transferred to anyone else without the written consent of the insurer unless the named insured dies. In this case, the rights and duties under the policy or transferred to the insured's legal representative. This condition is sometimes called the "transfer of rights" or "duties under this policy" condition.

Question 228

No Benefit to Bailee Hey Bailey is a person or organization that has temporary possession of someone else's personal property. Examples of Bailee's include dry cleaners and storage facilities. The no benefit to Bailee condition states that the Bailee is not covered under the insurance policy well the Bailee has possession of the insurance policy.

Answer 228

Mortgage condition Lenders or mortgagees may have an insurable interest in the property. The mortgagee is generally named in the declarations. The mortgage condition, or loss payable condition, specifies the rights and duties of the mortgagee, or loss payee, under the policy. For instance, if an insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. In addition, the mortgagee may be expected to pay the premium if the insured fails to do so. The policy may provide that if some condition caused by the insured would result in at the insurer denying coverage for loss it would otherwise have covered, the mortgage she may still have protection under the policy. Or the insurer may have the option of paying off the mortgage and requiring the mortgagee to assign all rights to the company, eliminating the mortgagee's interest.