Study 4 Flashcards
(17 cards)
What is the structure of a personal property policy?
It includes declarations, insuring agreements, exclusions, conditions, and endorsements.
What are the main sections of a property insurance policy?
Declarations, definitions, coverage, exclusions, conditions, and endorsements.
What is the declarations page?
The section that lists key policy information including the insured, location, limits, and premium.
What is an insuring agreement?
It outlines the insurer’s promise to pay for covered losses.
What are the three types of personal property forms?
Basic, Broad, and Comprehensive.
What is a package policy?
A policy combining two or more coverages, such as property and liability.
What is a multiple-limit policy?
A policy that applies different limits to different coverages.
What is a single-limit policy?
A policy with one overall limit that applies to multiple coverages.
What is a subscription policy?
A policy in which two or more insurers share the risk of a single policy.
What is a loss payee clause?
A clause that protects a third party (like a lender) who has a financial interest in the insured property.
What is a chattel?
Personal property that is movable and not affixed to real estate.
Why are there multiple policy forms in property insurance?
To provide options for varying customer needs and different levels of coverages.
What are the key differences between basic, broad, and comprehensive forms?
Basic covers named perils; broad adds more perils; comprehensive covers all risks except exclusions.
Why is it important for professionals to understand how to read a policy?
So that brokers, underwriters, and claims adjusters can properly interpret coverage and advise clients.
What are best practices when reading a property policy?
Start with declarations, understand definitions, identify insuring agreements, and review exclusions and conditions.
What does the conditions section of a policy include?
Duties after loss, cancellation terms, and other responsibilities of the insured and insurer.
Why are policy clauses critical to understand?
They define how the policy operates, including coverage limitations, duties, and responsibilities.
