Underwriting and rates

Question 1

sources of insurability information

Answer 1

application
consumer credit reports
motor vehicle records
physical inspections of property

Question 2

rate making

Answer 2

judgement rating
schedule rating
experience rating
retrospective rating
merit rating

Question 3

Property insurance concepts: Loss valuation options:

acv (actual cash value

Answer 3

current replacement cost minus depreciation

Question 4

cost to replace damaged property with like kind and quality at current price, no deduction for depriciation

Answer 4

replacement

Question 5

cost to replace damaged property with less expensive but modernized construction or equipment

Answer 5

functional replacement

Question 6

cost a buyer would pay for the property prior to loss, based on the value of location or land)

Answer 6

market value

Question 7

cost agreed upon at the time the insurance is written

Answer 7

agreed value

Question 8

the maximum payable amount scheduled in the policy

Answer 8

stated amount

Question 9

estimate property recovery cost

Answer 9

salvage value

Question 10

payment of the full policy amount regardless of the actual value or depreciation

Answer 10

valued policy