personal lines insurance

When rates cannot be used until they are improved by the department or division of insurance, they are called ____ ________ rates.

Prior Approval

The termination of a policy by either the insured or insurer before its expiration date is known as ___________.

Cancellation

When the insurer cancels a property policy, the unearned premium is returned ___ ____.

Pro Rata

When an insured requests cancellation of a policy, the unearned premium is refunded to the insured on a _____ _____.

Short Rate

A fire is considered to be a _____ of a potential loss.

Cause

A document that provides temporary insurance coverage until a policy is issued is known as a ______.

Binder

The process by which a disputed claim is decided by a neutral third party is known as ___________.

Arbitration

_________ _________ is a situation where there are two causes resulting in a loss, with one of the causes excluded and the other cause of loss not excluded.

Concurrent Causation

If two or more policies provide identical coverage for the same risk, the policies are deemed to be __________.

Concurrent

When property is damaged by fire, the loss is said to be a(n) ______ loss.

Direct

If a property owner does not desire any deduction for depreciation following a covered loss, he/she should purchase a ___________ ____ policy.

Replacement Cost

For replacement cost coverage to apply in dwelling policies, the insured must carry insurance at least equal to ____% of the cost of replacement of the building.

80

Would a stated amount method of valuation likely be used when insuring gold bullion?

No

An ____ policy is one that the value of the subject matter is not agreed upon, but is left to be ascertained in case of loss.

Open

Insuring more than one property on one policy for a single amount of insurance that applies to all properties covered under the policy is known as _______ coverage.

Blanket

The name of the insured is found on the declarations page of the policy. True or False?

True

What part or portion of a property policy contains the effective or expiration dates of the policy?

Declarations

The __________ part or portion of a property policy sets forth the rights, rules, duties, and obligations of the insurer and insured to be followed throughout the policy period.

Conditions

The ______________ Clause allows insurers to automatically broaden coverage without endorsement on existing policies with no increase in premium.

Liberalization

The insured's transfer of right of ownership or interest in an insurance policy to another party with the insurer's written consent is known as an __________.

Assignment

___________ transfers an insured's legal right of recovery to the insurer that paid the claim.

Subrogation

Company A has issued a policy in the amount of $200,000, and company B has issued a policy in the amount of $300,000. under the other insurance or pro rata liability condition or provision, how much will company A pay of a $100,000 loss?

$40,000

The _________ portion of the policy specifies the causes of loss perils not covered, or property not covered.

Exclusions

An amendment that is attached to a property insurance policy to broaden or restrict coverage, or further define certain policy provisions is known as a(n) ___________.

Endorsement

Under a commercial lines property policy, who is responsible for making the premium payments in a timely manner?

First Named Insured

Essentially, the higher the deductible that the insured chooses, the higher the premium will be. True or False?

False

The insuring of risks that are more prone to losses than average risks is known as?

Adverse Selection

A ___________ contract is an arrangement where one insurer transfers or shares risks with another insurer.

Reinsurance

_____________ Reinsurance is accepted or rejected by a case by case basis.

Facultative

The fact that an insured would profit from a loss, would be a violation of the principle of ___________.

Indemnity

Underwriters like to select insureds who's actual losses will be similar to expected losses. True or False?

True

Policy A is written for $100,000, and an excess Policy B is written for $200,000 on the same property. In the event of a $20,000 loss, how much will each policy pay?

A= $20,000 ; B= $0

A building that has neither occupants nor personal property is ______.

Vacant

If a fire on a premises caused a power outage, which caused meat in the freezer to spoil, would the meat spoilage be considered a direct loss or indirect loss?

Indirect Loss

Open peril policies include losses caused by theft. True or False?

True

A valued policy is one that expresses on it's face an agreement that the thing insured is valued at a specific sum. True or False?

True

Are the insurer's limits of insurance amount stated in the conditions part or portion part of the policy?

No

When a property policy has been in effect less than 60 days and the insurer cancels for the nonpayment of premium, the insurer must give the insured ____ days written notice.

10

Could an order to vacate the property possibly cause an insurer to cancel a commercial property policy?

Yes

An insurer may nonrenew a homeowners policy with oral notice to the insured. True or False?

False

When an insured suffers a loss, they are required to prepare an inventory of the damaged property at the ________ request.

Insurers

In the event of a loss under a homeowners policy, a proof of loss must be signed and sworn by the _______.

Insured

Under a commercial lines property policy, who has the right to request changes to the policy, and the right to recieve any return of premium?

First Named Insured

Risk _________ is when one takes action to prevent or reduce potential loss.

Reduction

When the number of similar units increases, the predictability of the loss improves according to the rule of _____ ________.

Large Numbers

The determination of acceptable risks is the primary function of the ___________ .

Underwriter

Whenever a personal property policy is cancelled or surrendered the unearned premium is to be tendered to the insured, or insurance agent of record for the transmittal to the insured, within ____ days of the cancellation or surrender.

25

A dwelling containing 5 apartment units would be eligible for coverage under a dwelling policy. True or False?

False

Losses to the dwelling, other structures, and contents are paid on an actual cash value basis under a DP-1.

True

Smoke damaged caused from nearby industrial operations is or is not covered under a DP-2 broad form.

Is Not

In the event of a loss, the DP-2 broad form pays for damage to the dwelling on a ___________ ____ basis.

Replacement Cost

Under a DP-3 special form, fixtures that are apart of a dwelling which is not under construction or that has not been vacant for more than 30 days are covered for theft. True or False?

True

The covered causes of loss constitute the major differences between the dwelling forms. True or False?

True

The land under a dwelling is not covered as a part of coverage A (dwelling) under the dwelling forms. True or False?

True

Does a detached garage that is used to store commercial equipment qualify for coverage under coverage B other structures of the dwelling forms?

No

At the insured's request, coverage C ________ ________ will cover personal property of a guest or servant while on described premises.

Personal Property

Coverage C under the dwelling forms extends to include personal property of a tenant or boarder of the insured. True or False?

False

The DP-1 basic form applies coverage to property that is removed because it is endangered by a covered peril. True or False?

True

Under the DP-2, and DP-3, endangered property removed to another location is covered for 30 days while at the removed location. True or False?

True

Collapse of a structure due to hidden decay is covered under all dwelling forms. True or False?

False

The earth movement exclusion does not exclude damage by an explosion that ensues from the earth movement. True or False?

True

Water that backs up through sewers and drains causing damage is covered under a DP-3. True or False?

False

Under the HO-2, would the explosion of a hot water heater that causes major damage to the house be covered?

Yes

Under a homeowners policy, for a claim of more than $2,500 on the dwelling to be paid on a replacement cost basis, the repairs must ____ __________.

Be Completed

Does an HO-3 policy provide coverage against damage caused by falling objects?

Yes

The perils included in the HO-3 policy for coverages A and B are the special _____ perils.

Open

The HO-4 policy provides _____ ____ peril coverage on the personal property.

Broad Form

Does the HO-4 provide coverage for real property?

No

A client desires open peril coverage on both their dwelling and personal property under their homeowners policy. which homeowners form would give them this coverage?

Form 5

The main difference between an HO-3 and an HO-5 is that the HO-3 insures personal property for broad form perils and the HO-5 insures personal properties for open perils.

True

The HO-6 provides _____ ____ _____ peril coverage on personal property.

Broad Form Named

The HO-6 condominium unit-owners form provides coverage for common grounds which are next to the insured's property. True or False?

False

A homeowner has an insured loss of $10,000 damage to the home, $2,000 damage to personal property and $2,000 additional living expenses. the policy carries a $100 deductible. how much will the policy pay?

$13,900

The HO-3 policy provides theft coverage for building supplies that are next to the house which are to be used in construction. True or False?

False

Under the homeowners policy, vandalism and malicious mischief coverage is excluded if the property is ______ for more than 60 days.

Vacant

A homeowners policy that is written for $100,000, has the detached garage completely destroyed by fire. what is the most the policy will pay?

$10,000

What percentage of coverage A is allowed for coverage B (other structures) under a homeowners policy?

10

The territorial limits for personal property under the homeowners policy is _________.

Worldwide

Under section 1 of a homeowners policy, there is a special limit under coverage C on watercraft of _____.

$1,500

Under section 1 of a homeowners policy, there is a special limit for the theft of firearms. True or False?

True

Is there coverage for windstorm damage under a homeowners policy on personal property contained in the building unless an opening is caused by a covered peril?

No

An insured's camera that is stolen by a visitor would be covered under the homeowners policy. True or False?

True

Additional living expense under a homeowners policy is found in coverage ___.

D

An insured has a homeowners policy and suffers a direct loss causing the insured to seek other living arrangements. the insured's normal househould expense is $500 per month. however the new arrangements cost is $700 per month. how much will the insured collect monthly from the homeowners policy?

$200

Do payments under coverage D of the homeowners policy affect the policies liability limits?

No

When a covered loss exhausts the applicable coverage limit, debris removal coverage will pay up to an additional ___% of coverage A.

5

Under a HO-3 policy, the maximum amount for any one tree, shrub or plant is $___.

500

when an insured removes insured property from the premises because it is endangered by a covered peril, the homeowners policy provides coverage for ____ days at the location the property is removed to.

30

The HO-2 policy will cover the collapse of a patio that is caused by the weight of water that has collected on the roof. True Or False?

False

Under a homeowners policy, landslides would be covered. True or False?

False

Ensuing loss by fire, explosion or glass breakage resulting from earth movement is covered under a homeowners policy even though the earth movement itself is excluded. True or False?

False

Is the backing up of sewers covered under a homeowners policy?

No

If an insured has maintained heat in an unoccupied dwelling, damaged caused by freezing of the plumbing system would be covered under the HO-3 policy. True or False?

True

Would a television set be covered on a replacement cost basis under the replacement cost endorsement?

Yes

Under the homeowners policy, the personal property replacement cost endorsement would provide replacement cost on an insured's pet. True or False?

False

Under the scheduled personal property endorsement, newly aquired fine arts need to be reported to the insurer within ____ days.

90

The california residential property insurance disclosure form is required by california law and becomes an actual part of an insured's homeowners policy. True or False?

False

____ insurance includes physical damage to machinery and fitting of the vessel.

Hull

Ocean marine hull insurance is typically written to cover a particular voyage or for one year. True or False?

True

If cargo is shipped FOB point of destination, the seller retains the cost of transportation and insurance during shipping. True or False?

True