wrong questions property - 1

An unauthorized company writing business in the state that is not subject to state approved policy forms, rates, or rules is known as a(n):

surplus line insurer

Since the policy is written by the insurer and the insured has no input in the wording, any vagueness or ambiguity will always be ruled in favor of the insured. This is known as:

the doctrine of adhesion

A Building and Business Personal Property coverage form written on a Basic Cause of Loss form will provide protection for which of the following losses?

damage due to the discharge of a substance from an automatic sprinkler system

What is NOT an example of risk avoidance?

buying insurance

In liability insurance, what is considered to be an occurrence?

smoke from a factory discolors the paint on nearby homes

What best describes the endorsement used in property policies that modifies building indemnification as a compromise between ACV and replacement cost?

functional replacement cost endorsement

One purpose of a deductible is to:

eliminate small claims

A homeowner whose house suffered a $50,000 total loss was insured for $60,000. What insurance principle would be violated if her insurance company paid $60,000?

indemnity

Phil bought an all risk policy and was told by his agent that everything was covered. After a loss, where does Phil look to see if in fact that loss will be covered?

exclusions section

Which of the following represents the applicant in searching for insurance coverage?

broker

All of the following are not underwriting elements, EXCEPT:

credit scores

What is NOT a defense against negligence?

vicarious negligence

The insured pays a small premium and the insurer promises to pay a large amount if a covered loss occurs. This is an example of a(n):

aleatory contract

Which of the following boat would be afforded liability coverage under a Homeowners (HO) Policy?

9 foot sailboat

Wendy's policy states that it will pay up to $25,000 for injury to any one person; $50,000 for all people that are injured and $10,000 for property damage. This is known as a(n):

split limit

What type of endorsement CANNOT be added to a Businessowners Policy (BOP) contract?

premises and operations

When a Homeowners (HO) Policy is issued with $80,000 for the Coverage A - Dwelling amount, what is the automatic amount of insurance on personal property?

$40,000

Where do you go in a policy to find out whom is an insured?

definitions section

A partnership is insured under a Commercial Package Policy (CPP). Who is considered to be insured under that policy?

the partners, their spouses, and all employees

What Homeowners (HO) Policy is best described as "broad form peril coverage on both real and personal property?"

HO-2