Exam 10: Analysis of Insurance Contracts

Roger owns some farmland that he rents to a tenant.The tenant lives in an old farmhouse on the property and raises crops on the land.Roger is concerned about possible legal liability if the tenant injures someone.Roger requires the tenant to have liability insurance and to add himself to the liability coverage through an endorsement.Under the tenant's liability insurance,Roger is a(n)

An insurance policy provision that specifies how a property loss will be settled if more than one property insurance policy covers the loss is the

The purpose of a coordination-of-benefits provision in group health insurance plans is to

The portion of a property and liability insurance contract that contains information about the property or activity to be insured is called the

Mark reviewed his homeowners policy.He learned that his personal property was insured on an actual cash value basis.He would like replacement cost coverage on his personal property.He contacted his agent who said,"I'll simply add an amendment to your contract that changes the basis of recovery to replacement cost." The written provision the agent was referring to is called a(n)

Laura's major medical insurance policy includes a $500 deductible.Laura is required to pay 20 percent of covered expenses in excess of the deductible,and her insurer will pay 80 percent of covered expenses in excess of the deductible.Laura was hospitalized and her covered medical expenses were $10,500.How much of the $10,500 will be paid by the insurer?

At what point in time must an insured meet the coinsurance requirement in a property insurance policy in order to avoid having to pay a portion of the loss?

Which of the following statements about a calendar-year deductible is (are)true? I.It requires the insured to pay a specified amount of each claim regardless of when the claim occurs during the year and regardless of any previous claims during the year. II.It is used only in policies which cover direct property losses.

An elimination (waiting)period is an example of a(n)

The policy provision requiring the filing of proof of loss with the insurer is an example of a(n)

Lisa has three fire insurance policies on her office building.The policy from company A is for $400,000,and the policies from companies B and C are for $100,000 each.If Lisa has a $360,000 loss,how much of the loss will be covered by each policy if the loss is settled on a pro rata basis by the insurers?

Eric's property was damaged in an accident.He phoned his agent to see if the loss was covered under his property insurance policy.The agent said,"As long as the cause of loss is not specifically excluded in the policy,the loss is covered." Based on the agent's answer,what type of insuring agreement appears in the policy?

Deductibles are not used in which of the following type of insurance?

Kevin has three liability policies which provide for contribution by equal shares if other insurance applies to a loss.How much will each policy pay for a $3,000,000 liability judgment if policy A provides $500,000 of coverage,policy B provides $1,000,000 of coverage,and policy C provides $3,000,000 of coverage?

The primary purpose of coinsurance in property insurance is to

As an alternative to coinsurance,rate discounts can be given as the amount of insurance to value increases.This alternative is called

The deductible used for automobile collision losses is an example of a(n)

A special coverage policy is a policy that

Shauna hurt her back and was unable to work.She filed a claim under her disability income insurance policy.Under terms of the policy,60 days must pass between the date of the injury and when the insurer begins to replace lost earnings.This 60-day period is called a(n)

Janet hit a wall causing a large dent in the fender of her car.She was busy at work and delayed reporting the damage to her insurer for 9 months.The insurer denied the claim,stating,"Although such a loss is usually covered,you are required under the terms of the contract to provide prompt notification in case of loss." The prompt notification requirement is an example of a(n)