Exam 10: Analysis of Insurance Contracts

Jane purchased a $50,000 liability insurance policy from Insurer A.Fearing that she did not have enough liability insurance,she purchased an additional $100,000 of liability coverage from Insurer B.As a result of her negligence,Jane was ordered to pay $75,000 in damages.Assuming the coverage from Insurer A is primary and the coverage from Insurer B is excess,how will this claim be settled?

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

What information is contained in the insuring agreement of an insurance policy?

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?

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 the 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)

Mark owns a building that he insured for $90,000.The replacement cost of the building is $100,000.Mark's property insurance policy has an 80 percent coinsurance clause and no deductible.If Mark's building is destroyed by a covered peril,how much will Mark receive from his insurer?

All of the following are purposes of deductibles EXCEPT

Exclusions are used in insurance policies for all of the following reasons EXCEPT

The primary purpose of coinsurance in property insurance is to

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

Purposes of the coinsurance clause in health insurance contracts include which of the following? I.To reduce premiums. II.To exclude coverage for certain medical procedures.

One method of providing group health insurance is a basic medical expense plan supplemented with major medical insurance.The insured is required to pay a deductible between where the basic coverage ends and where the major medical coverage begins.This deductible is called a(n)

Deductibles are used in all of the following types of insurance EXCEPT

The purpose of other-insurance provisions is to

A provision in a disability income insurance policy that requires a person to be disabled for 60 days before receiving benefits is an example of a(n)

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

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

Under the terms of Jenny's auto insurance policy,she must pay the first $500 of any physical damage loss to her vehicle before her insurer will pay anything.What type of deductible is included in Jenny's auto insurance policy?

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?