Exam 9: Basic Property and Liability Insurance Contracts

A painting that has been in Chandlers family for years is damaged by an insured peril.The insurer offers Chandler the cost to replace the painting with a new one of similar quality,which is $5,000. Chandler prefers to keep the painting so he can attempt to repair it himself. Which of the following is a true statement about this scenario?

"Other insurance clauses" typically forbid the existence of other insurance on the same property.

Eva's house is damaged by fire. She submits to her insurer a sworn proof of loss claiming that she suffered $70,000 in dwelling damage,and $45,000 in damaged contents. Included in her list of contents was a $5,000 set of china that the insurer discovered was nonexistent. What does the law require the insurer to pay for this claim?

Which clause provides that if two parties cannot agree on a loss settlement each may select a competent and disinterested party to determine the loss?

The appraisal procedure can only be invoked by the insured.

The purpose of the insuring agreement of an insurance policy is to:

Bundling several insurance coverages into one package policy may reduce:

Dane Cook has a $50,000 property loss. His insurance policy's coverage limit is $35,000,and has a $500 deductible applied to the loss. How much will Dane collect?

Exclusions are contained in insurance policies for all the following reasons except:

If Marcell has a $250,000 home and two $200,000 fire insurance policies,how much can he collect in total from both policies following a $100,000 loss?

All the following are rights extended to mortgagees under the mortgage clause in the standard fire policy except:

A substantial increase of hazard voids the Standard Fire insurance policy,but the company will generally issue a new policy if conditions improve.

Property insurance policies are standardized for all the following reasons except:

To determine if a loss is covered by a property insurance contract,you should look at all of the following except:

If there were a $22,000 loss and a $700 straight deductible,the insurer would pay

After Hurricane Andrew,many insurers began using:

Which part of the insurance contract personalizes the coverage to the individual's exposure?

Describe the purposes of deductibles.

The fire insurance contract suspends coverage in all the following instances except:

Explain the purpose of the declaration page found in insurance contracts.