Exam (elaborations)
STATE FARM PROPERTY AND CASUALTY TEST
- Course
- Institution
STATE FARM PROPERTY AND CASUALTY TEST...
[Show more]
Content preview
STATE FARM PROPERTY AND CASUALTY TESTDuties of the insured - ANSWER 1. Pay the premium.
2. Use all reasonable steps to save and protect the property from loss.
3. send the insurance company an immediate notice of loss.
4. Submit proof of loss to the insurance carrier within 60 days of the loss.
5. Separate the damaged property from the undamaged property and allow the
insurance company to view both the undamaged property and the insured's books
and records.
6. The insured cannot sue the insurance company unless all of these requirements
are met, and he or she must sue within 12 months of the loss.
ANSWER 1: The insurance company must indemnify the insured within 60 days of
proof of loss.
2. may pay the appraised ACV of the loss, or repair or replace the damaged
property.
3. If the insured and insurance company dispute on the ACV of the loss and the
damaged property cannot be repaired or replaced, each may choose an appraiser. If
the appraisers disagree, they choose an umpire appraiser to make the final decision.
The subrogation clause stipulates that the insurance company can demand the
insured to assign (transfer) any legal rights that the insured has against third parties
to the insurance company at the moment of loss.
Assignment clause - ANSWER 1. Policy transfer to another person.
2. The assignment clause of the property insurance policy states that no assignment
of the policy is valid unless signed by an officer of the insurance company.
, The other insurance clause - ANSWER specifies that the insurance company can
restrict or limit the amount of other insurance by adding an endorsement to the
policy.
The pro rata liability clause - ANSWER 1 - is applicable when there are concurrent
insurance. Concurrent insurance occurs when two or more policies cover the same
property. It is sometimes done when insuring high-value properties. The policies
should be similar in all ways except for face amounts.
2. states that no insurance companies shall be responsible for any more than their
pro rata share of the loss.
mortgagee rights - ANSWER -If a mortgagee (lender) is named on the declarations
page, it gains three rights under the policy:
1. Ten days' notice of cancellation
2. Have the loss reimbursed to the mortgagee.
3. Provide proof of loss if the insured fails to
ANSWER: Salvage is when an insurance company pays a claim and then has the
right to assume possession of the damaged property to fix it and sell it to recoup
some or all of the loss.
-salvage value is the amount for which the insurer is able to sell the damaged
property and the amount of loss that the insurance company can recover.
abandonment clause The ANSWER states that no property may be abandoned to
the insurance company without its consent.
vacancy and unoccupancy clause - ANSWER 1 frequently found only in policies
covering commercial property.
2. If included, it says that coverage ends after the covered property has been vacant
or uninhabited for 60 consecutive days.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Boostertips. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.69. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79650 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now