CPCU 530 Ch. 3 Special Characteristics of Insurance Questions and Answers
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CPCU - Chartered Property Casualty Underwriter
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CPCU - Chartered Property Casualty Underwriter
CPCU 530 Ch. 3 Special Characteristics of Insurance Questions and Answers
Which type of insurance policy pays a stated amount, regardless of the actual value of the loss?
Valued Policy
What reinforces the principle of indemnity?
Subrogation
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CPCU 530 Ch. 3 Special Characteristics
of Insurance Questions and Answers
Which type of insurance policy pays a stated amount, regardless of the actual value of
the loss? - answer Valued Policy
What reinforces the principle of indemnity? - answer Subrogation
When the insurance policy wording is ambiguous, a court generally applies the
interpretation in favor of the insured. This is because and insurance policy is a: - answer
Contract of Adhesion (1 author. applicant must accept or reject as written)
An insurer charged an annual premium for homeowners insurance policy each year.
The insured suffered no losses for 5 years. this is an example of? - answer Contract
of unequal amounts
After a windstorm which opened a hole in the roof, an insured was required to place a
tarp over the hole. This requirement is an example of an insurance policy being a: -
answer Conditional Contract
The standard fire insurance policy prohibits the insureds from assigning it to new
owners of the insured property... - answer Without the Insurers Consent
With a contract of indemnity, the insurer agrees in the event of a covered loss, to pay: -
answer An amount directly related to the amount of the loss
NOT:
the full amount necessary to restore insured to financial position prior to loss
An Insurance company may deny a claim if the insured has misrepresented or
concealed: - answer A material fact
The premium for any particular insurance policy should reflect: - answer The
Insured's share of estimated losses that the insurer must pay
The insured must fulfill certain duties before a claim s paid under an insurance policy
because: - answer insurance policies are conditional contracts
A special characteristic of an insurance contract is that it is a non-transferable contract.
This means that insureds may not transfer or assign their insurance policies... - answer
Unless the insurer agrees to the assignment
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