100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
RMIN 4000 Test 3 Brown Study Guide Solutions $12.49   Add to cart

Exam (elaborations)

RMIN 4000 Test 3 Brown Study Guide Solutions

 1 view  0 purchase
  • Course
  • Prep Tests
  • Institution
  • Prep Tests

RMIN 4000 Test 3 Brown Study Guide Solutions Principal of Indemnity - ANSWER-insurer pays no more than actual amount of the loss; insurer should not profit from the loss Replacement cost - ANSWER-the cost to replace an inventory item in its identical form (similar workmanship and quality) Act...

[Show more]

Preview 2 out of 14  pages

  • November 11, 2024
  • 14
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • Prep Tests
  • Prep Tests
avatar-seller
OliviaWest
Copyright © OLIVIAWEST2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED




RMIN 4000 Test 3 Brown Study Guide

Solutions


Principal of Indemnity - ANSWER✔✔-insurer pays no more than actual amount of the loss; insurer

should not profit from the loss


Replacement cost - ANSWER✔✔-the cost to replace an inventory item in its identical form (similar

workmanship and quality)


Actual Cash Value - ANSWER✔✔-replacement cost - depreciation




in property ins, usually based on the actual cash value of the property at the time of loss


Market Value - ANSWER✔✔-the price at which property would sell


Valued Policy - ANSWER✔✔-a policy that pays the face amount of insurance if a total loss occurs (life

insurance)


Value Policy Law - ANSWER✔✔-requires payment of the face amount of insurance if a total loss to real

property occurs from a peril specified in law


Principle of Insurable Interest - ANSWER✔✔-The insured must be in a position to lose financially if a

covered loss occurs


Examples of Insurable Interest - ANSWER✔✔--ownership of property (house, car)




Copyright ©Stuvia International BV 2010-2024 Page 1/14

, Copyright © OLIVIAWEST2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED


-potential legal liability (business owners)


-secured creditors


-contractual rights (goods in transit)


When must an insurable interest legally exist in life insurance? - ANSWER✔✔-at inception of the policy;

ex-spouse can still collect on life insurance if listed as policy beneficiary


Principle of Subrogation - ANSWER✔✔-substitution of the insurer in place of the insured for the purpose

of claiming indemnity from a third party for a loss covered by insurance


Reasons for subrogation - ANSWER✔✔--prevents insured from collecting twice (once from insurer, once

from responsible party)


- holds the negligent party responsible for the loss


- reduces insurance claims costs and therefore rates


principle of upmost good faith - ANSWER✔✔-a higher degree of honesty is imposed on both parties to

insurance contracts than is imposed on parties to other contracts


What three legal doctrines support the principle of upmost good faith? - ANSWER✔✔--representations


-concealment


-warranty


Representations - ANSWER✔✔-statements made by the applicant for insurance


What makes a contract voidable on the premise of misrepresentation? - ANSWER✔✔-1. material


2. false, and


Copyright ©Stuvia International BV 2010-2024 Page 2/14

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 OliviaWest. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79373 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.49
  • (0)
  Add to cart