Valued policy law - Study guides, Class notes & Summaries

principle of indemnity - ANSWER-The insurer agrees to pay no more than the actual amount of the loss (prevent the insured from profiting from loss) replacement cost (RC) - ANSWER-the cost to replace property with an item of like kind and quality (similar workmanship and materials) (not the same as historical cost!) actual cash value (ACV) - ANSWER-- replacement cost - depreciation - in property insurance, indemnification is usually based on the actual cash value of the property at the tim...

RMI EXAM 2(2024 Latest Update)Accurate 100% chapter 5 - ANSWER chapter 5 principle of indemnity - ANSWER The insurer agrees to pay no more than the actual amount of the loss purpose of principle of indemnity - ANSWER -to prevent the insured from profiting from a loss -to reduce moral hazard in property insurance, indemnification is based on the _____ - ANSWER actual cash value methods of determining actual cash value - ANSWER -replacement cost less depreciation -fair market valu...

Florida Insurance Exam Questions and Answers 100% Pass Risk the chance of financial loss Risk is NOT the loss itself, but the _________ of loss. CHANCE Policy a written contract for effecting insurance and includes Clauses, Riders, endorsements, and papers which are part of the contract Insurance a contract where one undertakes to indemnify another or pay a specific amount determined on contingencies Binders temporary insurance which can be made orally or written property insurance where pa...

Colorado Life & Health Insurance Exam| Guide with Questions and Verified Answers| 100% Correct (2023/2024) Q: Joint Life Annuity Answer: -Type of Annuity Pay-out option -Pays only until first annuitant dies Q: Joint and Survivor Annuity Answer: -Pays until the last party dies -Payment often adjusted upon the death of the first party because of age difference Q: Types of Annuities Answer: -Single Premium Deferred Annuity (SPDA) -Level Premium Annuity -Flexi...

Risk 2 types - Answer Speculative - not designed for insurance coverage (gain/loss) Pure - only possibility of loss (Death, Illness) Valued Contract - Answer Pays a stated amount in the event of occurrence - life insurance Reimbursement contract - Answer pays back certain $$ based on loss (Auto Insurance) Third Party Contract - Answer Policy owned by someone other than the insured - husband buys life ins on wife Peril - Answer cause of a loss - fire flood Hazard (2...

Which of the following is NOT one of the four critical elements of a contract? (A) A mutual understanding and agreement with the terms of the contract. (B) Written evidence of the agreement and its terms. (C)A legal purpose. (D)Consideration, consisting of money or a promise of performance. - (B) Written evidence of the agreement and its terms. Assume that five years ago a couple insured their home for [its then appraised value of] $60,000. Two weeks ago they had a stove fire resulting in...

NYREI School Exam Questions and Answers Latest Version Graded A+ What is the minimum licensing requirement to sell commercial real estate in New York? a real estate salesperson's license What is the preferred method of creating an agency relationship? expressed agency An amenity purchaser occupies or uses the purchased property Condominium units are considered _____ property and are conveyed by _____. real / deed A salesperson who is an independent contractor is not subject to withholding r...

a domestic user will be examined by the commissioner at least once every ___ - 5 years. an insurance company owned by its policyholder is known as ___ - mutual insurance company. an insurance company headquartered in ohio, conducting business with west virginia is know as ___ - foreign insurer. agent wilson strikes a deal with his client: if the client agree to purchase homeowners insurance from agent wilson, wilson will waive the clients first premium payment. wilson is guilty of ___ - reb...

Adjuster Pro Exam Prep With 100% Correct Answers 2024 Common law is based upon court decisions and customs. cause of loss or damage peril Jim owns a home valued at $187,500, but he only has a $100,000 homeowner's policy and is underinsured. During a storm, lightning strikes Jim's home causing $45,000 in damages. The insurer decides to invoke a coinsurance penalty. How much will Jim be required to pay for the penalty? The coinsurance requirement of 80% means that Jim should have maintai...

Exam fx Property and Casualty Workers Compensation - correct answer Benefits required by state law to be paid to an employee by an employer in the case of injury, disability, or death as the result of an on-the-job hazard. Warranty - correct answer A material stipulation in the policy that if breached may void coverage. Waiver - correct answer The voluntary abandonment of a known or legal right or advantage. Waiting Period - correct answer Time between the beginning of a disability and...