Definition of acv - Study guides, Class notes & Summaries

Manny is purchasing a Commercial Property policy with a Business Income form included. Manny can select from any of the following as a method to provide coverage, while avoiding the coinsurance requirement, EXCEPT: - CORRECT ANSWER The maximum monthly limit of indemnity optional coverage The traditional definition of actual cash value (ACV) is: - CORRECT ANSWER Replacement cost minus depreciation Sam and Dan are working to clean out the gutters around the roof on Sam's house. Sa...

ANSWER- The three amounts to be considered when calculating the amount of payment as outlined in the Indemnity Agreement are: ANSWER- 1) the value of the lost or damaged property (ACV) 2) the interest of the insured in the property (ex. financial interest, home, mortgage) 3) the amount of insurance specified on the "Declarations Page" for the loss or damaged property (least amount|) Identify the four categories that buildings may fall into: ANSWER- Residential (ex. home) Non-merc...

Coinsurance - Answer-Insurer agrees to a reduced rate if insured carries a specific percentage of insurance to the value of the property Coinsurance penalizes the insured in the event of partial loss Coinsurance formula - Answer-Limit of loss carried/Value of property at time of loss X loss amount - deductible. OR Amount of insurance that was carried/Amount of insurance that should've been carried X loss amount - deductible. OR Did/should X loss amount - deductible Advantages of ...

Bailee An individual or organization who has taken into its care, custody, and/or control the property of another for servicing, repair, or storage Hazard Something that increases the chance or likelihood of a loss occuring. (physical or moral or morale) Market Value A property policy provision that changes the valuation method otherwise applicable (ACV or RV) to a valuation method that allows reimbursement to the insured, according to the price a willing buyer would pay for ...

Property and Casualty Exam Graded A+ Bailee ️An individual or organization who has taken into its care, custody, and/or control the property of another for servicing, repair, or storage Hazard ️Something that increases the chance or likelihood of a loss occuring. (physical or moral or morale) Market Value ️A property policy provision that changes the valuation method otherwise applicable (ACV or RV) to a valuation method that allows reimbursement to the insured, according to th...

Manny is purchasing a Commercial Property policy with a Business Income form included. Manny can select from any of the following as a method to provide coverage, while avoiding the coinsurance requirement, EXCEPT: - ANSWER The maximum monthly limit of indemnity optional coverage The traditional definition of actual cash value (ACV) is: - ANSWER Replacement cost minus depreciation Sam and Dan are working to clean out the gutters around the roof on Sam's house. Sam and Dan are standing a...

INSURANCE ADJUSTER EXAM QUESTIONS TEST BANK QUESTIONS WITH COMPLETE ANSWERS During a storm, heavy winds cause a tree limb to break and fall onto Paul's house, causing $6,500 in damage. Paul's insurance company now considers his house: A Loss Which of the following best describes a "risk," according to the insurance definition? A potential for financial loss A lion at a zoo escaped when a zoo employee failed to follow protocol. The lion injured a zoo patron. In court, the injured patro...

The three amounts to be considered when calculating the amount of payment as outlined in the Indemnity Agreement are: - correct answer 1) the value of the lost or damaged property (ACV) 2) the interest of the insured in the property (ex. financial interest, home, mortgage) 3) the amount of insurance specified on the "Declarations Page" for the loss or damaged property (least amount|) Identify the four categories that buildings may fall into: - correct answer Residential (ex. home)...

Explain "Scheduled Basis" - correct answer Only the items listed on the policy will be insured Explain "Property of Every Description" Basis - correct answer Building, stock and equipment are insured under a single limit of insurance Explain "All Property (Blanket)" Basis - correct answer All property owned by the insured is insured under a single limit of insurance - this can include property at different locations and may be subject to co insurance Identify 5 components fo...

CAIB 2 Chapter 1 Questions and Answers (2024/2025)(Verified Answers) The three amounts to be considered when calculating the amount of payment as outlined in the Indemnity Agreement are: 1) the value of the lost or damaged property (ACV) 2) the interest of the insured in the property (ex. financial interest, home, mortgage) 3) the amount of insurance specified on the "Declarations Page" for the loss or damaged property (least amount|) Identify the four categories that building...