Pro rata liability clause Study guides, Class notes & Summaries

Pro Rata Liability Clause is included in an insurance policy to deal with the problem of CORRECT ANSWER Duplicate insurance policies The purpose of this clause is to illustrate the method to determine each insurer's liability in case of a loss. Each insurer pays its fair share determined by the percentage that the carrier's limit bears to the total coverage carried. pro rata liability CORRECT ANSWER If a loss occurs that is covered by more than 1 insurance policy that was purchased by the ...

Under absolute liability, does an injured party need to prove negligence? - Answer- No. Absolute liability exists when a condition or conduct is inherently dangerous, so proof of negligence is not required. What insurance principle does pro rata liability protect? - Answer- Indemnity What is the difference between vacancy and unoccupancy? - Answer- Vacancy - refers to an insured structure in which no people have been living or working and no property has been stored for the specified perio...

S is purchasing a Commercial Property policy to cover a commercial building with a replacement cost of $100,000. The policy includes an 80 percent Coinsurance clause. To avoid a coinsurance penalty in the event of a partial loss, S should purchase a policy with minimum limits of AT LEAST which of the following amounts? A. $100,000 B. $90,000 C. $80,000 D. $20,000 ☑: C The MAXIMUM amount a policy will pay in the event of a loss is called the: A. coinsurance amount EXCELLENCE 2 B...

S is purchasing a Commercial Property policy to cover a commercial building with a replacement cost of $100,000. The policy includes an 80 percent Coinsurance clause. To avoid a coinsurance penalty in the event of a partial loss, S should purchase a policy with minimum limits of AT LEAST which of the following amounts? A. $100,000 B. $90,000 C. $80,000 D. $20,000 - Answer C The MAXIMUM amount a policy will pay in the event of a loss is called the: A. coinsurance amount B...

S is purchasing a Commercial Property policy to cover a commercial building with a replacement cost of $100,000. The policy includes an 80 percent Coinsurance clause. To avoid a coinsurance penalty in the event of a partial loss, S should purchase a policy with minimum limits of AT LEAST which of the following amounts? A. $100,000 B. $90,000 C. $80,000 D. $20,000 correct answer: C The MAXIMUM amount a policy will pay in the event of a loss is called the: A. coinsurance amount...

Pearson VUE: Property Insurance Practice Exam Questions and Answers S is purchasing a Commercial Property policy to cover a commercial building with a replacement cost of $100,000. The policy includes an 80 percent Coinsurance clause. To avoid a coinsurance penalty in the event of a partial loss, S should purchase a policy with minimum limits of AT LEAST which of the following amounts? A. $100,000 B. $90,000 C. $80,000 D. $20,000 - Answer- C The MAXIMUM amount a policy will pay in the ...

6-20 Claims Adjuster Questions and Answers Graded A+ The following are basic characteristics of a property or liability insurance contract, EXCEPT: A. Personal Contract B. Conditional Contract C. Loss Settlement Contract D. Contract of Adhesion - Answer ️️ -C. Loss Settlement Contract The Insurers responsibility to pay for a property loss may be conditioned on the insured having used reasonable means to avoid the loss, to protect the property against further loss, and to give the in...

Florida Claims Adjuster Exam Questions and Answers Rated A+ Frank owned a home that was destroyed by a hurricane. Both ABC and XYZ Banks were listed as additional interests on his homeowner policy. The insurance company will make a payment to: A. The first mortgagee, ABC B. The Insured C. Jointly to ABC and XYZ D. All listed interests - Answer ️️ -D. All listed interests Remember that the insurer is not responsible to know the degrees of interest. In the event of a loss, one payment...

S is purchasing a Commercial Property policy to cover a commercial building with a replacement cost of $100,000. The policy includes an 80 percent Coinsurance clause. To avoid a coinsurance penalty in the event of a partial loss, S should purchase a policy with minimum limits of AT LEAST which of the following amounts? A. $100,000 B. $90,000 C. $80,000 D. $20,000 Correct Answer: C 2 The MAXIMUM amount a policy will pay in the event of a loss is called the: A. coinsurance amount B...

Pearson VUE: Property Insurance Certification Exam (2024) || All Questions & Solutions (Rated A+) Pearson VUE: Property Insurance Certification Exam (2024) || All Questions & Solutions (Rated A+) S is purchasing a Commercial Property policy to cover a commercial building with a replacement cost of $100,000. The policy includes an 80 percent Coinsurance clause. To avoid a coinsurance penalty in the event of a partial loss, S should purchase a policy with minimum limits of AT LEAST which of th...