RMI 4224 Exam 1 UPDATED ACTUAL Questions And Correct Answers
C
Terms in this set (81)
A condition commonly found in commercial property a pro rata "other insurance" provision applies when two or more policies cover the
coverage forms: same property
What is not an example of Your Business Personal the building or structure described in the declarations
Property?
Joe owns an appliance repair shop. He just finished $125
repairing a customer's washing machine at a cost of $125
($50 for a part and $75 in labor). Before the customer
could pickup their repaired washing machine, a fire swept
through Joe's shop and destroyed the washing machine.
The washing machine was worth $500 at the time of this
loss. How much money is Joe entitled to collect for this
u=loss under his B&PP?
Why are bridges, roadways, walks, patios, foundations, they have a low susceptibility to covered causes of loss & most insureds don't
pilings and piers typically deemed Property Not Covered want the values of such items considered in determining compliance with the
under the b&PP? policy's coinsurance clause
The additional coverage for preservation of property 30 days
provides coverage for covered proerty removed from
the covered premises to avoid being damaged by a
covered cause of loss. How many days from the time the
property was moved does this coverage extend?
T/F according to the coverage extension under the True
coverage form: Up to $1,000 can be paid for a loss or
damag of a satellite dish due to fire
, statement concerning coverage for Fire Department True
Service Charges: This coverage is treated as additional
insurance and not subject to the limit of insurance
specified in the Declarations
The process available to an insured and their insurance appraisal
company to resolve disputes concerning the valuation of
lost or damaged property is:
Duties of an insured in the event of a covered loss: -protect covered property from further damage
-cooperate with insurance company's investigation of the loss
-provide prompt notice of loss to the insurance company
A building is valued at $250,000 and insured for its full $250,000
value. A fire completely destroys this building and the
insured is paid $250,000 for the destroyed building. The
cost to remove the debris is $40,000. What amount, if any,
can be paid to the insured for the cost of debris removal?
Hazard -condition increasing probability and severity of a loss
-building a home in a remote, arid area increases the probability of a loss due to
wildfires. In this example, the decision to build in this area is the hazard that leads
to a greater probability of loss due to wildfires.
-hazard is not synonymous with peril
Joe doesn't want the liability associated with over-serving Avoidance
patrons alcohol. He sells the bar to another person. What
risk management technique is Joe using?
Legally binding contract includes: offer/acceptance, competent parties, legal purpose, legal consideration
insurance contract with "take it or leave it" characteristic. contract of adhesion
Shavon's home is insured for loss under a standard HO-3 indemnity
policy. She reports theft of her 5 year old tv to her
insurance company. Although shavon paid $1,500 for the
TV 5 years ago, she was only paid the ACV of her TV
&$750) by her insurer. What principle of insurance does
this illustrate?
T/F T,F
1) the insurance company's duty to defend is broader than
its duty to pay covered losses
2) endorsements always provide additional coverage
Not an example of an insurable interest ROger wants to purchase an HO-5 policy to insure against loss to his next-door
neighbor's home
False concerning insurance policy provisions most property insurance policies have provisions that allow an insured to
abandon damaged property they no longer want to the tinsurance company
C
Terms in this set (81)
A condition commonly found in commercial property a pro rata "other insurance" provision applies when two or more policies cover the
coverage forms: same property
What is not an example of Your Business Personal the building or structure described in the declarations
Property?
Joe owns an appliance repair shop. He just finished $125
repairing a customer's washing machine at a cost of $125
($50 for a part and $75 in labor). Before the customer
could pickup their repaired washing machine, a fire swept
through Joe's shop and destroyed the washing machine.
The washing machine was worth $500 at the time of this
loss. How much money is Joe entitled to collect for this
u=loss under his B&PP?
Why are bridges, roadways, walks, patios, foundations, they have a low susceptibility to covered causes of loss & most insureds don't
pilings and piers typically deemed Property Not Covered want the values of such items considered in determining compliance with the
under the b&PP? policy's coinsurance clause
The additional coverage for preservation of property 30 days
provides coverage for covered proerty removed from
the covered premises to avoid being damaged by a
covered cause of loss. How many days from the time the
property was moved does this coverage extend?
T/F according to the coverage extension under the True
coverage form: Up to $1,000 can be paid for a loss or
damag of a satellite dish due to fire
, statement concerning coverage for Fire Department True
Service Charges: This coverage is treated as additional
insurance and not subject to the limit of insurance
specified in the Declarations
The process available to an insured and their insurance appraisal
company to resolve disputes concerning the valuation of
lost or damaged property is:
Duties of an insured in the event of a covered loss: -protect covered property from further damage
-cooperate with insurance company's investigation of the loss
-provide prompt notice of loss to the insurance company
A building is valued at $250,000 and insured for its full $250,000
value. A fire completely destroys this building and the
insured is paid $250,000 for the destroyed building. The
cost to remove the debris is $40,000. What amount, if any,
can be paid to the insured for the cost of debris removal?
Hazard -condition increasing probability and severity of a loss
-building a home in a remote, arid area increases the probability of a loss due to
wildfires. In this example, the decision to build in this area is the hazard that leads
to a greater probability of loss due to wildfires.
-hazard is not synonymous with peril
Joe doesn't want the liability associated with over-serving Avoidance
patrons alcohol. He sells the bar to another person. What
risk management technique is Joe using?
Legally binding contract includes: offer/acceptance, competent parties, legal purpose, legal consideration
insurance contract with "take it or leave it" characteristic. contract of adhesion
Shavon's home is insured for loss under a standard HO-3 indemnity
policy. She reports theft of her 5 year old tv to her
insurance company. Although shavon paid $1,500 for the
TV 5 years ago, she was only paid the ACV of her TV
&$750) by her insurer. What principle of insurance does
this illustrate?
T/F T,F
1) the insurance company's duty to defend is broader than
its duty to pay covered losses
2) endorsements always provide additional coverage
Not an example of an insurable interest ROger wants to purchase an HO-5 policy to insure against loss to his next-door
neighbor's home
False concerning insurance policy provisions most property insurance policies have provisions that allow an insured to
abandon damaged property they no longer want to the tinsurance company
