Property and Causality Ch 2

What class of construction includes masonry with a 1 to 2 hour fire-resistive rating?

Modified Fire-Resistive

What term relates to damage when a peril was the proximate cause of a loss?

Direct

Danny drives without. A seatbelt and is always talking on his phone while driving. His behavior best reflects which hazard?

Morale

What is used to add, change or correct coverage from a policy?

Endorsement

What defines a rate?

Charge of coverage

Sam's has his building covered for $100,000 and $50,000 for personal property at the same location. What type of coverage does this describe?

Specific

What provision states how a policy responds if more than one insurer responds to a risk?

Other Insurance

What is the least favorable fire insurance rating?

Frame

Class rating is also known as what type of rating?

Manual

What is the period of time a policy provides coverage?

Policy Period

What contract part contains an insurer's promise to pay?

Insuring Agreement

Bob has property covered by Company Z for $20,000 and Company Y covers it for $40,000. How much will Company Z pay on a $24,000 loss?

$8,000 (20k + 40k = 60k) (20k + 60k = 1/3%) 1/3 of 24k = 8k

If an insurer recognizes that an applicant was convicted of submitting fraudulent claims in the past with another insurer that applicant's application will most likely be rejected. What hazard was committed in this scenario?

Moral

What states the calculation to be used if a policy was cancelled before its expiration date?

Return of Premium

If a named peril is not listed in a policy, when will it be covered?

Never