Property & Casualty Policy Provisions & Contract Law 24 Questions with 100% Correct

Property & Casualty Policy Provisions & Contract Law 24 Questions with 100% Correct Declarations - Correct Answer ️️ -Identifies named insured, mailing address, policy period, coverages (limits & premium) and loss payees (lien holders) Insuring agreement - Correct Answer ️️ -types of property covered and perils insured against Conditions - Correct Answer ️️ -describes the rights and duties of the insured and the insurance company under the contract Exclusions - Correct Answer ️️ -losses not covered Definition of the Insured - Correct Answer ️️ -clarifies the meanings of terms Duties of the insured after a loss - Correct Answer ️️ -condition found in property- casualty policies that explains the insured's responsibilities after a loss occurs-prompt notice of claim; protect from further damage; detailed proof of loss (official inventory); make available for inspection by company; submit exam under oath if required; assist insurer as required during claim investigation Obligations of the insurance company - Correct Answer ️️ -Insurance company does not have same freedom to cancel as insured. Must notify insured of cancellation in writing within a specified number of days before effective date of cancellation and returned unearned premium on a pro-rata basis. Company only retains earned premium and is not permitted to keep extra amount for expenses. Mortgagee rights - Correct Answer ️️ -mortgagee Clause: Protects lenders interest in real (house) property (1) advance notice of cancellation (2) protect Mortgagee even if the insureds act prevent recovery (3) Mortgagee can continue policy payments. Loss Payable Clause: Protects lender interest in personal (car) property Proof of loss - Correct Answer ️️ -form completed by an insured after a loss that provides an official inventory of damages. after receipt of proof of loss claim must be paid with 60 days. Must be in writing and set forth the injuries or damage sustained. A valuation of the loss should also be provided. Insurance company can submit proof of loss to the insured based on the adjuster's contract for repairs. An Insurance Agent does not have authority to waive a written proof of loss. Statute (law) allows an insurance company to deny coverage if insured fraudulently misrepresents items in a proof of loss (inflated valuation of a claim is not necessarily fraud). Notice of claim - Correct Answer ️️ -an obligation of the insured to the insurer after a loss. Insured must give prompt notice of claim to the insurance company or agent Appraisal - Correct Answer ️️ -when the insured and insurer cannot agree on the amount of the loss. Each choose an appraiser; if they fail to agree, select an umpire. Agreement of two out of three will be binding. (Not about if claim is covered, claim is covered, arguing about how much $) Other insurance provisions - Correct Answer ️️ -if two or more polices respond to the same loss, the Dwelling policies pay "pro-rata." Subrogation - Correct Answer ️️ -company owns rights against any third party for damages paid to the insured Elements of a contract - Correct Answer ️️ -Must include offer, accept