RMIN 4000 Edmunds Test 3 Latest 2024/2025 Updated Questions and Answers Guaranteed 100% Success.
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Module
RMIN 4000 Edmunds
Institution
RMIN 4000 Edmunds
How much life insurance is needed? - depends on family size, income levels, existing financial
assets, and financial goals
Costs of Premature Death - - future earnings are lost forever.
- additional expenses incurred: funeral expenses, uninsured medical bills, higher childcare costs, estate
set...
RMIN 4000 Edmunds Test 3
How much life insurance is needed? - depends on family size, income levels, existing financial
assets, and financial goals
Costs of Premature Death - - future earnings are lost forever.
- additional expenses incurred: funeral expenses, uninsured medical bills, higher childcare costs, estate
settlement expenses, and outstanding debts.
- possible reduction of standard living.
Why have deductibles? - -eliminate small claims
-reduce premiums
-reduce moral and morale hazard
Declarations - statements that provide information about the particular property or activity to be
insured
definitions - statements that provide information about the particular property or activity to be
insured
Insuring Agreement - Summary of the major promises of the insurer (what the policy covers)
named perils - only those perils specifically named in the policy are covered
open perils - all perils are covered except for those that are specifically excluded
exclusions - perils or property that are not covered under the policy
ex. flood/earthquake, war, intentional loss, certain types of property
,Why are exclusions necessary? - -Some perils are not commercially insurable
e.g., catastrophic losses due to war
-Extraordinary hazards are present
e.g., using the automobile for a taxi
-Coverage is provided by other contracts
e.g., use of auto excluded on homeowners policy
-Moral hazard problems
e.g., coverage of money limited to $200 in homeowners policy
-Attitudinal hazard problems
e.g., individuals are forced to bear losses that result from their own carelessness
-Coverage not needed by typical insureds
e.g., homeowners policy does not cover aircraft
conditions - provisions in the policy that qualify or place limitations on the insurer's promise to
perform
Miscellaneous Provisions - - States have mandatory provisions (added by endorsements)
- Notice of Cancellation
- Notice of Nonrenewal
- Notice of Loss
, - Mortgagee Clause
named insured - the person or persons named in the declarations section of the policy
First Named Insured - has certain additional rights and responsibilities that do not apply to other
named insureds
Basic Parts of an Insurance Contract - 1. Declarations
2. Definitions
3. Insuring agreement
4. Exclusions
5. Conditions
6. Miscellaneous provisions
other insureds - persons or parties who are insured under the policy even though they are not
specifically named
additional insureds - person or party added to the policy by an endorsement
Endorsements and Riders - provisions that add to, delete from, or modify the original/main policy
Deductible - a provision by which a specified amount is subtracted from the total loss payment
that otherwise would be payable
straight deductible - the amount the insured is responsible for per loss before the insurer pays
anything
aggregate deductible - the amount the insured is responsible for in total (over all losses during the
policy period) before the insurer pays anything
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