Exam (elaborations)
TN Personal Lines Questions with correct Answers 2024
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Exam of 5 pages for the course Personal lines insurance at Personal lines insurance (TN Personal Lines)
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TN Personal Lineswhen the amount of insurance written in a property policy is not subject to any
coinsurance provision and that amount is paid in the event of a covered loss, the
coverage is said to be written as - answer stated amount
insurance is the transfer of - answer risk
insurance is a contract by which one seeks to protect another from – answer loss
for the purpose of insurance, risk is defined as - answer the uncertainty or chance of
loss
an insured's building has an actual cash value of $200,000, and he has insured the
property for $120,000 with an 80% coinsurance clause. a $40,000 loss occurs. how
much will the policy pay - answer$30,000
insured only carried 75% of the amount of insurance he had agreed to carry
(120,000/160,000)
if the full amount is not carried, divide the actual amount carried by the amount that
should be carried (coinsurance amount), and multiply it by the loss.
what are the four essential elements of all legal contracts - answer1. offer and
acceptance
2. consideration
3. competent parties
4. legal purpose
in forming an insurance contract, when does acceptance usually occur - answerwhen
an insurer's underwriter approves coverage
which of the following would be covered under the broad form (DP-2) policy's falling
object peril - answerinterior building damage if the exterior was damaged first
a dwelling policy has a standard deductible that applies to all property coverage, except
fair rental value, additional living expense, and the fire department service charge. how
much is this deductible - answer$250
which of the following is NOT true concerning the fair rental value coverage provided in
a dwelling policy
, A) the period of time to repair or replace is not limited by the expiration date of the policy
B) loss or expense caused by the cancellation of a lease is covered
C) it pays for the loss of rent you would have collected less any expenses that would not
have continued
D) coverage continues until repairs are completed - answerloss or expense caused by
the cancellation of a lease is covered
under a dwelling policy, which of the following is NOT a factor in determining a loss -
answerthe amount negotiated by the insured
(value of a loss is decided according to the actual cash value of the property, the policy
limit, the amount needed to repair or replace the property, or the amount reflective of
the insured's interest in the property)
if an insurer makes a change to broaden coverage in a dwelling policy while it is in
effect, the changes will apply - answerautomatically
if more than one person has an insurable interest in the property covered under a
dwelling policy - answerthe insurer will be liable for only the insured's interest in the
damaged property
which of the following is NOT covered by the condominium unit owners endorsement
A) alterations to the building
B) appliances in the building
C) fixtures in the building
D) furniture in the building - answerfurniture in the building
the HO-3 homeowners policy provides - answeropen peril coverage on the dwelling and
broad form coverage on personal property
the insured's home is covered by an HO-3. two years ago, the insured bought the home
for $58,000. today, its replacement value is $60,000. how much coverage A does the
insured need to qualify for replacement cost coverage - answer$48,000
(a house must be insured for at least 80% of its value on the date of loss to qualify for
replacement coverage. -80% of 60,000 = $48,000)
elaborate homes and those with detailed or decorative architecture with replacement
costs greater than ACV or market value are insured on - answerHO-8
(HO-8 is used to insure houses with replacement cost more than market value and
those built with irreplaceable materials. it is a modified HO-1 and provides ACV
coverage for coverage A)
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