100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
CPCU 500, Questions Set, Chapters 1 – 8 Questions & answers $12.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. CPCU - Chartered Property Casualty Underwriter
  4.  
  5. CPCU - Chartered Property Casualty Underwriter

Exam (elaborations)

CPCU 500, Questions Set, Chapters 1 – 8 Questions & answers
 0 purchase
  • Course
  • CPCU - Chartered Property Casualty Underwriter
  • Institution
  • CPCU - Chartered Property Casualty Underwriter

CPCU 500, Questions Set, Chapters 1 – 8 Questions & answers Key questions in determining insurable interest 1. What is insurable interest 2. When must insurable interest exist 3. Why require insurable interest 4. What is the legal basis of insurable interest 5. What happens when insurable i...

[Show more]

Preview 2 out of 10  pages

Document information

  • October 22, 2024
  • 10
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • cpcu 500 questions set chapters 1 8 questions
  • key questions in determining insurable interest 1
  • problems associated with maintain insurance to val

Written for

  • CPCU - Chartered Property Casualty Underwriter
  • CPCU - Chartered Property Casualty Underwriter

Seller

avatar-seller
Pogba119

Reviews received

Content preview

CPCU 500, Questions Set, Chapters 1 – 8
Questions & answers
Key questions in determining insurable interest - answer 1. What is insurable interest
2. When must insurable interest exist
3. Why require insurable interest
4. What is the legal basis of insurable interest
5. What happens when insurable interest overlap

Problems associated with maintain insurance to value - answer 1. The amount of
insurance required to maintain insurance to value is based on the property's value at the
time of loss, but the limit is chosen at the time of policy inception
2. The insured often selects the policy limits based on his best guess, not on a valid
appraisal.
3. Even with an appraisal, the true insurable value at the time of loss cannot be
measured exactly until the property is actually repaired or replaced
4. Values fluctuate over time

Insurance buyers can minimize those four problems by - answer 1. Using a
professional appraiser to determine the current replacement cost value and then
reappraising the property every few years
2. Adjusting the appraisal annually using indexes and/or a record of additions and
deletions
3. Reviewing and revising limits periodically
4. Using appropriate coverage options such as
Agreed value optional coverage
Inflation guard protection
Peak season endorsement

Approaches used in property insurance to value property - answer 1. actual cash
value
2. replacement cost
3. agreed value approach
4. functional value

Valuation of Liability Losses are typically based on - answer 1. The relevant policy
provisions and
2. The extent of the bodily injury and/or property damage to others

The most the insurer will pay is the lesser of - answer 1. The applicable policy limit
2. The compensable amount of the loss

, Purposes of deductibles - answer 1. To reduce the insurer's cost by eliminating the
inefficiencies of dollar trading and eliminating insurer loss settlement and other
administrative expense for loss under the deductable.
2. To encourage risk control
3. To reduce the morale and moral hazard incentive

How deductibles are handled in liability insurance: the insurer - answer 1. Defends
the claim on a first - dollar basis
2. Pays all covered losses
3. Bills the insured for the amount of losses up to the deductible.

Limited use of liability deductibles - answer 1. The insurer wants the insured to report
every claim and not play adjuster and attorney. Simply, the insurer wants to control the
claim settlement.
2. The premium credit would be small
3. Few people sue for small amounts
4. The insurer must try to collect the deductible amount from the insured.

Other sources of recovery that affect amounts payable - answer 1. Noninsurance
agreements, warranties, guarantees, lease agreements, service agreements etc.
2. Third parties
3. Other insurance in the same policy
4. Other insurance in a similar policy
5. Other insurance in a dissimilar policy

Courts Take Three Approaches to ACV - answer 1. Replacement cost minus
depreciation
2. market value
3. the braod evidence rule

Distinguishing Characteristics of Insurance Contracts - answer 1. The principle of
indemnity
2. Utmost good faith
3. Fortuitous losses
4. Contract of adhesion
5. Exchange of unequal amounts
6. Conditional
7. Nontransferable

Two concepts reduce the moral hazards associated with indemnification - answer 1.
Insurance should not over indemnify
2. Insured's should only be indemnified once per loss

Methods by which insurers achieve an equitable distribution of risk cost - answer 1.
Insurance rating plans
2. Coinsurance in property insurance

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Pogba119. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67479 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Recently viewed by you

Exam (elaborations) ·

(2)

IGZ 320: Semester and Exam notes
$12.99
  • (0)
Add to cart
Added