Exam 10: Structure and Analysis of Insurance Contracts

A claim for the death benefit under this receipt will be paid if death occurs while one's application for life insurance is being processed even if the deceased is found not to be insurable.Identify this receipt.

Actual cash value and replacement cost are the most common means of valuing property loss.

These are statements that identify the person(s) or organization(s) covered by the contract, give information about the loss exposure, and provide the basis upon which the contract is issued and the premium determined.This information may be obtained orally or in a written application.This section also includes the period of coverage and limitations of liability.Identify this section in an insurance contract.

_____ loss to property is the value that is physically destroyed or damaged, not the loss caused by inability to use the property.

When loss is caused by property damage not owned by the business, it is considered a(n) _____.

Perpetual insurance policies remain in force:

The maximum amount payable by the insurance policy is known as _____.

A policy clause, termed _____ clause, addresses the potential problem of duplicating coverage when two or more similar policies cover the same exposure.

Losses that are accidental make prediction difficult, cause coverage to be expensive, and represent circumstances in which coverage would be contrary to public policy.

The _____ value of a life insurance policy represents the value paid upon the insured's death.

Summarize the difference between named-perils policy and open-perils policy.

A(n) _____ makes a change in the life/health insurance policy to which it is attached.

All insurance policies specify the period of coverage.

A(n) _____ makes a change in the property/casualty insurance policy to which it is attached.

The function of the agent is to induce a potential insured to make an offer.

Policies that cover loss of use of property without physical damage to the property are called:

This receipt does not bind the coverage of life insurance at the time it is issued, but it does put the coverage into effect retroactive to the time of application if one meets all the requirements for insurability as of the date of the application.A claim for benefits because of death prior to issuance of the policy generally will be honored, but only if you were insurable when you applied.Identify this receipt.

In most states, an oral binder is as legal as a written one, but in case of a dispute:

A named-perils policy usually requires a higher premium than an open-perils policy.

_____ represent the third major part of an insurance policy and explicitly identify losses not covered by the policy.