Chapter 3INSURANCE BASICS

ALL OF THE FOLLOWING ARE TORTS EXCEPT:

A. ABSOLUTE LIABLITYB. NEGLIGENCEC. LEGAL WRONGD. ROBBERY

WHAT IS AN UNINTERRUPTED CHAIN OF EVENTS RESULTING FROM THE NEGLIGENTACT THAT PRODUCES THE LOSS?

A. PROXIMATE CAUSEB. ABSOLUTE LIABILITYC. INTERVENING CAUSED. CONTRIBUTORY NEGLIGENCE

GENERALLY, THE DEFENSE OF COMPARATIVE NEGLIGENCE IS:

A. REDUCES INJURY AND DAMAGE AWARDS PROPORTIONALLY WHEN THE DEFENDANT

IS NEGLIGENT

B. REDUCES INJURY AND DAMAGE AWARDS PROPORTIONALLY WHEN BOTH THE

PLAINTIFF AND DEFENDANT ARE NEGLIGENT

C. REDUCES INJURY AND DAMAGE AWARDS PROPORTIONALLY WHEN THE PLAINTIFF IS NEGLIGENT

D. NONE OF THE ABOVE

IF PARTIES ARE HELD LIABLE WITHOUT REGARD TO FAULT OR NEGLIGENCE, THIS IS APPLIED:

A. VICARIOUS LIABILITYB. ABSOLUTE LIABILITYC. STRICT LIABILITYD. GROSS NEGLIGENCE

TRADITIONALLY, LIABILITY INSURANCE HAS BEEN WRITTEN ON THIS BASIS:

A. CLAIMS MADEB. PROXIMATE CAUSEC. OCCURRENCED. PUNITIVE

FOR PROPERTY INSURANCE PURPOSES, THE TERM VACANT GENERALLY IMPLIES:

A. NO VALUED ITEMSB. NO OCCUPANTSC. NO BUSINESSD. NO CONTENTS OR OCCUPANTS

NONE OF THE FOLLOWING ALLOW VARIATION ON INSURANCE COVERAGEDURING A POLICY PERIOD EXCEPT:

A. ALL RISK COVERAGEB. BLANKET COVERAGEC. FLOATING POLICIESD. REPORTING FORMS

ACV MEANS “THE REPLACEMENT COSTOF DAMAGED OR DESTROYED PROPERTYAT THE TIME OF LOSS” LESS:

A. DEPRECIATIONB. POLICY LIMITSC. APPRECIATIOND. TOTAL VALUE

WITH REGARD TO A VALUED POLICY, ALL OF THE FOLLOWING ARE TRUE EXCEPT:

A. APPLIES TO REAL PROPERTYB. A TOTAL LOSS MUST OCCURC. A PARTIAL LOSS MUST OCCURD. ALL OF THE ABOVE ARE FALSE

NONE OF THE FOLLOWING ARE MAJORCOMPONENTS OF AN INSURANCE POLICYEXCEPT:

A. DECLARATIONS; EXCLUSIONS;SET CLAUSES; SUPPLEMENTS

B. EXCLUSIONS; ENDORSEMENTS; CONDITIONS; DEFINITIONS

C. CONDITIONS; DEFINITIONS; INSURING AGREEMENT; DEDUCTIONS

D. EXCLUSIONS; CONDITIONS; DECLARATIONS; INSURING

AGREEMENT

COINSURANCEDID__________ x LOSS - DEDUCTIBLE = PYMT

SHOULD

DO NOT FORGET POLICY LIMITS!REMOVE THE ZEROS! PRACTICE! PRACTICE!

LIABILITY POLICIES WRITTEN WITH SPECIFIC LIMITS FOR BODILY INJURY AND PROPERTY DAMAGE ARE SAID TO BE WRITTEN WITH:

A. SEPARATE LIMITSB. SPLIT LIMITSC. COMBINED LIMITSD. AGGREGATE LIMITS

THE DIFFERENCE BETWEEN AN OCCURRENCE AND AN AGGREGATE LIMIT IS:

A. AN AGGREGATE LIMIT HAS NO POLICY LIMITS

B. AN AGGREGATE LIMIT DOES NOT REDUCE THEINSURANCE FOR FUTURE LOSSES

C. AN OCCURRENCE LIMIT DOES NOT REDUCE THE INSURANCE FOR FUTURE LOSSES

D. AN OCCURRENCE LIMIT DOES REDUCE THEINSURANCE FOR FUTURE LOSSES

MOST POLICY PERIODS BEGIN AND ENDAT :

A. 12:00 A.M.B. 12:00 P.M.C. 12:01 A.M.D. 12:01 P.M.

ONCE A POLICY HAS BEEN IN EFFECT FOR 60 DAYS, THE INSURER MUST GIVE THE NAMED INSURED AT LEAST _______________ NOTICE FOR NONRENEWAL.

A. 10 DAYSB. 90 DAYSC. 60 DAYSD. 30 DAYS

WHEN PREMIUMS ARE REFUNDED BASEDON THE EXCACT AMOUNT OF TIME THE POLICY WAS IN FORCE, IT IS KNOWN AS:

A. FLAT CANCELLATIONB. PRO RATA CANCELLATIONC. UNEARNED PREMIUMD. SHORT RATE CANCELLATION