CPCU 551 Chpt 1 Test
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| A. If all the terms, provisions, and conditions are the same on both policies, each insurer pays its share on a pro rata basis.B. Common Policy Conditions formC. $17,000 ($20,000 less 15%) for the fire loss; $0 (nil) for the vandalism lossD. If the insured does not have control of the property, any act of neglect by others will not affect coverage.E. 1. Valuation (ACV, RC, Selling Price)
2. Coinsurance
3. Duties in the Event of Loss or Damage
4. Appraisals
5. Loss Payment
6. Recovered Property
7. Vacancy
8. Mortgageholders Condition
9. Loss Payable Provision Endorsement F. Sign a sworn proof of loss if requested by the insurer.G. Select the appropriate risk management techniqueH. 3 approaches: 1.(ACV): RC less depreciation.
2. (RC): the cost to replace the property with new property, determined at the time and place of loss 3. Selling Price: Stock sold but not delivered valued at sales price less discounts and expensesI. Actual cash value.J. The total loss payment the property owner will receive, without regard to deductible, is $370,370.K. Address the links in the chain of events and the unrelated events that converge to cause a loss.L. Coins penalizes insds who do not buy coverage equal to 80-100% of the prop's full value. have/should have * % - ded
((Limit of insurance)/(value of covered property x coinsurance percentage)) x amount of covered loss - deductible M. Pete will recoup $37,037 under his insurance policy. [$100,000 / ($150,000 X .90)] X $50,000 = $37,037N. The savings will be $5,250 − $4,800 = $450.O. 1. Cancellation
2. Changes
3. Examination of Books and Records
4. Inspections and Surveys
5. Premiums
6. Transfer of Rights and Duties P. Superseded by state law.Q. Manuscript forms usually offer more favorable terms for insureds than standard forms.R. Reducing the overall severity of the losses that occur.S. A commercial package policy.T. Reserve the right of an insurer to inspect and audit the insured's books and records. |
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