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Questions and Answers
What is the purpose of the periodic reports of actual values that the insured must submit to the insurer?
What is the purpose of the periodic reports of actual values that the insured must submit to the insurer?
- To determine the estimated premium at the beginning of the policy term
- To select the limit of insurance
- To determine the valuation basis of the policy
- To calculate the final premium (correct)
What is the consequence of not submitting a report on time at the time of a loss?
What is the consequence of not submitting a report on time at the time of a loss?
- The insured can only recover the value that was last reported (correct)
- The insured can only recover 50% of the loss
- The insured can only recover the estimated premium
- The insured can only recover up to the applicable limit of insurance
What is the percentage of the loss that the insured can recover if the first report is overdue at the time of a loss?
What is the percentage of the loss that the insured can recover if the first report is overdue at the time of a loss?
- 75% (correct)
- 80%
- 50%
- 90%
What should the insured do if the values reported exceed the limit of insurance?
What should the insured do if the values reported exceed the limit of insurance?
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What is the basis of the premium payment?
What is the basis of the premium payment?
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What should the insured report to avoid a potentially severe penalty?
What should the insured report to avoid a potentially severe penalty?
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