Podcast
Questions and Answers
What does the Louisiana Valued Policy Law (LVPL) apply to?
What does the Louisiana Valued Policy Law (LVPL) apply to?
- Real property
- Any lawful and substantial economic interest in the safety of property (correct)
- All types of property damage
- Personal property damaged by covered perils
What does the LVPL require insurers to do?
What does the LVPL require insurers to do?
- Determine the value of the property at the time the policy is written
- Use the valuation to determine the premium charge (correct)
- Pay the policy limits to the insured
- All of the above
What is covered under a Standard Fire Policy?
What is covered under a Standard Fire Policy?
- Fires caused by lightning, natural disasters, gas explosions, and faulty wiring
- Removal of debris
- Internal explosions
- All of the above (correct)
What property can be covered under a Standard Fire Policy?
What property can be covered under a Standard Fire Policy?
What does the rule of indemnity, or indemnity principle, state?
What does the rule of indemnity, or indemnity principle, state?
Where are liberalization clauses most likely to be found?
Where are liberalization clauses most likely to be found?
What is the purpose of a liberalization clause in an insurance policy?
What is the purpose of a liberalization clause in an insurance policy?
What does a standard homeowners insurance policy include?
What does a standard homeowners insurance policy include?
What is the purpose of the 'subrogation' right for the insurance company?
What is the purpose of the 'subrogation' right for the insurance company?
What determines the loss settlement amount in property insurance?
What determines the loss settlement amount in property insurance?
What do loss settlement provisions in insurance policies detail?
What do loss settlement provisions in insurance policies detail?
What are the three loss settlement options in property insurance?
What are the three loss settlement options in property insurance?
What does a duty to defend insurance clause provide the insurer with?
What does a duty to defend insurance clause provide the insurer with?
What does a standard mortgage clause protect the lender from?
What does a standard mortgage clause protect the lender from?
What does a loss payable clause allow?
What does a loss payable clause allow?
What does 'No benefit to bailee' in insurance policies mean?
What does 'No benefit to bailee' in insurance policies mean?
What does Louisiana's Valued Policy Law require insurance companies to do?
What does Louisiana's Valued Policy Law require insurance companies to do?
Flashcards are hidden until you start studying
Study Notes
Insurance Policy Provisions and Settlement Options
- "Subrogation" or "subro" is the right of the insurance company to seek reimbursement from the at-fault party after paying a covered claim, protecting the policyholder and insurer from losses that aren't their fault.
- Loss settlement amount in property insurance depends on the type of loss cost settlement option agreed upon in the homeowner's insurance policy.
- Loss settlement provisions detail how a claim will be paid, including replacement cost payment for the dwelling and personal property, and may include a recoverable depreciation clause.
- The three loss settlement options are actual cash value, replacement cost, and agreed value, each with different implications for claim payment.
- A duty to defend insurance clause gives the insurer the right to defend the policyholder against covered lawsuits, including hiring lawyers and deciding on settlements or court cases.
- A standard mortgage clause protects the lender if the borrower intentionally damages the mortgaged property, forming a separate contract between the insurer and mortgagee.
- A loss payable clause allows a third party to be paid for a loss instead of the insured or beneficiary.
- "No benefit to bailee" in insurance policies means only the policyholder can benefit from the insured property, and insurance won't cover damages while the property is in the possession of a third party.
- Louisiana's Valued Policy Law requires insurance companies to pay the full value of a policy to the insured if the property is a total loss, irrespective of the actual cash value at the time of the loss.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
