Insurance Policy Structure Quiz
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Questions and Answers

What are the three major types of Exclusions mentioned in the text?

  • Excluded events, Excluded liabilities, Excluded supplementary coverage
  • Excluded perils or causes of loss, Excluded losses, Excluded property (correct)
  • Excluded risks, Excluded provisions, Excluded policy changes
  • Excluded coverage, Excluded claims, Excluded endorsements
  • What are typical examples of excluded perils under a homeowners policy?

  • Windstorm, hail, and lightning
  • Flood, earthquake, and nuclear radiation (correct)
  • Explosion, smoke, and riot
  • Fire, theft, and vandalism
  • What do Endorsements and Riders do in an insurance policy?

  • Exclude specific perils from coverage
  • Add to, delete, or modify the provisions in the original insurance contract (correct)
  • Provide supplementary coverage only
  • Change the insurer's investigation process
  • What does the declarations page of an insurance policy typically identify?

    <p>The insured, covered risks or property, policy limits, and policy period</p> Signup and view all the answers

    In the insuring agreement of an insurance policy, what does the insurer agree to do?

    <p>Pay losses for covered perils, provide certain services, or defend the insured in a liability lawsuit</p> Signup and view all the answers

    What are the two basic forms of an insuring agreement in an insurance policy?

    <p>Named–perils coverage and All–risk coverage</p> Signup and view all the answers

    What do conditions in an insurance policy do?

    <p>Qualify or place limitations on the insurer’s promise to pay or perform</p> Signup and view all the answers

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