Connecticut Personal Lines Insurance License Exam — All Questions
2 questions
The portion of an insurance policy that lists the named insured, the covered property, the policy period, and the limits of coverage is the:
- a.Declarations✓
- b.Insuring agreement
- c.Exclusions
- d.Conditions
The declarations page states the specific facts of the policy: the named insured, a description of the covered property, the policy period, the limits of insurance, the premium, and the forms attached. The insuring agreement states what the insurer promises to cover, the exclusions state what is not covered, and the conditions set the rules and duties both parties must follow.
A binder issued by a producer serves to:
- a.Permanently replace the insurance policy
- b.Cancel the insured's coverage
- c.Provide temporary evidence of coverage until the policy is issued✓
- d.List all of the policy's exclusions
A binder is a temporary agreement, oral or written, that provides immediate evidence of coverage until the insurer issues the formal policy or declines the risk. It contains the essential terms so the insured is protected in the interim. A binder is not permanent and is replaced once the actual policy is delivered or the coverage is formally declined.