Policy Structure & ProvisionsPregunta 457 de 474
The main reason a homeowners form excludes flood is that a flood loss:
a.Is caused by the owner's neglect
b.Is paid by the personal auto policy
c.Hits a whole region at one time
d.Happens slowly instead of suddenly
Explicación
Insurers exclude perils that are catastrophic, because a single event soaks thousands of insureds at once and defeats the spread of risk that pooling depends on. Other exclusions exist for different reasons: wear and tear is excluded as a certainty rather than an accident, and auto liability is excluded because a personal auto policy is the right place for it. Flood is excluded for the catastrophe reason.
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Preguntas relacionadas de este tema
- A binder issued by a producer serves to:
- The part of a policy in which the insurer states what it promises to pay for is the:
- The insured's duties after a loss, the appraisal clause and the cancellation clause are all found among the policy's:
- A producer with binding authority binds coverage by phone at 9 a.m.; the house burns at noon, before the insurer ever sees the application. The loss is:
- Under the liberalization clause, when an insurer broadens its form without charging more, an existing insured:
- The entire contract provision means the agreement between insurer and insured consists of:
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