Property Insurance FundamentalsCâu 235 / 474
The limit of insurance shown on the declarations page of a property policy represents:
a.A sum guaranteed on any covered loss
b.The most payable, not a sum guaranteed
c.The value the insurer has placed on it
d.The least the insurer pays per claim
Giải thích
A limit caps what the insurer can be required to pay; the payment itself is measured by the loss, the valuation basis and the deductible, and is usually far smaller. Treating the limit as a guaranteed sum is the misunderstanding behind demands for the whole limit after a small fire. The limit is also not the insurer's appraisal of the property, and it is a maximum rather than a minimum.
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Câu hỏi liên quan cùng chủ đề
- Two policies share a loss pro rata: one carries an $80,000 limit, the other $120,000. A covered $50,000 loss occurs. The $80,000 policy pays:
- Which of these people has an insurable interest in one particular house?
- Two partners each own an undivided one-half interest in a $300,000 rental building. One buys a policy in her own name with a $300,000 limit. Fire destroys the building. She may collect:
- Blanket insurance differs from specific insurance in that a blanket limit:
- The practical effect of an agreed value provision on a property policy is that:
- Under a stated amount arrangement, a covered loss is settled at:
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