Property Insurance FundamentalsCâu 237 / 474
The practical effect of an agreed value provision on a property policy is that:
a.The limit rises automatically during the term
b.The coinsurance condition is suspended for the term
c.The deductible is suspended for the policy term
d.The insurer values all contents at replacement cost
Giải thích
Under an agreed value provision the insurer and the insured settle on a value in advance, usually from a signed statement of values, and the coinsurance condition is set aside so no penalty can be assessed on a partial loss. It does not remove the deductible, which still applies to every loss. Automatic increases in the limit describe inflation guard, a different feature.
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Câu hỏi liên quan cùng chủ đề
- 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:
- The limit of insurance shown on the declarations page of a property policy represents:
- Blanket insurance differs from specific insurance in that a blanket limit:
- Under a stated amount arrangement, a covered loss is settled at:
- A policy with a $240,000 dwelling limit carries a 4% annual inflation guard. At the next renewal, twelve months later, that limit will be about:
- A furnished house whose owners have been travelling for two months is best described as:
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