Chapter 2 review

In insurance contracts, when is the offer usually made?

The binding force in any contract is the

The purpose of the Terrorism Risk Insurance Act (TRIA) was to

Which method of loss valuation is contrary to the principle of indemnity?

In insurance contracts, when does acceptance usually occur?

What part of a policy shows the amount of insurance, premium, and policy terms?

Untrue statements on the application unintentionally made by insureds that, if discovered, would alter the underwriting

receive a new policy in 5 business days.Even though the policy is not issued,the applicant's home is temporarily covered

The binder is a temporary insurance contract that goes in effect prior to the policy issue

is the individual whose name appears on the policy's Declarations.

What is consideration on the part of the insurer?

Acceptance takes place when an insurer’s underwriter Declines the application and issues a policy.

Stipulates how the amount of damaged or lost property will be determined if the insured and the principal do not agree

In commercial property policies, who has control of the policy, and who can cancel it?

What does an endorsement do to an insurance contract?

Who is an insured in property and casualty insurance?

Persons who are not named on the declaration page of a policy but who are protected 

When would a misrepresentation on the insurance application be considered fraud?

According to the Gramm-Leach-Bliley Act, when must insurers give the 2 required disclosures to customers?

What part of an insurance policy indicates the general rules or procedures that the insurer and insured agree to follow

What insurance principle does pro rata liability protect?

When an insurance policy does not offer a continuation or replacement at its expiration date, it is considered a

Which of the following is a mandatory part of an insurance policy that varies with each individual policy?

The policy period stated in an insurance policy is on the declarations page

Persons covered under an insurance policy, whether named or not, are known as the

Which of the following would NOT be considered a source of insurability information by an insurer?

portion of premium paid in advance that now belongs to the insurer because it applies to the elapsed part of the policy

a professional assessment to determine extent of damage is an appraisal

What provision defines how a policy will respond if there is more than one insurance policy written on the same risk?

What section personalizes an insurance policy?

Elements of a Contract

When does pro rata liability apply?

When is an appraisal needed and how can it be requested?

A sworn statement from an insured notifying the insurer about a loss

 part of an insurance policy contains the insurer’s promise to pay a claim

What is the threshold day that a property can be vacant before it's unsustainable,

In property and casualty policies, what is required for an assignment to be valid?