Insurance Policy Basics

What is the required coinsurance percentage on dwelling fire and HO policies?

• 70%

• 75%

• 80%

• 85%

What happens if the lender is not sent notice of cancellation and the property burns down?

• The lender (mortgagee) has protection in the amount owed on the loan

• The borrower loses all rights to the property

• The insurance company pays the borrower directly

• The lender must forgive the loan entirely

What is subrogation in insurance?

• The insurer's right to sue the negligent third party for damages paid to you

• The process of determining the value of an insurance claim

• The act of transferring an insurance policy to another party

• The requirement for policyholders to report claims within a specific timeframe

What can a consumer do if denied coverage due to credit?

• Get a copy of their credit report for free from the consumer reporting agency

• Request a review of their application by a different insurer

• File a complaint with the Better Business Bureau

• Seek legal advice from a consumer rights attorney

Who is considered an insured under an HO policy?

• Residents of your household who are relatives, or any other person under age 21 who is in your care

• Only the policyholder and their spouse

• Any person over the age of 21 living in the household

• Only relatives of the policyholder living outside the household

What does the Gramm-Leach-Bliley Act require?

• A customer must be given a privacy notice at the time the customer relationship is initially established and annually thereafter

• A customer must provide their social security number to the bank upon opening an account

• A customer must receive a monthly statement detailing all transactions made

• A customer must consent to share their information with third-party marketers

What is not covered by dwelling property policies after 60 days of vacancy?

• Breakage of glass

• Theft of personal property

• Fire damage to the structure

• Vandalism of the property

What is the minimum age to enter into a legal contract?

• 16

• 18

• 21

• 25

What do the exclusions in a policy list?

• The perils that are not covered

• The benefits provided by the policy

• The conditions for policy renewal

• The premium payment schedule

What is the right to salvage in insurance?

• It belongs to both parties

• It belongs only to the insurer

• It belongs only to the insured

• It is not recognized in insurance