Insurance Policy Basics

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

• Breakage of glass.

• Theft of personal property.

• Damage from fire or smoke.

• Vandalism or malicious mischief.

What is the failure to disclose a material fact called?

• Concealment

• Omission

• Misrepresentation

• Fraud

What is a foreign insurer?

• An insurer with their home office in another state.

• An insurer that only operates within its home state.

• An insurer that provides coverage for foreign entities only.

• An insurer that has no physical presence in any state.

What does pro-rata mean?

• Equal distribution among parties

• Proportionate, not equal

• A fixed amount for each party

• A method of calculating interest

What is a representation in insurance terms?

• A substantial truth.

• A minor detail.

• An exaggerated claim.

• A legal obligation.

What does the Terrorism Risk Insurance Act (TRIA) apply to?

• Commercial policies only.

• Personal insurance policies only.

• Government insurance policies only.

• All types of insurance policies.

Where are the cancellation provisions found in a policy?

• In the conditions section of the policy.

• In the introduction section of the policy.

• In the exclusions section of the policy.

• In the endorsements section of the policy.

What does consideration consist of in a contract?

• The first premium paid, the answers to the questions on the application, and the applicant's signature.

• The total value of the contract and the parties involved.

• The duration of the contract and the payment terms.

• The legal jurisdiction and the governing law.

Who is an insured on a PAP?

• Any permissive user of your car, except a mechanic.

• Only the owner of the vehicle.

• Anyone who has a driver's license.

• Only family members living in the same household.

How can you determine who is an insured on a PAP policy?

• By reading the definitions.

• By checking the policy number.

• By contacting the insurance agent.

• By reviewing the claims history.