Finance

Janet hit a wall causing a large dent in the fender of her car. She wa

Janet hit a wall causing a large dent in the fender of her car. She was busy at work and delayed reporting the damage to her insurer for 9 months. When she finally reported the claim, her insurer denied payment, stating, “Although such a loss is usually covered, you are required under the terms of […]

Read full post

Date: September 19th, 2020

Eric’s property was damaged in an accident. He phoned his agent to see

Eric’s property was damaged in an accident. He phoned his agent to see if the loss was covered under his property insurance policy. The agent said, “As long as the cause of loss is not specifically excluded in the policy, the loss is covered.” Based on the agent’s answer, what type of insuring agreement appears […]

Read full post

Date: September 19th, 2020

Kate is covered under her employer’s group health plan. She is also co

Kate is covered under her employer’s group health plan. She is also covered as a dependent under her husband’s group health plan. Under the usual coordination-of-benefits provision, how will each company respond to a claim filed by Kate? A) Kate’s plan is primary, and her husband’s plan is excess. B) Her husband’s plan is primary, […]

Read full post

Date: September 19th, 2020

Which of the following statements about a calendar-year deductible is

Which of the following statements about a calendar-year deductible is (are) true? I. It requires the insured to pay a specified amount of each claim regardless of when the claim occurs during the year and regardless of any previous claims during the year. II. It is used only in policies which cover direct property losses. […]

Read full post

Date: September 19th, 2020

Under the terms of Jenny’s auto insurance policy, she must pay the fir

Under the terms of Jenny’s auto insurance policy, she must pay the first $500 of any physical damage loss to her vehicle before her insurer will pay anything. What type of deductible is included in Jenny’s auto insurance policy? A) calendar-year deductible B) waiting period C) straight deductible D) aggregate deductible     ANSWER Answer: […]

Read full post

Date: September 19th, 2020

Mark reviewed his homeowners policy. He learned that his personal prop

Mark reviewed his homeowners policy. He learned that his personal property was insured on an actual cash value basis. He would like replacement cost coverage on his personal property. He contacted his agent who said, “I’ll simply add an amendment to your contract that changes the basis of recovery to replacement cost.” The written provision […]

Read full post

Date: September 19th, 2020