Personal Lines Everything Study Guide Questions And Correct Answers

When an insurer requires a written proof of loss, the proof of loss form must be furnished by the insurer to the insured within _____ days after the receipt from the insured having given notice of a pending claim. {Ans: 15 days}What are Moral Hazards? {Ans: Can be defined as a tendency to commit illegal acts for monetary gain. Example: in the insurance world this would be a person who submits a false claim.}Homeowner's policies require the insured to carry a minimum amount of coverage to be eligible for full payment of partial losses to the dwelling (residence premises) and other/appurtenant structures. The minimum coinsurance amount is ____% of the replacement value of the dwelling (Coverage A). {Ans: 80% For example, if B has a dwelling with a $300,000 replacement cost, she must carry at least 80% of the value or $240,000. If she carries this amount, any partial losses up to $240,000 are fully covered. If the loss exceeds the amount carried, the difference is not paid. If B only decides to carry $200,000 and she suffers a $50,000 loss, how much would she be paid for the loss? To determine the amount B will be