Policy Analysis & Evaluation Flashcards
7 cards from real ACE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Policy Analysis & Evaluation flashcards as text
Which condition requires an insured to promptly notify the insurer of a loss and cooperate in the investigation, and failure to comply may give the insurer grounds to deny the claim?
Answer: Duties in the event of loss condition
The duties in the event of loss condition requires timely notice, cooperation, and proof of loss; non-compliance can void coverage.
A policy contains a 'severability of interests' clause. What is its primary effect?
Answer: Each insured is treated separately so that one insured's conduct does not void coverage for other innocently covered parties
Severability of interests ensures that policy exclusions or conduct of one insured are evaluated separately and do not automatically exclude coverage for other named insureds.
Under ACORD standards, which form is most commonly used to submit a first notice of loss for a commercial property claim?
Answer: ACORD 3
ACORD 3 is the Property Loss Notice form used to report a first notice of loss for property claims.
An umbrella policy responds to a covered loss in which of the following ways?
Answer: It pays excess limits above underlying policy limits once those limits are exhausted
An umbrella policy sits above underlying insurance and responds once the underlying limits are fully exhausted by a covered loss.
When evaluating a directors and officers (D&O) liability policy, 'Side A' coverage specifically protects:
Answer: Individual directors and officers when the company cannot indemnify them
Side A D&O coverage pays directly to individual directors and officers when the corporation is unable or unwilling to indemnify them.
In a policy analysis context, what does 'manuscript policy' mean?
Answer: A custom-drafted policy tailored to a specific insured's unique needs rather than a standard form
A manuscript policy is individually negotiated and drafted for a specific insured, often for large or unusual risks not covered by standard market forms.
Which of the following best describes the role of an ACORD implementation guide in the context of data standards?
Answer: It provides technical specifications and business rules for implementing a specific ACORD transaction or message type
ACORD implementation guides document the technical details, field definitions, and business rules needed to correctly build and exchange a specific ACORD data transaction.