Policy Provisions and Concepts Flashcards
6 cards from real Property And Casualty Insurance License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Policy Provisions and Concepts flashcards as text
What is the 'declarations page' (dec page) of an insurance policy?
Answer: The front page summarizing key policy information such as named insured, coverage limits, and premium
The declarations page is the summary sheet at the front of the policy that identifies who is insured, what is covered, the policy period, limits, and premium.
What is an 'endorsement' in an insurance policy?
Answer: A written amendment that modifies the terms of the original policy
An endorsement (also called a rider) is a written document attached to the policy that adds, removes, or changes coverage terms.
What does the 'insuring agreement' of a policy define?
Answer: The insurer's basic promise to pay and the scope of coverage provided
The insuring agreement is the core of the policy where the insurer promises to pay for covered losses in exchange for the premium.
Under the 'conditions' section of a policy, which of the following is typically found?
Answer: Requirements such as prompt loss reporting, cooperation clause, and proof of loss
The conditions section outlines the duties and obligations of both the insured and insurer, including how to report claims, cooperate in investigations, and submit proof of loss.
What is a 'binder' in insurance?
Answer: Temporary written evidence of insurance coverage until a formal policy is issued
A binder is a temporary contract providing proof of insurance coverage while the formal policy is being prepared and issued.
What is the 'principle of indemnity' in insurance?
Answer: Insurance is designed to restore the insured to the same financial position as before the loss, not to profit from it
The principle of indemnity holds that insurance should make the insured whole after a loss but should not allow them to profit from the loss.