Insurance Policies & Coverage Analysis Flashcards
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Read the first 7 Insurance Policies & Coverage Analysis flashcards as text
Under the ISO HO-3 special limits of liability, what is the standard limit for loss of money?
Answer: $200
The current ISO homeowners forms limit money, bank notes, and coins to $200.
During the policy period, an insurer revises its homeowners form to broaden coverage with no extra premium. Which condition applies the broader coverage to current policyholders?
Answer: Liberalization clause
The liberalization clause automatically extends broadened coverage that doesn't require extra premium to existing policies.
An adjuster continues investigating a claim but tells the insured in writing that the insurer may later deny coverage based on a late-notice condition. What is this communication called?
Answer: Reservation of rights letter
A reservation of rights letter lets the insurer keep investigating or defending without waiving its right to deny coverage later.
The insured's actions or statements lead the insurer to reasonably believe a policy provision won't be enforced, and the insured relies on that to their detriment. Which doctrine may stop the insurer from enforcing the provision?
Answer: Estoppel
Estoppel stops a party from asserting a right when its conduct caused another party to reasonably rely on it to their detriment.
Under the ISO commercial property Agreed Value optional coverage, what happens to the coinsurance condition?
Answer: It is suspended for the stated period
Agreed Value suspends the coinsurance condition as long as the insured carries the agreed amount for the stated period.
A commercial umbrella policy pays a covered claim that no underlying policy covers. What does the insured usually pay before the umbrella responds?
Answer: A self-insured retention
When the umbrella drops down to cover a loss with no underlying coverage, the insured first pays a self-insured retention.
Under the HO-3 duties-after-loss condition, when must the insured send a signed, sworn proof of loss?
Answer: Within 60 days after the insurer's request
The HO-3 requires a signed, sworn proof of loss within 60 days after the insurer asks for it.
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