Property & Casualty Insurance Coverage Flashcards
7 cards from real CALA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Property & Casualty Insurance Coverage flashcards as text
Under a standard homeowners policy, which of the following losses would be covered by Coverage B (Other Structures)?
Answer: A detached garage damaged by a fallen tree
Coverage B applies to detached structures on the residence premises; wind-blown tree damage is a covered peril under standard HO forms.
A commercial general liability (CGL) policy's 'products-completed operations' hazard covers claims arising from:
Answer: Bodily injury caused by a product after it leaves the insured's control
Products-completed operations coverage applies to BI or PD arising from a product or completed work after it has left the insured's possession.
Which valuation method pays the cost to repair or replace damaged property with like kind and quality without deducting for depreciation?
Answer: Replacement cost value
Replacement cost value (RCV) pays the full cost to repair or replace without subtracting depreciation.
An insured's auto policy has a $500 comprehensive deductible. A deer strikes the vehicle, causing $1,800 in damage. How much does the insurer pay?
Answer: $1,300
Animal strikes are covered under comprehensive (other-than-collision); the insurer pays $1,800 minus the $500 deductible = $1,300.
The 'inland marine floater' is best suited to insure which type of property?
Answer: Movable personal property frequently transported to different locations
Inland marine policies are designed for property that moves — such as cameras, contractor equipment, or fine art in transit.
Which clause in a property policy requires the insured to carry insurance equal to a specified percentage of the property's value to avoid a co-insurance penalty?
Answer: Coinsurance clause
The coinsurance clause penalizes the insured for underinsuring by paying only a proportionate share of a partial loss.
Under a personal auto policy, Medical Payments coverage (MedPay) pays for reasonable medical expenses regardless of:
Answer: Who was at fault for the accident
MedPay is a first-party, no-fault coverage that pays medical expenses for the insured and passengers without regard to fault.