Insurance Policies and Coverage Flashcards
6 cards from real CCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Insurance Policies and Coverage flashcards as text
Which section of an insurance policy outlines the specific coverage provided?
Answer: Insuring agreement
The insuring agreement defines what is covered under the policy, setting the scope of protection provided to the insured.
What is the purpose of the 'deductible' in an insurance policy?
Answer: To require the insured to share in the loss
A deductible is the amount the insured must pay out of pocket before the insurance coverage begins to pay for a loss.
Which of the following is typically found in the declarations page of an insurance policy?
Answer: Coverage limits and insured’s information
The declarations page includes essential details such as the policyholder's name, policy period, and coverage limits.
Which part of an insurance policy specifies what is NOT covered?
Answer: Exclusions
Exclusions detail the conditions or items that are not covered by the policy, clarifying the insurer's responsibility.
What is the purpose of an endorsement in an insurance policy?
Answer: To change policy terms or add coverage
Endorsements are amendments or additions that modify the terms or coverage of the original policy.
Which policy type covers all risks except those specifically excluded?
Answer: All-risk (open perils) policy
An all-risk or open perils policy provides broad protection, only excluding losses listed in the exclusions section.