CCP Insurance Policy Interpretation & Coverage Analysis 2

Question 1

Under the doctrine of reasonable expectations, courts will interpret an insurance policy in favor of:

Accepted Answer

The objectively reasonable expectations of the insured

Answer

The doctrine of reasonable expectations holds that courts will honor the objectively reasonable expectations of the insured even if a close reading of policy language would negate them.

Question 2

A 'claims-made' policy differs from an 'occurrence' policy in that it covers claims:

Accepted Answer

Based on when the claim is first made during the policy period

Answer

A claims-made policy provides coverage when the claim is first made against the insured during the active policy period, regardless of when the underlying event occurred.

Question 3

The 'anti-concurrent causation' clause in a property policy is designed to:

Accepted Answer

Exclude loss when an excluded peril contributes to the loss, even if covered perils are also involved

Answer

An anti-concurrent causation clause excludes loss if an excluded peril contributes to the damage in any sequence, even if a covered peril is also present.

Question 4

When a policy contains both a broad named-insured endorsement and a standard additional insured endorsement, a coverage dispute arises. How should the adjuster proceed?

Accepted Answer

Analyze the specific language of each endorsement to determine scope of coverage

Answer

The adjuster must carefully analyze the specific language, scope, and intent of each endorsement to determine which applies and the extent of coverage provided.

Question 5

Which rule of policy construction provides that specific policy language controls over general policy language when the two conflict?

Accepted Answer

Specific over general

Answer

The principle that specific language controls over general language resolves conflicts between broad and narrow policy provisions in favor of the more specific clause.

(CCP) Certified Claims Professional Practice Test

(CCP) Certified Claims Professional Practice Test

CCP Insurance Policy Interpretation & Coverage Analysis 2