Insurance Policies & Coverage Analysis Flashcards
7 cards from real RIMS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Insurance Policies & Coverage Analysis flashcards as text
A business interruption policy's 'period of restoration' typically ends when:
Answer: The damaged property is repaired or replaced with reasonable speed
The period of restoration concludes when the property could reasonably be repaired or rebuilt, using due diligence, regardless of actual resumption of operations.
Under directors and officers (D&O) liability insurance, 'Side A' coverage is designed to protect:
Answer: Directors and officers directly when the company cannot or will not indemnify them
Side A coverage fills the gap by protecting individual directors and officers when corporate indemnification is unavailable, such as during insolvency.
A 'blanket' property insurance policy differs from a 'specific' policy because it:
Answer: Applies a single limit across multiple locations or property types
A blanket policy provides one combined limit that can apply to any or all covered locations or property items, offering greater flexibility.
In workers' compensation insurance, the 'experience modification factor' (EMR) reflects:
Answer: The insured's past loss experience relative to its industry peers
The EMR compares the insured's actual losses to expected losses for similar businesses, adjusting the premium up or down accordingly.
Which provision in a property policy allows the insurer to take possession of damaged property and attempt to restore it rather than paying a total loss settlement?
Answer: Abandonment clause
The abandonment clause prevents the insured from simply abandoning damaged property to the insurer; the insurer may choose whether to accept or refuse abandoned property.
A 'claims-made' liability policy with a retroactive date of January 1, 2020 will NOT cover a claim filed in 2024 for an incident that occurred in:
Answer: December 2019
Claims-made policies only cover incidents that occurred on or after the retroactive date; a 2019 incident predates the January 1, 2020 retroactive date.
Under the Additional Insured endorsement on a CGL policy, which of the following best describes the scope of coverage typically granted to an additional insured?
Answer: Coverage only for liability arising out of the named insured's ongoing operations
Standard additional insured endorsements limit coverage to liability arising from the named insured's acts or omissions, not the additional insured's own independent negligence.