An insured requests to add a rental property onto their Homeowner's policy and tells their Broker that a family will be moving in. Two months later, there is a fire resulting in a total loss of the rental property. Upon inspection, the claims adjuster discovers that the property was rented to four students instead. How will the policy respond to the loss? OA) Deny the claim as the fire is not an insured peril. B) Deny the claim due to material change in risk in the occupancy. OC) Cover the loss as the type of tenant does not matter. OD) Cover the loss, but subrogate against the students' insurance policy. remaining What is an endorsement? OA) An amendment that changes the policy terms & conditions OB) An addition to the policy wordings OC) A different version of the policy wordings OD) A mandatory rule applicable to all the policies
An insured requests to add a rental property onto their Homeowner's policy and tells their Broker that a family will be moving in. Two months later, there is a fire resulting in a total loss of the rental property. Upon inspection, the claims adjuster discovers that the property was rented to four students instead. How will the policy respond to the loss? OA) Deny the claim as the fire is not an insured peril. B) Deny the claim due to material change in risk in the occupancy. OC) Cover the loss as the type of tenant does not matter. OD) Cover the loss, but subrogate against the students' insurance policy. remaining What is an endorsement? OA) An amendment that changes the policy terms & conditions OB) An addition to the policy wordings OC) A different version of the policy wordings OD) A mandatory rule applicable to all the policies
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:An insured requests to add a rental property onto their Homeowner's policy and tells their Broker that a family will be
moving in. Two months later, there is a fire resulting in a total loss of the rental property. Upon inspection, the claims
adjuster discovers that the property was rented to four students instead. How will the policy respond to the loss?
OA) Deny the claim as the fire is not an insured peril.
B) Deny the claim due to material change in risk in the occupancy.
OC) Cover the loss as the type of tenant does not matter.
OD) Cover the loss, but subrogate against the students' insurance policy.
Transcribed Image Text:remaining
What is an endorsement?
OA) An amendment that changes the policy terms & conditions
OB) An addition to the policy wordings
OC) A different version of the policy wordings
OD) A mandatory rule applicable to all the policies
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