Your insured's automobile is badly damaged in an accident. He/she calls to advise that the insurer wants to write-off the car because the estimated repair cost is greater than its "Red Book" actual cash value. Your insured feels that this is unfair and wants the vehicle to be repaired. What should you tell your insured?   Losses are rarely settled according to the "Red Book" value, so you'll negotiate with the insurer for the vehicle to be repaired. Your insured is entitled to obtain an appraisal, for which the costs must be shared equally with the insurer. The insurer must comply with the wishes of your insured so legal action should be taken. You will try to have the insurer waive the deductible to help compensate for the claim being treated as a total loss.

Mike purchased a Personal Auto Policy that included Part D (coverage for damage to your auto). He lost control of his car on an icy road, slid off the road and hit a tree. Ignoring any deductible, what will the insurer pay for the damage to Mike's car? O the lesser of actual cash value or the cost to repair or replace the vehicle O the original purchase price of the vehicle O the replacement cost of the vehicle the greater of actual cash value or the cost to repair or replace the vehicle O nothing

Under a Personal Auto policy, an insured MUST take which of the following acts after a covered loss? Hire an appraiser to evaluate the loss Notify a public adjuster of the loss Take reasonable steps to protect the vehicle from further damage Pay any additional premiums owed on the policy

If you borrow money to purchase a car, and you own and have possession of that car, and you don’t make the required payments in a timely manner as agreed to in the loan documents, the creditor can:     Select an answer from the options below. A raise the price of the car B file a judgement lien C sell the car to someone else D require you to file for bankruptcy

One problem facing insurers is that there is a risk that a person will act differently if he/she does not bear all of the consequences of his/her actions. For instance, people with auto insurance policies may drive less carefully than they would drive if they were going to have to pay the full amount of any damages they caused/created. This problem is known as:           A.           Adverse selection           B.           Consumer deception           C.           Moral hazard           D.           Insurance fraud

. An insured dies in a fire at his/her home caused by careless smoking. What action will the insurer of the dwelling take?   Deny the loss to building and contents as the insured caused the fire. Pay the loss to the building and contents to the insured's estate. Pay the building and contents loss into Court in trust. Be unable to pay the property loss as the named insured is no longer available to sign the proof of loss.

An insured is purchasing a Building and Personal Property Coverage Form (BPP) to cover her business. She asks the agent to explain how her property will be valued in the event of a loss. Which one of the following statements made by her agent accurately describes how the covered property will be valued in the event of loss?     The insurer is obligated to pay replacement cost regardless of whether or not the property has actually been repaired or replaced.     The insurer is obligated to pay the cost to replace the damaged or destroyed property with new property of like kind and quality without any deduction for depreciation or obsolescence.     Insurers underwrite the coverage carefully because some items that can be difficult to value, such as manuscripts, works of art, antiques, and rare articles, are covered for replacement cost.     If the insured elects to accept an ACV claim settlement, the insured is barred from later requesting payment of replacement cost.

A friend of the family believes that depreciation provides him with a reserve to purchase new assets. His secretary has blown up his computer, but he knows he has the funds to replace it in the accumulated depreciation account. You know he is wrong and have grown tired of listening to him going on about it, but he won’t listen to what you have to say. You decide to put him out of his misery by writing a letter to him about it that he may actually read before he realises that it is telling him things he does not want to hear. Write him a letter, using fictitious names and addresses, which defines depreciation and explains why his view is incorrect.

21) Your best friend's apartment has just been robbed, and he had no insurance. What would you suggest to your friend to better protect himself from such losses in the future? A) Purchase renter's insurance and add a personal articles floater. B) Take out personal property replacement cost coverage. C) Take a written and video tape inventory of your property. D) Only B and C above E) A, B, and C above 22) Suppose burglars trashed your apartment and stole your personal property. Your rent is $350 per month and you had to live in another apartment house for two months while the landlord had the apartment put back into livable condition. Under which section of an HO policy would you be covered and how much would you recover because of the move? A) Section I coverage C, $350 B) Section I coverage C, $700 C) Section I coverage D, $350 D) Section I coverage D, $700 E) Section II coverage, $350 23) On your home owners policy ________ protects any personal property that's owned or used by the…

Insurance agent Ricardo is recommending that Rob and Samuel, the owners of a manufacturing firm, put in place a properly funded 'buy sell' agreement. Should one owner die, it protects the surviving business owner, the business itself, the surviving family or other beneficiaries of the deceased owner. How can a properly funded 'buy sell' agreement ensure that the business is protected? Select one: a. It can provide funding through life insurance or other sources, it provides a mandatory sale to the surviving owner, it does not provide guaranteed value as the value of the business will change over time. b. It can provide a guaranteed buyer for the business, it can provide guaranteed value, it saves time, it provides an orderly transition of the business to the new owner. C. It provides a non-mandatory sale, it provides guaranteed funding through life insurance, it does not provide a guaranteed buyer for the business, it helps in the easy valuation of the business. d. It can provide…