What must happen in order for an insurance company to make a payout? Check all that apply.

a. The insurance company must verify the claim.

b. The insured party must file a claim.

c. The insured party must purchase property.

d. The insurance policy must be in place.

e. The insured party must experience a covered loss.

Answer:

a. The insurance company must verify the claim.

b. The insured party must file a claim.

d. The insurance policy must be in place.

e. The insured party must experience a covered loss.

Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

In insurance,

In insurance, A) contracts made by the agent are considered to be contracts of the producer B) contracts made by the principal are considered to be contracts of the agent C) the insurer is the principal and the producer is the agent D) the producer is the principal and the insurer is the agent Answer: the insurer is the principal and the producer is the agent

Which is generally true regarding insureds who have been classified as preferred risks

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