Which statement most accurately describes insuring agreement in a national/core personal-lines context?
A. A condition states duties or rules that affect coverage, claims, or policy rights
B. An endorsement changes policy terms, coverage, limits, or conditions
C. The insuring agreement states the insurer's basic coverage promise
D. Replacement cost pays covered repair or replacement without depreciation deduction, subject to policy requirements
Source: Insurance Information Institute — Insurance Handbook, Glossary and policy-structure discussion, locator 'Insuring Agreement'; https://www.iii.org/sites/default/files/docs/pdf/Insurance_Handbook_20103.pdf
An applicant asks about condition. Which explanation is accurate?
A. A condition states duties or rules that affect coverage, claims, or policy rights
B. An exclusion removes or limits coverage for specified losses, property, persons, or causes
C. A deductible is the insured's share of covered loss before the insurer pays
D. Open-perils coverage applies unless the cause of loss is excluded
Source: Insurance Information Institute — Insurance Handbook, Glossary and policy-structure discussion, locator 'Condition'; https://www.iii.org/sites/default/files/docs/pdf/Insurance_Handbook_20103.pdf
Which option correctly distinguishes exclusion from related personal-lines concepts?
A. An exclusion removes or limits coverage for specified losses, property, persons, or causes
B. An endorsement changes policy terms, coverage, limits, or conditions
C. A limit of insurance caps what the insurer will pay for covered loss under that coverage
D. Named-perils coverage applies only to causes of loss listed in the policy
Source: Insurance Information Institute — Insurance Handbook, Glossary and policy-structure discussion, locator 'Exclusion'; https://www.iii.org/sites/default/files/docs/pdf/Insurance_Handbook_20103.pdf
A producer is reviewing endorsement with a client. Which statement should the producer use?
A. A deductible is the insured's share of covered loss before the insurer pays
B. Actual cash value commonly reflects replacement cost minus depreciation unless policy or law provides otherwise
C. Insurable interest means the insured would suffer financial loss if the property is damaged or destroyed
D. An endorsement changes policy terms, coverage, limits, or conditions
Source: Insurance Information Institute — Insurance Handbook, Glossary and policy-structure discussion, locator 'Endorsement'; https://www.iii.org/sites/default/files/docs/pdf/Insurance_Handbook_20103.pdf
Which statement most accurately describes deductible in a national/core personal-lines context?
A. A limit of insurance caps what the insurer will pay for covered loss under that coverage
B. Replacement cost pays covered repair or replacement without depreciation deduction, subject to policy requirements
C. A loss payee may receive payment for covered property loss because of a financial interest
D. A deductible is the insured's share of covered loss before the insurer pays
Source: National Association of Insurance Commissioners — Glossary of Insurance Terms, entry 'Deductible'; https://content.naic.org/glossary-insurance-terms
