Principles of Risk Management and Insurance, 13th Edition

Review Questions

1. Identify the basic parts of an insurance contract.

2. 1. a. Describe the major types of exclusions typically found in insurance contracts.

   2. Why are exclusions used by insurers?

3. 1. a. Define the term “conditions.”

   2. Does the insurer have to pay an otherwise covered loss if the insured fails to comply with the policy conditions? Explain your answer.

4. 1. a. What is the meaning of “named insured”?

   2. Can other parties be insured under a policy even though they are not specifically named? Explain your answer.

5. 1. a. What is an endorsement or rider?

   2. If an endorsement conflicts with a policy provision, how is this problem resolved?

6. 1. a. Describe the following types of deductibles:

      1. straight deductible

      2. calendar-year deductible

      3. aggregate deductible

   2. Explain the ...