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.

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

Whole-life insurance policies typically can be surrendered while the insured is still alive in exchange for a determinable amount of money called the cash surrender value. When a company buys a life insurance policy on the life of a key officer to protect the company against the untimely loss of a valuable resource in the event the officer dies, how should the company account for the cash surrender value?

. 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.

(Based on Appendix 12A) Whole-life insurance policies typically can be surrendered while the insured is stillalive in exchange for a determinable amount of money called the cash surrender value. When a company buysa life insurance policy on the life of a key officer to protect the company against the untimely loss of a valuableresource in the event the officer dies, how should the company account for the cash surrender value?

If Jack damages his car by skidding on ice and colliding with a fence, his property damage liability would cover the damage to his car. True False Your insurance policy carries a $200 deductible for collision and $500 deductible for comprehensive. If you cause an accident which results in the following repairs and losses to your car and possessions, what will be the reimbursement from the insurance company under your collision and comprehensive coverage? • Replacement of trailer hitch $500 • Replacement of rear bumper $700 • Replacement of computer (in trunk) $400 • Replacement of rear windshield $400 $1500 $1800 $1400 Onothing

Sharp Accounting rents a floor in an office building. Their insurance advisor has suggested that they consider coverage under the Legal Liability Coverage Form. The Legal Liability Coverage Form     Provides a lower premium rate than direct property insurance on the covered real property.     Contains a coinsurance condition that applies to property in Sharp's custody.     Contains a deductible that applies to damage caused by Sharp.     Provides coverage for property of others in Sharp's custody regardless of fault.

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.