ARPCI Arkansas Property and Casualty Insurance - Set 5 - Part 3
Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.
Question 41: A commercial building sustains fire damage overnight, but the owner waits several weeks before saying anything to the insurer about what happened. Which duty listed among the standard post loss conditions has the owner most clearly failed to satisfy through this lengthy, unexplained delay in reporting the fire?
Question 42: A property owner sells a building covered under a commercial property policy and tells the buyer he is simply transferring his existing policy to the new owner without contacting the insurer. Under the standard assignment provision, what must occur before this transfer of the policy can take effect?
Question 43: An insured argues that because a claims adjuster once verbally overlooked a minor policy requirement on an earlier claim, the insurer can never enforce that same requirement again. Which principle found in the standard conditions most directly defeats the insured's argument that the requirement was permanently waived?
Question 44: Midway through a homeowners policy period, the insurer files a revised edition of its standard form with the state that broadens coverage without charging any extra premium. Which policy provision automatically extends this broader coverage to policies already in force, without requiring the insured to request an endorsement?
Question 45: After paying a homeowner's claim for damage a negligent contractor caused, the insurer wants to recover the amount it paid directly from that contractor. Which right, standard in property and casualty policies, allows the insurer to step into the insured's shoes and pursue the responsible third party for reimbursement?
Question 46: After a covered fire damages a dwelling, the insurer reviews the policy's claim settlement provisions to decide how to resolve the claim. Which of the following actions could the standard property claim settlement options allow the insurer to choose, instead of simply paying the insured a straightforward cash settlement?
Question 47: A liability insurer believes a lawsuit filed against its insured is completely without merit and likely to be dismissed early. Despite this belief, what must the insurer still do for the insured once a covered claim triggers the insuring agreement, according to the standard duty to defend provision?
Question 48: A named insured intentionally sets fire to a covered building, which would normally void all coverage under the policy's fraud provisions. Despite the insured's own wrongdoing, what protection does the standard mortgage clause typically provide to an innocent mortgagee named in the policy's declarations for this same loss?
Question 49: A lender is named on an auto policy under a simple loss payable clause rather than a mortgage clause. If the insured's own misrepresentation on the application would void the insurer's obligation to pay, what happens to the lender's right to collect under this simple loss payable arrangement?
Question 50: A dry cleaner damages a customer's coat while it is in the dry cleaner's care, and the dry cleaner argues the customer's homeowners policy should pay for the loss instead of the dry cleaner's liability coverage. Which standard provision prevents a bailee from shifting this responsibility onto the customer's insurer?
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