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Property: Policy Provisions and Contract Law

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Declarations

a)

Part of the insurance policy that provides basic information about the policyholder and the insurance coverage.

b)

A section of the policy that outlines the exclusions and limitations of coverage.

c)

The part of the policy that details the claims process and requirements.

d)

A summary of the policy's premium payment schedule.

2.

Notice of claim

a)

Requirement for the insured to inform the insurer about a loss or event that may lead to a claim.

b)

A document that outlines the terms of the insurance policy.

c)

A request for payment from the insurer to the insured.

d)

A notification of policy cancellation by the insurer.

3.

Obligations of the insurance company

a)

Duties that the insurer must perform as part of the insurance contract.

b)

Rights of the policyholder under the insurance agreement.

c)

Conditions for terminating an insurance policy.

d)

Types of insurance coverage available.

4.

Exclusions

a)

Specific conditions or circumstances for which the policy does not provide coverage.

b)

General benefits provided by the policy.

c)

Additional services included in the policy.

d)

Conditions that enhance the coverage of the policy.

5.

Other Insurance Provision

a)

Clause that explains how coverage will be handled if there is other insurance in place.

b)

A provision that limits the amount of coverage available under a policy.

c)

A clause that allows for additional coverage to be purchased.

d)

A statement that voids the policy if other insurance exists.

6.

Definition of the insured

a)

Explanation of who is covered under the insurance policy.

b)

Details about the insurance premium payment process.

c)

Information regarding the claims process for insurance.

d)

Guidelines for selecting an insurance provider.

7.

Insuring agreement

a)

The section of an insurance policy that outlines the coverage provided and the risks insured against.

b)

A clause that specifies the premium amount to be paid by the insured.

c)

A provision that allows the insurer to cancel the policy at any time.

d)

A statement detailing the exclusions and limitations of the policy.

8.

Mortgagee rights

a)

Rights of the mortgage lender in relation to the insurance policy on the mortgaged property.

b)

Rights of the borrower to modify the loan terms without lender consent.

c)

Rights of the mortgage lender to seize the property without notice.

d)

Rights of the borrower to receive insurance payouts directly from the insurer.

9.

Duties of the insured

a)

Responsibilities that the policyholder must fulfill for the insurance coverage to remain in effect.

b)

Optional actions that the policyholder can take to enhance their coverage.

c)

Guidelines for filing a claim after an incident occurs.

d)

Recommendations for choosing the right insurance policy.

10.

Warranties, representations, and concealment

a)

Statements and disclosures made by the insured that can affect the validity of the insurance contract.

b)

A type of insurance policy that covers natural disasters.

c)

A legal term for the process of filing an insurance claim.

d)

The amount of money an insured must pay out of pocket before insurance coverage kicks in.

11.

Appraisal

a)

A process to determine the value of property or the amount of a loss.

b)

A method for assessing employee performance.

c)

A technique for evaluating market trends.

d)

A strategy for negotiating real estate deals.

12.

Terrorism Risk Insurance Act (TRIA)

a)

Federal law that provides a backstop for insurance claims related to acts of terrorism.

b)

State law regulating local law enforcement agencies.

c)

International treaty on counter-terrorism measures.

d)

Private insurance policy for natural disasters.

13.

Privacy Protection (Gramm Leach Bliley)

a)

A law that allows financial institutions to share customer data without consent.

b)

A law that requires financial institutions to explain their information-sharing practices to their customers and to safeguard sensitive data.

c)

A law that mandates financial institutions to provide loans to all customers regardless of credit history.

d)

A law that prohibits financial institutions from collecting any personal information from customers.

14.

Sources of underwriting information

a)

Data used by insurers to evaluate the risk of insuring a particular individual or entity.

b)

Historical claims data from similar policies.

c)

Personal credit scores of the insured individuals.

d)

Market trends in the insurance industry.

15.

Territory

a)

Geographical area where the insurance policy is effective.

b)

A type of insurance coverage for natural disasters.

c)

The total amount of insurance a policyholder can claim.

d)

A legal term for the jurisdiction of a court.

16.

Subrogation

a)

The right of the insurer to pursue a third party that caused an insurance loss to the insured.

b)

The process of an insurer paying the insured directly for their loss.

c)

The obligation of the insured to report any losses to the insurer.

d)

The right of the insured to sue the insurer for denied claims.

17.

Policy Application

a)

Form or document used to apply for insurance coverage.

b)

A type of insurance policy that covers multiple risks.

c)

A legal agreement between the insurer and the insured.

d)

A summary of the insurance terms and conditions.

18.

Fair Credit Reporting Act

a)

Federal law that regulates the collection and use of consumer credit information.

b)

A state law that governs the sale of consumer goods.

c)

An international treaty on financial transactions.

d)

A guideline for ethical marketing practices.

19.

Conditions

a)

Provisions in the policy that qualify or place limitations on the insurer's promise to pay or perform.

b)

Requirements that must be met for a claim to be valid.

c)

Statements that outline the benefits provided by the insurer.

d)

Clauses that allow the insurer to cancel the policy at any time.

20.

Elements of a contract

a)

Offer, acceptance, consideration, and mutual consent.

b)

Offer, negotiation, agreement, and execution.

c)

Proposal, acceptance, terms, and conditions.

d)

Offer, acceptance, performance, and termination.