Dear Jan

I was going through the quiz in preparation for my state exam and found the following error.  I did not select all because I knew that it was the Insurer who agreed to the value and not the insured.  After completing the quiz I checked the manual and it does in fact state the Insurer and not the insured.  I am not sure if it is a typo, but because it can be misleading, I thought to share it with you:

Question 17

Incorrect

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Question text

Define loss settlement valuations.

Select one:

A. All of the answers are correct

B. Most property insurance today is issued subject to replacement cost valuation particularly on buildings.

C. Most basic property insurance policies state that direct losses will be settled based on actual cash value of the property, at the time of the loss, but not more than the amount required to repair or replace the property.

D. Some property is written on a valued policy basis wherein the insured agrees, in advance, that the coverage limit will be considered the property's value.

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The correct answer is: All of the answers are correct

 

Regards,

Shirley-Ann