1.The “insurable interest” section of a homeowners policy means that an insured
ID: 443928 • Letter: 1
Question
1.The “insurable interest” section of a homeowners policy means that an insured is only covered up to the amount of his or her ownership interest in the property. T/F
2. A homeowners policy may place “special limits” on the amount of coverage for certain types of property. T.F
3. With no-fault auto insurance, a policyholder receives compensation for a claim from his or her own insurer, regardless of who caused the accident. T/F
4.Liability coverage is generally the most important part of an automobile policy.T/F
5. A tort is a private wrong that is prosecuted by the government.T/F
Explanation / Answer
1. T
People have an insurable interest in their homeownerss policy up to the value of the property, but not more than that.
2. T
It depends on the coverageplan and the type of coverage adopeted. Some coverage do place limits on type of coverages.
3. T
But in its strictest form no-fault applies only to state laws that both provide for the payment of no-fault first-party benefits and restrict the right to sue, the so-called “limited tort” option. PIP os the personal injury protection.
4. T
Liability coverage is to protect someone in case he causes an injury or damage to the third party and cover the damages.
5. F
A tort is an act which injures/damages someone in some or the other way, and for which the injured person has the rights to sue the wrongdoer for all the injuries and damages.
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