Whaley Crop purchased property coverage with a minimum premium of 100% from Zurich during a hard market. 4 months later, market pricing "softened"and Whaley suggested to their broker to current coverage, get a pro-rated refund the obtain coverage at a lower cost. what is the main problem with this?

minimum premium of 100% means the premium is considered fully earned at inception of the policy. Whaley will not get a return premium

the market could turn hard again later in another policy year

the insurer may delay returning the pro-rated premium

the state insurance department may frown on this practice

Question 2 3.4 out of 3.4 points Whaley Corp purchased property coverage with a minimum premium of 100% from Zurich during a hard market. 4 months later, market pricing "softened" and Whaley suggested to their broker to cancel current coverage, get a pro-rated refund then obtain coverage at a lower cost. What is the main problem with this? Answers: Minimum premium of 100% means the premium is considered fully earned at inception of the policy. Whaley will get a return premium The market could turn hard again later in another policy year The insurer may delay returning the pro-rated premium The state insurance department may frown on this practice Question 3 3.4 out of 3.4 points Where would it make most sense for a global company to utilize a Difference in conditions (DIC) property program? Answers: When they have no property in catastrophe prone areas Where the property coverage they may be required to purchase in the local country marketplace does not provide sufficient limits or broad enough coverage When they desire to use only locally admitted markets for coverage When they want the most inexpensive coverage they can purchase Question 4 3.4 out of 3.4 points Granite Properties LLC has a commercial property policy with Ordinance or Law coverage added back as an underlying cause of loss. They have a $1,000,000 sublimit for parts A, B, C. The property of 123 Wading Drive has a fire at part of the building. Granite needs to spend an additional $300,000 on repairs to bring to code compliance. Granite is confident the $300,000 will be covered. What could possibly prevent the Ordinance or Law coverage applying in part or in full? Answers: Code upgrade will not apply to policies providing replacement cost Repairs or the rebuild must occur within two years of the loss unless the Insurer agrees to extend the time. Cost of complying with codes that were enacted AFTER the loss would not be covered Both B and Care correct