Minnesota Real Estate Exam Practice Question
An insured has two or more policies on the same property that do not have identical terms and conditions. Such an arrangement could result in coverage gaps or disputed payments. This arrangement would be called
Correct Answer: B
Rationale: In insurance, nonconcurrency refers to having multiple policies on the same property with differing terms and conditions, which can lead to coverage gaps or disputes over claims.
Option A, liberalization, relates to an insurer's policy changes that enhance coverage without additional premiums, not to multiple policies.
Option C, assignment, involves transferring rights under a policy to another party, which does not pertain to the issue of overlapping coverage.
Option D, subrogation, is the process by which an insurer seeks reimbursement after paying a claim, unrelated to the existence of multiple policies.
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