What principle states that the insured receives benefits from coverage broadening without additional premium by the insurer’s revision?

Study for the Insurance Customer Service Rep 440 Test. Enhance your skills with flashcards and multiple choice questions, complete with hints and explanations. Prepare for exam success!

The principle that states the insured receives benefits from coverage broadening without an additional premium due to the insurer's revisions is known as liberalization. This principle is designed to benefit policyholders when an insurer makes enhancements to its policies. Essentially, if an insurance company expands or improves coverage, the insured automatically receives these enhanced benefits without having to pay more for their policy. This reflects the company's commitment to providing better protection and adapting to changes in the market or legal requirements, thereby ensuring that policyholders benefit from advancements in coverage.

Choices that involve concepts like Actual Cash Value, Severability, or Abandonment focus on specific valuation methods or policy provisions, but they do not pertain to the broader concept of automatically extending coverage without additional costs to the insured, which is the essence of liberalization.

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