The 2005 PAP states that the insurer has no duty to provide ...

[lak]

The 2005 PAP states that the insurer has no duty to provide coverage if the insured fails to comply with certain listed duties. In practice, however, the insurer is only relieved of its duty to provide coverage if
 
  A) the insured was unaware of the listed duties.
  B) failure to comply with the duties is prejudicial to the insurer.
  C) the claim involves bodily injuries of more than 50,000.
  D) the claim occurred in another state.

Question 2

A car damaged in an auto accident may have reduced market or resale value after it is repaired. Some insureds have sought to recover this reduction in market or resale value. This loss in value is called
 
  A) gap coverage.
  B) betterment.
  C) diminution.
  D) subrogation.

[Ksanderson1296]

Answer to Question 1

Answer: B

Answer to Question 2

Answer: C