Download Property and Casualty Insurance EXAM Question & Answers 2025 and more Exams Nursing in PDF only on Docsity!
Question & Answers 2025
Specific insurance - CORRECT ANSWER ✔✔This type of insurance designates a particular item to be insured Blanket insurance - CORRECT ANSWER ✔✔This type of insurance covers more than one item of property at a single location or one more items of property at multiple locations. Speculative - CORRECT ANSWER ✔✔possibility of both gain and loss. Not insurable. Pure - CORRECT ANSWER ✔✔only the possibility of loss. Insurable. What are the 5 methods of managing or handling risk? - CORRECT ANSWER ✔✔avoid, control, retain, and transfer risk. Hazard - CORRECT ANSWER ✔✔A condition or situation which increases the chance for loss
Question & Answers 2025
Physical Hazards - CORRECT ANSWER ✔✔a hazard that arises from the condition, occupancy, or use of the property itself. ex: skateboard left on the steps Moral Hazards - CORRECT ANSWER ✔✔when an individual through carelessness or by irresponsible actions can increase the possibly for a loss. ex: person who drives carelessly just because they know they are insured. Morale Hazards - CORRECT ANSWER ✔✔when a person might create a loss situation on purpose just to collect from the insurance company. ex: Prearranged, faked theft of someone's old vehicle so they can get an insurance payout to buy a new vehicle.
Question & Answers 2025
Subrogation - CORRECT ANSWER ✔✔An insurer's right to recover the amount of its loss payment from the third party who is legally responsible for the loss. Arbitration - CORRECT ANSWER ✔✔this condition is similar to the Appraisal Condition but it is not limited to disputes over the value of the loss. It may also be used to resolve other areas of disagreement between the insured and the insurance company. What does WC SHAVVER stand for? - CORRECT ANSWER ✔✔Windstorm, Civil commotion, Smoke, Hail, Aircraft, Vehicles, Volcanic eruption, Explosion, Riot What does BIG AFFECT stand for? - CORRECT ANSWER ✔✔Burglar damage, Ice & snow weight, Glass breakage, Accidental discharge, Falling objects, Freezing of pipes, Electrical damage, Collapse, Tearing apart.
Question & Answers 2025
Insolvency - CORRECT ANSWER ✔✔A financial state that occurs if liabilities are greater than assets. Law of Agency - CORRECT ANSWER ✔✔Knowledge of the Agents is Knowledge of the Principal (Insurance Company) Principal - CORRECT ANSWER ✔✔Insurance Company What is the ISO? - CORRECT ANSWER ✔✔Insurance Services Office which is an organization established for the benefit of its member insurance companies. This organization gathers statistics, provides loss costs, drafts policy forms and coverage provisions and conducts inspections for rate making purposes. Coinsurance Clause - CORRECT ANSWER ✔✔Requires the insured to carry a minimum specified amount (generally 80%) of the replacement cost value of the insured property in order for partial losses to be paid in full.
Question & Answers 2025
agreements to be adjusted when the actual earned charge has been later determined. Audit - CORRECT ANSWER ✔✔Verification of books or accounts to determine their accuracy. Occurrence - CORRECT ANSWER ✔✔An accident, including continuous or repeated exposure to the same harmful conditions, which result in bodily injury or property damage. Special Damages - CORRECT ANSWER ✔✔type of compensatory damages that reimburse the injured part for direct and specific expenses involved in the loss. Such as medical expenses, funeral expenses and loss wages. General Damages - CORRECT ANSWER ✔✔type of compensatory damages that reimburse the injured party for such things as pain and suffering and disfigurement.
Question & Answers 2025
Punitive Damages - CORRECT ANSWER ✔✔type of damages intended to punish the defendant and make an example out of her to discourage others from behaving the same way. Proximate Cause - CORRECT ANSWER ✔✔An act, through an uniterrupted chain of events, that can be determined to be the immediate or actual cause of a loss. 4 elements of negligence - CORRECT ANSWER ✔✔1. The existence of a DUTY to act in a certain way
- A FAILURE to live up to this duty
- An actual INJURY must occur
- The failure in duty must be the PROXIMATE CAUSE of the injury. Negligence - CORRECT ANSWER ✔✔An unreasonable or prudent act, A thoughtless or careless act or one committed out of ignorance. It may be a non-act or omission, but it is NEVER an intentional act.
Question & Answers 2025
- No liability coverage at the time of accident -has liability coverage but not enough to meet the state's financial responsibility requirement
- Operated by a hit and run driver
- Has invalid liability insurance at the time of the accident because the insurer is insolvent or denies coverage Part C: Uninsured Motorist Coverage - CORRECT ANSWER ✔✔this coverage compensates the insured for bodily injury ONLY as a result of an accident with an uninsured motorist. Medical Payments - CORRECT ANSWER ✔✔Insurance company agrees to pay for reasonable expenses incurred for necessary medical and funeral services because of bodily injury.
- Covers first party.
- "Stays in the car"
- 3 years is time limit for incurring medical expenses
Question & Answers 2025
Supplementary Payments - CORRECT ANSWER ✔✔Payments made in addition to the Limits of Liability.
- Up to $200/day for loss of earnings
- Up to $250 for the cost of bail bonds required because of an accident. Excess - CORRECT ANSWER ✔✔Any insurance that is provided for a vehicle you do not own, shall be excess over any other collectible insurance. Example: If you borrowed your friend's car, your own liability coverage will act as excess to your friend's primary coverage. Single Limit Basis - CORRECT ANSWER ✔✔One amount representing the total (aggregate) limit for all claims arising from any one accident. (1 amount for Bodily Injury and Property Damage)
Question & Answers 2025
Underinsured Motorist Coverage (UIM) - CORRECT ANSWER ✔✔Covers the insured when involved in an accident with a driver who has auto liability insurance, but the limit of this insurance is insufficient to pay for the insured's damage. Collision - CORRECT ANSWER ✔✔The upset of a covered auto or its impact with another motor vehicle. Comprehensive - CORRECT ANSWER ✔✔Addresses property damage losses to the insured vehicle involving losses other than collisions. Examples:
- Contact with birds or animals
- Theft or larceny
- Fire
- Hair, water, or flood
- Vandalism or malicious mischief (VMM)
Question & Answers 2025
- Breakage of glass Nonowned Auto - CORRECT ANSWER ✔✔Any private passenger vehicle not owned by the insured being operated by the insured. Examples:
- Rental Car
- Temporary Substitute APIP - CORRECT ANSWER ✔✔Additional Personal Injury Protection (optional) OBEL - CORRECT ANSWER ✔✔Optional Basic Economic Loss Additional $25,000 to be assigned to any combination of Medical Expenses, Loss Wages, Rehab.
Question & Answers 2025
ex: an employer can be liable for the acts or omissions of its employees, provided it can be shown that they took place in the course of their employment. Write Your Own (WYO) - CORRECT ANSWER ✔✔Program instituted by the Federal Government which enables private insurers (Allstate, State Farm, etc) to write, service, bill and settle claims directly with insureds while being backed financially by the federal government. Tort - CORRECT ANSWER ✔✔Fault A civil wrong that violates the rights of another person. Can be intentional or unintentional Fair Credit Reporting Act - CORRECT ANSWER ✔✔Mandates confidential, fair and accurate reporting of information on consumers by reporting organizations as well as organizations (such as insurers) which use the services of reporting organizations.
Question & Answers 2025
Consumers must be informed if a credit report is needed in order to underwrite a particular line of insurance. Express Authority - CORRECT ANSWER ✔✔Authority specifically given to an agent, either orally or in writing, by the principal -Written authority is typically provided under the agency agreement which allows the agent to countersign, issue and deliver policies. Implied Authority - CORRECT ANSWER ✔✔authority given by the insurance company to the agent that is not formally expressed or communicated. -This allows the agent to perform all of the usual and necessary tasks to sell and service insurance contracts and to full exercise the agents express authority.
Question & Answers 2025
Consultant - CORRECT ANSWER ✔✔Someone who, for a fee, offers advice on the benefits, advantages, and disadvantages of various insurance policies. -They don't actually sell insurance, only advice. Solicitor - CORRECT ANSWER ✔✔like an agent, sells insurance and may even be authorized to collect premiums. However, they cannot issue or countersign policies, only agents can do this. -they represent the insurance company Excess or Surplus Lines - CORRECT ANSWER ✔✔an agent licensed by the state to handle highly specialized insurance coverages such as auto racing liability and tuition refund insurance.
Question & Answers 2025
Non-Admitted Companies - CORRECT ANSWER ✔✔are companies that are not authorized to conduct business in the state under ordinary circumstances. Reinsurance - CORRECT ANSWER ✔✔A contract under which one insurance company (the reinsurer) indemnifies (insures) another insurance company for part, or all its liabilities. Contract of Adhesion - CORRECT ANSWER ✔✔One party has greater power over the party in drafting the contract. The insurer has more power when it comes to preparing the contract even though the insured can request provisions or coverage. Aleatory Contract - CORRECT ANSWER ✔✔it is a contract that is contingent on an uncertain event (a loss) that provides for unequal transfer of value between the parties. For example, people can pay insurance premiums for years without having a loss or on the other hand someone could
