Property/Casualty Illinois for State
Quiz_________________?
2 compensatory damages -
Answer✅
special: specific out of pocket expenses for medical, miscellaneous, and loss of wages
general: compensate the injured for pain/suffering, mental anguish, disfigurement (highly
subjective to what the judge/jury feels is right)
3rd class is punitive which is extreme outrageous behavior (punish defendant)
Quiz_________________?
3 elements of insurable risk -
Answer✅
1. Financial (a monetary interest)
2. Blood (a relative)
3. Business (a business partner)
Quiz_________________?
3 types of liability -
1
, Answer✅
1. Absolute - if you aren't protecting others from it (absolutely something will go wrong;
swiming pool)
2. Strict - deals with product liability; manufacturers/sellers of a product makes an implied
warranty that a product is safe; business is liable for defective products
3. Vicarious- responsible for others' actions; transfer liability to someone with a greater
ability to pay (dog unleashed; children throw party)
Quiz_________________?
4 elements of a contract -
Answer✅
1. Agreement (offer and acceptance; offer when application is submitted, acceptance when
underwriter approves application and issues policy)
2. Consideration (something of value each party gives; insured = payment of premiums and
representations/insurer = promise to pay in a loss)
3. Competent parties (legal age, not inebriated, mentally competent)
4. Legality (lawful reason, not against public policy)
Quiz_________________?
7 coverage parts of CPP -
Answer✅
1. General liability (covers you from being sued by others)
2. Commercial property (direct and indirect coverages)
3. Inland Marine ("coast to coast; land, air, entry waterways")
4. Commercial Auto
5. Equipment Breakdown
2
, 6. Crime (not employee theft)
Quiz_________________?
Accident vs. Occurrence -
Answer✅
an accident is a sudden, unplanned and unexpected event not under the control of the
insured and results in injury/damage that is not intended/expected
an occurrence includes losses caused by continuous or repeated exposure to conditions
resulting in injury to persons or damage to property that is neither intended nor expected
Quiz_________________?
actual cash value -
Answer✅
recognizes the reduction of value of property as it ages and becomes subject to wear and
tear and obsolescence
calculated by: (current replacement cost) - (depreciation)
Quiz_________________?
additional coverages for BPP -
Answer✅
debris removal, preservation of property, fire department service charge, pollutant cleanup,
increased cost of construction, electronic data
Quiz_________________?
3
, additional insured -
Answer✅
Individuals or business that are not named as insured on the declaration page, but are
protected by the policy, usually in regard to a specific interest
Quiz_________________?
after 5 years, personal auto/property policy are.... -
Answer✅
NO LONGER GROUNDS FOR CANCELLATION
Quiz_________________?
aggregate limit -
Answer✅
maximum amount an insurer will pay for all covered losses during the covered policy period
Quiz_________________?
agreed value -
Answer✅
provision agreed upon by the insurer and insured as to the amount of insurance that
represents a fair valuation for the property at the time the insurance is written and
suspends coinsurance (items whose value does not fluctuate much)
Quiz_________________?
Are maids/butlers covered under HO? -
Answer✅
4
Quiz_________________?
2 compensatory damages -
Answer✅
special: specific out of pocket expenses for medical, miscellaneous, and loss of wages
general: compensate the injured for pain/suffering, mental anguish, disfigurement (highly
subjective to what the judge/jury feels is right)
3rd class is punitive which is extreme outrageous behavior (punish defendant)
Quiz_________________?
3 elements of insurable risk -
Answer✅
1. Financial (a monetary interest)
2. Blood (a relative)
3. Business (a business partner)
Quiz_________________?
3 types of liability -
1
, Answer✅
1. Absolute - if you aren't protecting others from it (absolutely something will go wrong;
swiming pool)
2. Strict - deals with product liability; manufacturers/sellers of a product makes an implied
warranty that a product is safe; business is liable for defective products
3. Vicarious- responsible for others' actions; transfer liability to someone with a greater
ability to pay (dog unleashed; children throw party)
Quiz_________________?
4 elements of a contract -
Answer✅
1. Agreement (offer and acceptance; offer when application is submitted, acceptance when
underwriter approves application and issues policy)
2. Consideration (something of value each party gives; insured = payment of premiums and
representations/insurer = promise to pay in a loss)
3. Competent parties (legal age, not inebriated, mentally competent)
4. Legality (lawful reason, not against public policy)
Quiz_________________?
7 coverage parts of CPP -
Answer✅
1. General liability (covers you from being sued by others)
2. Commercial property (direct and indirect coverages)
3. Inland Marine ("coast to coast; land, air, entry waterways")
4. Commercial Auto
5. Equipment Breakdown
2
, 6. Crime (not employee theft)
Quiz_________________?
Accident vs. Occurrence -
Answer✅
an accident is a sudden, unplanned and unexpected event not under the control of the
insured and results in injury/damage that is not intended/expected
an occurrence includes losses caused by continuous or repeated exposure to conditions
resulting in injury to persons or damage to property that is neither intended nor expected
Quiz_________________?
actual cash value -
Answer✅
recognizes the reduction of value of property as it ages and becomes subject to wear and
tear and obsolescence
calculated by: (current replacement cost) - (depreciation)
Quiz_________________?
additional coverages for BPP -
Answer✅
debris removal, preservation of property, fire department service charge, pollutant cleanup,
increased cost of construction, electronic data
Quiz_________________?
3
, additional insured -
Answer✅
Individuals or business that are not named as insured on the declaration page, but are
protected by the policy, usually in regard to a specific interest
Quiz_________________?
after 5 years, personal auto/property policy are.... -
Answer✅
NO LONGER GROUNDS FOR CANCELLATION
Quiz_________________?
aggregate limit -
Answer✅
maximum amount an insurer will pay for all covered losses during the covered policy period
Quiz_________________?
agreed value -
Answer✅
provision agreed upon by the insurer and insured as to the amount of insurance that
represents a fair valuation for the property at the time the insurance is written and
suspends coinsurance (items whose value does not fluctuate much)
Quiz_________________?
Are maids/butlers covered under HO? -
Answer✅
4
