PA property and casualty insurance exam
questions with correct answers
Property |- |ANSWER-you |can |possess/ |physically |touch
BI |- |ANSWER-bodily |injury
PD |- |ANSWER-Property |damage
Liability/casualty |- |ANSWER-what |you |pay |the |other |guy
personal |lines |insurance |- |ANSWER-cover |needs |of |individual |or |family |(auto,boat,camper,rv)
commercial |lines |insurance |- |ANSWER-needs |of |a |business
direct |loss |- |ANSWER-example |- |house |burns |down
indirect |loss |- |ANSWER-example |- |additional |money |you |will |have |to |spend |to |live |somewhere |else
|while |house |is |being |rebuilt. |Out |of |pocket |expenses.
indemnify |- |ANSWER-to |make |whole |again |- |no |better |no |worse
predetermined |loss |limit |- |ANSWER-based |upon |the |rule |of |the |4Ls |- |you |get |the |lower |of |the |loss |or
|the |limit |up |to |the |level |of |your |insurable |loss.
inherent |vice |- |ANSWER-loss |results |from |an |inherent |property |not |fortuitous, |not |covered
CPC |- |ANSWER-catastrophic, |predictable, |covered |elsewhere
, endorsement |- |ANSWER-written |modification |to |your |policy |designed |to |accommodate |your |specific
|needs |- |sometimes |called |a |rider
mutual |company |- |ANSWER-earning |called |surplus, |not |taxable, |dividend
reinsurance |treaty |- |ANSWER-% |risk |transferred |and |fees |involved |for |entire |class
surplus |lines |producer |- |ANSWER-agent |authorized |to |sell |contracts |from |nonadmitted |company |if
|desired |policy |is |unavailable |from |admitted |company
consideration |- |ANSWER-acceptance |and |offer
aleatory |- |ANSWER-not |necessarily |equal |due |to |uncertain |timing |of |event |which |is |the |subject |of
|contract
unilateral |- |ANSWER-one |promiser
negative |data |that |they |can |use |against |you |- |ANSWER-up |to |seven |years
Up |to |how |many |years |can |they |use |bankruptcy |against |you? |- |ANSWER-10 |years
Largest |of |these |ratings |bureaus |- |ANSWER-Insurance |services |office
premium |calculation |- |ANSWER-multiply |the |units |of |exposure. |example |- |rate |is |2.25$ |per |sq |ft,
|annual |premium |is |10,000 |sq |ft |= |2.25 |x |10,000 |= |22,500 |sq |ft
merit |rates |- |ANSWER-customized |class |rates |based |upon |physical |characteristics |or |modifications |to
|exposure |or |loss |experience
schedule |rating |- |ANSWER-lower |rating |for |a |building |just |updated
questions with correct answers
Property |- |ANSWER-you |can |possess/ |physically |touch
BI |- |ANSWER-bodily |injury
PD |- |ANSWER-Property |damage
Liability/casualty |- |ANSWER-what |you |pay |the |other |guy
personal |lines |insurance |- |ANSWER-cover |needs |of |individual |or |family |(auto,boat,camper,rv)
commercial |lines |insurance |- |ANSWER-needs |of |a |business
direct |loss |- |ANSWER-example |- |house |burns |down
indirect |loss |- |ANSWER-example |- |additional |money |you |will |have |to |spend |to |live |somewhere |else
|while |house |is |being |rebuilt. |Out |of |pocket |expenses.
indemnify |- |ANSWER-to |make |whole |again |- |no |better |no |worse
predetermined |loss |limit |- |ANSWER-based |upon |the |rule |of |the |4Ls |- |you |get |the |lower |of |the |loss |or
|the |limit |up |to |the |level |of |your |insurable |loss.
inherent |vice |- |ANSWER-loss |results |from |an |inherent |property |not |fortuitous, |not |covered
CPC |- |ANSWER-catastrophic, |predictable, |covered |elsewhere
, endorsement |- |ANSWER-written |modification |to |your |policy |designed |to |accommodate |your |specific
|needs |- |sometimes |called |a |rider
mutual |company |- |ANSWER-earning |called |surplus, |not |taxable, |dividend
reinsurance |treaty |- |ANSWER-% |risk |transferred |and |fees |involved |for |entire |class
surplus |lines |producer |- |ANSWER-agent |authorized |to |sell |contracts |from |nonadmitted |company |if
|desired |policy |is |unavailable |from |admitted |company
consideration |- |ANSWER-acceptance |and |offer
aleatory |- |ANSWER-not |necessarily |equal |due |to |uncertain |timing |of |event |which |is |the |subject |of
|contract
unilateral |- |ANSWER-one |promiser
negative |data |that |they |can |use |against |you |- |ANSWER-up |to |seven |years
Up |to |how |many |years |can |they |use |bankruptcy |against |you? |- |ANSWER-10 |years
Largest |of |these |ratings |bureaus |- |ANSWER-Insurance |services |office
premium |calculation |- |ANSWER-multiply |the |units |of |exposure. |example |- |rate |is |2.25$ |per |sq |ft,
|annual |premium |is |10,000 |sq |ft |= |2.25 |x |10,000 |= |22,500 |sq |ft
merit |rates |- |ANSWER-customized |class |rates |based |upon |physical |characteristics |or |modifications |to
|exposure |or |loss |experience
schedule |rating |- |ANSWER-lower |rating |for |a |building |just |updated
