Exam Fx-Property and Casualty Questions
and Answers | 100% Correct Answers |
Graded A+
Question: Warranty . Answer: A material stipulation in the policy that if
breached may void coverage.
Question: Waiver . Answer: The voluntary abandonment of a known or
legal right or advantage.
Question: Waiting Period . Answer: Time between the beginning of a
disability and the start of disability insurance benefits.
Question: Vicarious Liability . Answer: A type of liability in which one
person is responsible for the acts of another. For example, employers
may be vicariously liable for the actions of their employees, and parents
may be held responsible for negligent acts of their children.
Question: Valued Policy . Answer: A policy used when it is difficult to
establish the actual cash value of insured property after a loss occurs
because of its rarity or uniqueness. A valued policy provides for
payment of the full policy amount in the event of a total loss without
regard to actual value or depreciation.
Question: Vacant . Answer: A property that has no contents, furnishings,
or occupants.
Question: Upmost Good Faith . Answer: The fair and equal bargaining
by both parties in forming the contract, where the applicant must make
full disclosure of risk to the company, and the insurance company must
be fair in underwriting the risk.
,Question: Unoccupied . Answer: A property that has contents or
furnishings in it, but is not being used or lived in.
Question: Unintentional Tort . Answer: The result of acting without
proper care, generally referred to as negligence.
Question: Uninsured Motorist Coverage . Answer: Coverage that allows
the named insured, resident relative(s) and passengers in a covered auto
to collect sums another driver would be legally liable to pay for bodily
injury resulting from an auto accident, providing the accident was
caused by an uninsured motorist, a hit-and-run driver or a driver whose
insurance company is insolvent.
Question: Underinsured Motorist Coverage . Answer: Coverage in an
automobile insurance policy under which the insurer will pay costs up to
specified limits for bodily injury, if the liable driver's policy limits are
exhausted and he/she cannot pay the full amount for which he or she is
liable.
Question: Unilateral Contract . Answer: A contract that legally binds
only one party to contractual obligations after the premium is paid.
Question: Underwriting . Answer: The process of reviewing, accepting
or rejecting applications for insurance.
Question: Underwriter . Answer: A person who evaluates and classifies
risks to accept or reject them on behalf of the insurer.
Question: Unauthorized Insurer . Answer: An insurance company that
has not applied, or has applied and been denied a Certificate of
Authority.
Question: Umbrella Liability Coverage . Answer: Coverage that
provides extra protection against liability, and excess amount of
insurance above the primary policy.
, Question: Twisting . Answer: A form of misrepresentation in which an
agent persuades an insured/owner to cancel, lapse, or switch policies,
even when it's to the insured's disadvantage.
Question: Transfer . Answer: A basic principle of insurance under which
the risk of financial loss is assigned to another party.
Question: Tort . Answer: A wrongful act or the violation of someone's
rights that leads to legal liability. Torts are classified as intentional or
unilateral (referred to as negligence).
Question: Third-Party Provisions . Answer: Insurance provisions that
address the rights of someone other than the policyowner to have a
secured financial interest in the insured property.
Question: Theft . Answer: Any act of stealing or removing property
from its rightful owner. Theft encompasses both burglary and robbery.
Question: Surplus Lines . Answer: Insurance for which there is no
readily available, admitted market.
Question: Surety Bond . Answer: A guarantee that debts and obligations
will be carried out, and the benefits will be paid for losses caused by
nonperformance.
Question: Superintendent (Commissioner, Director) . Answer: The head
of the state department of insurance.
Question: Subrogation . Answer: The acquisition by an insurer of an
insured's rights against any third party for indemnification of loss or
other payment, to the extent that the insurer pays the loss.
and Answers | 100% Correct Answers |
Graded A+
Question: Warranty . Answer: A material stipulation in the policy that if
breached may void coverage.
Question: Waiver . Answer: The voluntary abandonment of a known or
legal right or advantage.
Question: Waiting Period . Answer: Time between the beginning of a
disability and the start of disability insurance benefits.
Question: Vicarious Liability . Answer: A type of liability in which one
person is responsible for the acts of another. For example, employers
may be vicariously liable for the actions of their employees, and parents
may be held responsible for negligent acts of their children.
Question: Valued Policy . Answer: A policy used when it is difficult to
establish the actual cash value of insured property after a loss occurs
because of its rarity or uniqueness. A valued policy provides for
payment of the full policy amount in the event of a total loss without
regard to actual value or depreciation.
Question: Vacant . Answer: A property that has no contents, furnishings,
or occupants.
Question: Upmost Good Faith . Answer: The fair and equal bargaining
by both parties in forming the contract, where the applicant must make
full disclosure of risk to the company, and the insurance company must
be fair in underwriting the risk.
,Question: Unoccupied . Answer: A property that has contents or
furnishings in it, but is not being used or lived in.
Question: Unintentional Tort . Answer: The result of acting without
proper care, generally referred to as negligence.
Question: Uninsured Motorist Coverage . Answer: Coverage that allows
the named insured, resident relative(s) and passengers in a covered auto
to collect sums another driver would be legally liable to pay for bodily
injury resulting from an auto accident, providing the accident was
caused by an uninsured motorist, a hit-and-run driver or a driver whose
insurance company is insolvent.
Question: Underinsured Motorist Coverage . Answer: Coverage in an
automobile insurance policy under which the insurer will pay costs up to
specified limits for bodily injury, if the liable driver's policy limits are
exhausted and he/she cannot pay the full amount for which he or she is
liable.
Question: Unilateral Contract . Answer: A contract that legally binds
only one party to contractual obligations after the premium is paid.
Question: Underwriting . Answer: The process of reviewing, accepting
or rejecting applications for insurance.
Question: Underwriter . Answer: A person who evaluates and classifies
risks to accept or reject them on behalf of the insurer.
Question: Unauthorized Insurer . Answer: An insurance company that
has not applied, or has applied and been denied a Certificate of
Authority.
Question: Umbrella Liability Coverage . Answer: Coverage that
provides extra protection against liability, and excess amount of
insurance above the primary policy.
, Question: Twisting . Answer: A form of misrepresentation in which an
agent persuades an insured/owner to cancel, lapse, or switch policies,
even when it's to the insured's disadvantage.
Question: Transfer . Answer: A basic principle of insurance under which
the risk of financial loss is assigned to another party.
Question: Tort . Answer: A wrongful act or the violation of someone's
rights that leads to legal liability. Torts are classified as intentional or
unilateral (referred to as negligence).
Question: Third-Party Provisions . Answer: Insurance provisions that
address the rights of someone other than the policyowner to have a
secured financial interest in the insured property.
Question: Theft . Answer: Any act of stealing or removing property
from its rightful owner. Theft encompasses both burglary and robbery.
Question: Surplus Lines . Answer: Insurance for which there is no
readily available, admitted market.
Question: Surety Bond . Answer: A guarantee that debts and obligations
will be carried out, and the benefits will be paid for losses caused by
nonperformance.
Question: Superintendent (Commissioner, Director) . Answer: The head
of the state department of insurance.
Question: Subrogation . Answer: The acquisition by an insurer of an
insured's rights against any third party for indemnification of loss or
other payment, to the extent that the insurer pays the loss.
