Property/Casualty Illinois for State Exam |
Certified Updated Exam 2026 WITH Recent
Newest Verified And Well Analyzed Exam
Questions (Actual Exam 2026-2027) Correct
Detailed & Verified ANSWERS (100% Accurate
Solutions) ALREADY GRADED A+||NEWEST
VERSION Of The Exam Guarantee Pass!!
3 elements of insurable risk - ANSWERS-1. Financial (a monetary interest)
2. Blood (a relative)
3. Business (a business partner)
indemnity - ANSWERS-to reimburse or make whole; permitted to collect only to the
extent of financial loss (cannot gain)
subrogation - ANSWERS-The process by which an insurer can, after it has paid a loss
under the policy, recover the amount paid from any party (other than the insured) who
caused the loss or is otherwise legally liable for the loss.
Accident vs. Occurrence - ANSWERS-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
BLANKET VS SPECIFIC - ANSWERS-BLANKET COVERAGE-provides coverage for
different classes of property under one policy
,SPECIFIC INSURANCE-is when you insure a specific item or specific kind of property
actual cash value - ANSWERS-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)
replacement cost - ANSWERS-The cost to replace damaged property with like kind and
quality at current price, without any deduction for depreciation
market value - ANSWERS-valuing a loss based upon the amount a willing buyer would
pay to a willing seller for the property prior to the loss; considers the land and location
rather than the cost of rebuilding the structure itself (rarely used)
agreed value - ANSWERS-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)
stated value - ANSWERS-An amount of insurance scheduled in a property policy that is
not subject to any coinsurance requirements in the event of a covered loss
3 types of liability - ANSWERS-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)
, per occurrence vs per person - ANSWERS-per occurrence puts a ceiling on the
payment for all claims that arise from a single accident/occurrence
per person put a limit on the amount of payment available for bodily injury for a single
person
aggregate limit - ANSWERS-maximum amount an insurer will pay for all covered losses
during the covered policy period
what are the designated coverages for 25/50/25? - ANSWERS-25 - injury of a single
person
50- bodily injury for 2 or more people
25 - damage to property of others
this is a split limit
Combined Single Limit - ANSWERS-The most the policy will pay for all losses of all
types resulting from any one occurrence, regardless of other limits --> 25/50/25 = 75
max
Stock Insurer - ANSWERS-An insurer that is owned by its stockholders and formed as a
corporation for the purpose of earning a profit for the stockholders
Mutual Insurer - ANSWERS-An insurer that is owned by its policyholders and formed as
a corporation for the purpose of providing insurance to them (reduced deductibles when
profits come; profits reduce premiums)
4 elements of a contract - ANSWERS-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)
Certified Updated Exam 2026 WITH Recent
Newest Verified And Well Analyzed Exam
Questions (Actual Exam 2026-2027) Correct
Detailed & Verified ANSWERS (100% Accurate
Solutions) ALREADY GRADED A+||NEWEST
VERSION Of The Exam Guarantee Pass!!
3 elements of insurable risk - ANSWERS-1. Financial (a monetary interest)
2. Blood (a relative)
3. Business (a business partner)
indemnity - ANSWERS-to reimburse or make whole; permitted to collect only to the
extent of financial loss (cannot gain)
subrogation - ANSWERS-The process by which an insurer can, after it has paid a loss
under the policy, recover the amount paid from any party (other than the insured) who
caused the loss or is otherwise legally liable for the loss.
Accident vs. Occurrence - ANSWERS-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
BLANKET VS SPECIFIC - ANSWERS-BLANKET COVERAGE-provides coverage for
different classes of property under one policy
,SPECIFIC INSURANCE-is when you insure a specific item or specific kind of property
actual cash value - ANSWERS-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)
replacement cost - ANSWERS-The cost to replace damaged property with like kind and
quality at current price, without any deduction for depreciation
market value - ANSWERS-valuing a loss based upon the amount a willing buyer would
pay to a willing seller for the property prior to the loss; considers the land and location
rather than the cost of rebuilding the structure itself (rarely used)
agreed value - ANSWERS-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)
stated value - ANSWERS-An amount of insurance scheduled in a property policy that is
not subject to any coinsurance requirements in the event of a covered loss
3 types of liability - ANSWERS-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)
, per occurrence vs per person - ANSWERS-per occurrence puts a ceiling on the
payment for all claims that arise from a single accident/occurrence
per person put a limit on the amount of payment available for bodily injury for a single
person
aggregate limit - ANSWERS-maximum amount an insurer will pay for all covered losses
during the covered policy period
what are the designated coverages for 25/50/25? - ANSWERS-25 - injury of a single
person
50- bodily injury for 2 or more people
25 - damage to property of others
this is a split limit
Combined Single Limit - ANSWERS-The most the policy will pay for all losses of all
types resulting from any one occurrence, regardless of other limits --> 25/50/25 = 75
max
Stock Insurer - ANSWERS-An insurer that is owned by its stockholders and formed as a
corporation for the purpose of earning a profit for the stockholders
Mutual Insurer - ANSWERS-An insurer that is owned by its policyholders and formed as
a corporation for the purpose of providing insurance to them (reduced deductibles when
profits come; profits reduce premiums)
4 elements of a contract - ANSWERS-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)
