Property/Casualty Illinois for State Exam | Certified
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Explain the difference between vacancy and unoccupied
vacancy refers to a property that has no people or personal property in it
for 60 days
unoccupied refers to a property that has no people in it but there is
personal property in it
3 elements of insurable risk
1. Financial (a monetary interest)
2. Blood (a relative)
3. Business (a business partner)
indemnity
to reimburse or make whole; permitted to collect only to the extent of
financial loss (cannot gain)
,subrogation
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
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
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
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
The cost to replace damaged property with like kind and quality at current
price, without any deduction for depreciation
market value
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
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
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
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)
Questions || Most Recent Exam Actual Complete Real Exam
Questions And Correct Answers (Verified Answers) Already
Graded A+ | Guaranteed Success!! Brand New Exam
Explain the difference between vacancy and unoccupied
vacancy refers to a property that has no people or personal property in it
for 60 days
unoccupied refers to a property that has no people in it but there is
personal property in it
3 elements of insurable risk
1. Financial (a monetary interest)
2. Blood (a relative)
3. Business (a business partner)
indemnity
to reimburse or make whole; permitted to collect only to the extent of
financial loss (cannot gain)
,subrogation
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
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
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
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
The cost to replace damaged property with like kind and quality at current
price, without any deduction for depreciation
market value
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
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
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
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)
