PROPERTY AND CASUALTY INSURANCE
PROVISIONS Exam | Questions with 100% Correct
Answers | Verified | Latest Update 2026
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Terms in this set (35)
Additional insured A third party who is usually added to a commercial
policy because they also have the potential to
suffer a loss.
Aggregate limit This is the total amount a policy will pay for all
covered losses in a given policy period regardless
of the total number of claims brought by any
number of claimants. The aggregate limit resets to
the original amount on the anniversary of the
policy.
Agreed Value Is coverage available through specialty insurance
companies. Coverage is based on the value of the
property that is agreed upon by both the insured
and the company based on appraisal and any
other corroborating documentation.
Assignment Property contracts prohibit assignment, which
means the transfer of any right or duties enjoyed
by the insured to any other party without the
written permission of the insurance company.
, Cancellation This means a policy is ending early, before the end
policy date as stated in the declarations. Both the
insured and the insurance company may cancel
coverage.
Claim Settlement Options In a property policy, the company can opt to pay a
claim based on the value of the property by either
repairing it or replacing it.
Combined Single Limit Combined Single limit is a total policy limit per
occurrence, which is expressed in the declarations
as a single dollar amount that will be paid for both
bodily injury (including death) and property
damage, regardless of the number of victims, in a
single accident.
Declarations The Declarations of a policy is the face/first page
of the policy. Each policy issued by an insurance
company contains a custom declaration page
specifying the unique contractual relationship
between an insured and the insurer.
Deductible Is the first dollars paid on a claim before the insurer
will pay any loss amount. The insurance company
will only pay amounts over and above the
deductible as stated in the policy.
Endorsements Are written additions or changes to an existing
contract of insurance that is currently in force.
These written addendums can change the policy
terms, coverages or conditions in some way.
PROVISIONS Exam | Questions with 100% Correct
Answers | Verified | Latest Update 2026
Save
Terms in this set (35)
Additional insured A third party who is usually added to a commercial
policy because they also have the potential to
suffer a loss.
Aggregate limit This is the total amount a policy will pay for all
covered losses in a given policy period regardless
of the total number of claims brought by any
number of claimants. The aggregate limit resets to
the original amount on the anniversary of the
policy.
Agreed Value Is coverage available through specialty insurance
companies. Coverage is based on the value of the
property that is agreed upon by both the insured
and the company based on appraisal and any
other corroborating documentation.
Assignment Property contracts prohibit assignment, which
means the transfer of any right or duties enjoyed
by the insured to any other party without the
written permission of the insurance company.
, Cancellation This means a policy is ending early, before the end
policy date as stated in the declarations. Both the
insured and the insurance company may cancel
coverage.
Claim Settlement Options In a property policy, the company can opt to pay a
claim based on the value of the property by either
repairing it or replacing it.
Combined Single Limit Combined Single limit is a total policy limit per
occurrence, which is expressed in the declarations
as a single dollar amount that will be paid for both
bodily injury (including death) and property
damage, regardless of the number of victims, in a
single accident.
Declarations The Declarations of a policy is the face/first page
of the policy. Each policy issued by an insurance
company contains a custom declaration page
specifying the unique contractual relationship
between an insured and the insurer.
Deductible Is the first dollars paid on a claim before the insurer
will pay any loss amount. The insurance company
will only pay amounts over and above the
deductible as stated in the policy.
Endorsements Are written additions or changes to an existing
contract of insurance that is currently in force.
These written addendums can change the policy
terms, coverages or conditions in some way.
