Basics of Property and Casualty Insurance Exam |
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Latest Update 2026
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Terms in this set (31)
Property Insurance Policies Protect the insured from loss caused by damage
from a covered peril to the insured property.
-property insurance pays the insured for covered
losses to the property. These are referred to as
FIRST PARTY LOSSES.
-insured property can be buildings (called real
property) such as a house or personal property
(stuff) such as a television.
-personal "my stuff" = personal belongings
Casualty Policies (Liability Insurance) Often called liability insurance, protect and
individual or business when it is found legally liable
for negligent acts or omissions that cause injury or
property damage to others.
-casualty insurance never pays the insured; it pays
the "other guy."
-these are referred to as THIRD PARTY LOSSES
-for example, if a person is injured at your house
due to your negligence, your casualty policy would
not pay for your injury.
-Casualty = Liability and always pays the other guy,
never me.
-THIRD PARTY LOSSES; 1st party- me (insured), 2nd
party- my insurer, 3rd party- the other guy.
, Policy Structure DICEE Even though property and casualty covers different
types of risks, they have a similarity in their
structure. Policies contain several parts, and, in
order to remember these parts, use the acronym
DICEE
D.I.C.E.E.
-Declarations- who, what, when, where and how
much
-Insuring Agreements- promise to pay the perils
covered
-Conditions- rules for the policy
-Endorsements and Additional Supplementary
Coverages- changes the original policy
-Exclusions- items not covered
Declarations Information relative to who, what, when and where
is found on the first page of the policy- the
DECLARATION section.
-the name of the insured, a current address, a legal
description of the insured property, the policy
deductibles and the term of the coverage are
contained in this section.
-this information is used to help determine the
premium cost of the policy.
Insuring Agreement Describes the coverage perils or risks assumed by
the insurer and makes reference to the contractual
agreement between the insurer and insured.
-if the policy provides liability coverage, the
promise to defend the insured, if sued, is found
here.
-it summarizes the major promises of the insurance
company, as well as states what is covered.
Questions with 100% Correct Answers | Verified |
Latest Update 2026
Save
Terms in this set (31)
Property Insurance Policies Protect the insured from loss caused by damage
from a covered peril to the insured property.
-property insurance pays the insured for covered
losses to the property. These are referred to as
FIRST PARTY LOSSES.
-insured property can be buildings (called real
property) such as a house or personal property
(stuff) such as a television.
-personal "my stuff" = personal belongings
Casualty Policies (Liability Insurance) Often called liability insurance, protect and
individual or business when it is found legally liable
for negligent acts or omissions that cause injury or
property damage to others.
-casualty insurance never pays the insured; it pays
the "other guy."
-these are referred to as THIRD PARTY LOSSES
-for example, if a person is injured at your house
due to your negligence, your casualty policy would
not pay for your injury.
-Casualty = Liability and always pays the other guy,
never me.
-THIRD PARTY LOSSES; 1st party- me (insured), 2nd
party- my insurer, 3rd party- the other guy.
, Policy Structure DICEE Even though property and casualty covers different
types of risks, they have a similarity in their
structure. Policies contain several parts, and, in
order to remember these parts, use the acronym
DICEE
D.I.C.E.E.
-Declarations- who, what, when, where and how
much
-Insuring Agreements- promise to pay the perils
covered
-Conditions- rules for the policy
-Endorsements and Additional Supplementary
Coverages- changes the original policy
-Exclusions- items not covered
Declarations Information relative to who, what, when and where
is found on the first page of the policy- the
DECLARATION section.
-the name of the insured, a current address, a legal
description of the insured property, the policy
deductibles and the term of the coverage are
contained in this section.
-this information is used to help determine the
premium cost of the policy.
Insuring Agreement Describes the coverage perils or risks assumed by
the insurer and makes reference to the contractual
agreement between the insurer and insured.
-if the policy provides liability coverage, the
promise to defend the insured, if sued, is found
here.
-it summarizes the major promises of the insurance
company, as well as states what is covered.
