New York State Property and Casualty Insurance
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Terms in this set (301)
Specific insurance This type of insurance designates a particular item
to be insured
Blanket insurance This type of insurance covers more than one item
of property at a single location or one more items
of property at multiple locations.
Speculative possibility of both gain and loss. Not insurable.
Pure only the possibility of loss. Insurable.
What are the 5 methods of managing avoid, control, retain, and transfer risk.
or handling risk?
Hazard A condition or situation which increases the chance
for loss
Physical Hazards a hazard that arises from the condition, occupancy,
or use of the property itself.
ex: skateboard left on the steps
,Moral Hazards when an individual through carelessness or by
irresponsible actions can increase the possibly for
a loss.
ex: person who drives carelessly just because they
know they are insured.
Morale Hazards when a person might create a loss situation on
purpose just to collect from the insurance
company.
ex: Prearranged, faked theft of someone's old
vehicle so they can get an insurance payout to buy
a new vehicle.
Replacement Cost The amount of money it would take to replace a
damaged or destroyed item with one of like kind
and quality AT THE TIME OF LOSS. No deduction
for depreciation.
Actual Cash Value (ACV) Replacement Cost, minus depreciation.
Pair and Set Clause Loss to one item of a pair or set does not
constitute loss to the entire pair or set.
, Appraisal A method of resolving disputes between insurers
and insureds over the amount owed on a covered
loss.
-both parties select an appraiser
-the two appraisers select an umpire
-if the appraisers do not agree, the umpire is
consulted
-the amount agreed on by 2 out of 3 is the amount
that will be paid
Subrogation An insurer's right to recover the amount of its loss
payment from the third party who is legally
responsible for the loss.
Arbitration this condition is similar to the Appraisal Condition
but it is not limited to disputes over the value of the
loss. It may also be used to resolve other areas of
disagreement between the insured and the
insurance company.
What does WC SHAVVER stand for? Windstorm, Civil commotion, Smoke, Hail, Aircraft,
Vehicles, Volcanic eruption, Explosion, Riot
What does BIG AFFECT stand for? Burglar damage, Ice & snow weight, Glass
breakage, Accidental discharge, Falling objects,
Freezing of pipes, Electrical damage, Collapse,
Tearing apart.
Insolvency A financial state that occurs if liabilities are greater
than assets.
Law of Agency Knowledge of the Agents is Knowledge of the
Principal (Insurance Company)
Exam | Questions with 100% Correct Answers |
Verified | Latest Update 2026
Save
Terms in this set (301)
Specific insurance This type of insurance designates a particular item
to be insured
Blanket insurance This type of insurance covers more than one item
of property at a single location or one more items
of property at multiple locations.
Speculative possibility of both gain and loss. Not insurable.
Pure only the possibility of loss. Insurable.
What are the 5 methods of managing avoid, control, retain, and transfer risk.
or handling risk?
Hazard A condition or situation which increases the chance
for loss
Physical Hazards a hazard that arises from the condition, occupancy,
or use of the property itself.
ex: skateboard left on the steps
,Moral Hazards when an individual through carelessness or by
irresponsible actions can increase the possibly for
a loss.
ex: person who drives carelessly just because they
know they are insured.
Morale Hazards when a person might create a loss situation on
purpose just to collect from the insurance
company.
ex: Prearranged, faked theft of someone's old
vehicle so they can get an insurance payout to buy
a new vehicle.
Replacement Cost The amount of money it would take to replace a
damaged or destroyed item with one of like kind
and quality AT THE TIME OF LOSS. No deduction
for depreciation.
Actual Cash Value (ACV) Replacement Cost, minus depreciation.
Pair and Set Clause Loss to one item of a pair or set does not
constitute loss to the entire pair or set.
, Appraisal A method of resolving disputes between insurers
and insureds over the amount owed on a covered
loss.
-both parties select an appraiser
-the two appraisers select an umpire
-if the appraisers do not agree, the umpire is
consulted
-the amount agreed on by 2 out of 3 is the amount
that will be paid
Subrogation An insurer's right to recover the amount of its loss
payment from the third party who is legally
responsible for the loss.
Arbitration this condition is similar to the Appraisal Condition
but it is not limited to disputes over the value of the
loss. It may also be used to resolve other areas of
disagreement between the insured and the
insurance company.
What does WC SHAVVER stand for? Windstorm, Civil commotion, Smoke, Hail, Aircraft,
Vehicles, Volcanic eruption, Explosion, Riot
What does BIG AFFECT stand for? Burglar damage, Ice & snow weight, Glass
breakage, Accidental discharge, Falling objects,
Freezing of pipes, Electrical damage, Collapse,
Tearing apart.
Insolvency A financial state that occurs if liabilities are greater
than assets.
Law of Agency Knowledge of the Agents is Knowledge of the
Principal (Insurance Company)
