GA Property & Casualty Exam/Updated/37
Questions and Answers/100% Correct.
Insurance policy covers what type of losses - -Direct and Indirect
-In order to have an indirect loss, you must have - -a direct loss
-What does property insurance cover? - -structures and contents
-Direct loss - -physical destruction of property by lightening, wind, fire, theft, etc
-Indirect loss - -consequences of direct losses - e.g. loss of income, additional expenses to
live, loss of rental income, etc.
-What is the purpose of personal lines insurance? - -Coverage for personal activities of
the insured for losses that might take place
-What is the purpose of commercial insurance? - -policies that cover NON personal
activities of the insured where losses might take place
-Who transfers risk in insurance? - -Insurance involves transfer of YOUR risk to other
people for your losses to be covered
-How do insurance companies use premiums? - -Insurance companies use our premiums
to cover losses of the few.
-Named Insured - -HIGHEST ranking insured for any policy
-Who is the insurance company? - -The author of the policy, issuer of the policy, and
enforcer of policy
-Cancellation - -Stop policy mid-term before it has the chance to expire. Both insurer and
insured can cancel a policy
-Insured cancels policy - -Request must be made in writing
-Risk - -uncertainty of loss. The area between 1 and 100.
-Made Whole - -Put you back like you were as if the loss never happened
-What kind of losses does insurance cover? - -Insurance covers financial losses
-Does insurance cover sentimental losses? - -No
-3 ways to manage risks - -avoidance, reduction, retention
Questions and Answers/100% Correct.
Insurance policy covers what type of losses - -Direct and Indirect
-In order to have an indirect loss, you must have - -a direct loss
-What does property insurance cover? - -structures and contents
-Direct loss - -physical destruction of property by lightening, wind, fire, theft, etc
-Indirect loss - -consequences of direct losses - e.g. loss of income, additional expenses to
live, loss of rental income, etc.
-What is the purpose of personal lines insurance? - -Coverage for personal activities of
the insured for losses that might take place
-What is the purpose of commercial insurance? - -policies that cover NON personal
activities of the insured where losses might take place
-Who transfers risk in insurance? - -Insurance involves transfer of YOUR risk to other
people for your losses to be covered
-How do insurance companies use premiums? - -Insurance companies use our premiums
to cover losses of the few.
-Named Insured - -HIGHEST ranking insured for any policy
-Who is the insurance company? - -The author of the policy, issuer of the policy, and
enforcer of policy
-Cancellation - -Stop policy mid-term before it has the chance to expire. Both insurer and
insured can cancel a policy
-Insured cancels policy - -Request must be made in writing
-Risk - -uncertainty of loss. The area between 1 and 100.
-Made Whole - -Put you back like you were as if the loss never happened
-What kind of losses does insurance cover? - -Insurance covers financial losses
-Does insurance cover sentimental losses? - -No
-3 ways to manage risks - -avoidance, reduction, retention
