Property and Casualty Insurance EXAM NEW YORK PROPERTY AND CASUALTY 2024_With Correct Questions and Answers 100% Excel A+ Rated

Property and Casualty Insurance EXAM NEW YORK PROPERTY AND CASUALTY 2024_With Correct Questions and Answers 100% Excel A+ Rated Specific insurance - CORRECT ANSWER-This type of insurance designates a particular item to be insured Blanket insurance - CORRECT ANSWER-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 - CORRECT ANSWER-possibility of both gain and loss. Not insurable. Pure - CORRECT ANSWER-only the possibility of loss. Insurable. What are the 5 methods of managing or handling risk? - CORRECT ANSWER-avoid, control, retain, and transfer risk. Hazard - CORRECT ANSWER-A condition or situation which increases the chance for loss Physical Hazards - CORRECT ANSWER-a hazard that arises from the condition, occupancy, or use of the property itself. ex: skateboard left on the steps Moral Hazards - CORRECT ANSWER-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 - CORRECT ANSWER-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 - CORRECT ANSWER-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) - CORRECT ANSWER-Replacement Cost, minus depreciation. Pair and Set Clause - CORRECT ANSWER-Loss to one item of a pair or set does not constitute loss to the entire pair or set. Appraisal - CORRECT ANSWER-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 - CORRECT ANSWER-An insurer's right to recover the amount of its loss payment from the third party who is legally responsible for the loss. Arbitration - CORRECT ANSWER-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? - CORRECT ANSWER-Windstorm, Civil commotion, Smoke, Hail, Aircraft, Vehicles, Volcanic eruption, Explosion, Riot What does BIG AFFECT stand for? - CORRECT ANSWER-Burglar damage, Ice & snow weight, Glass breakage, Accidental discharge, Falling objects, Freezing of pipes, Electrical damage, Collapse, Tearing apart. Insolvency - CORRECT ANSWER-A financial state that occurs if liabilities are greater than assets. Law of Agency - CORRECT ANSWER-Knowledge of the Agents is Knowledge of the Principal (Insurance Company) Principal - CORRECT ANSWER-Insurance Company What is the ISO? - CORRECT ANSWER-Insurance Services Office which is an organization established for the benefit of its member insurance companies. This organization gathers statistics, provides loss costs, drafts policy forms and coverage provisions and conducts inspections for rate making purposes. Coinsurance Clause - CORRECT ANSWER-Requires the insured to carry a minimum specified amount (generally 80%) of the replacement cost value of the insured property in order for partial losses to be paid in full. Estoppel - CORRECT ANSWER-A legal bar to changing or denying a fact because of one's own previous actions or words to the contrary. ex: If an insurance company representative intentionally or unintentionally gives the impression that a specific fact exists when it does not and a client relies on that impression and is damaged a result. Binder - CORRECT ANSWER-A temporary contract of insurance, oral or written, offered by an insurer pending issuance of the policy. Usually written for a period of 30-60 days and remains in force for that period or until a permanent policy is either issued or denied by the insurer. Warranty - CORRECT ANSWER-A provision in a policy that pledges that a condition does exist or will exist at some time in the future. Deposit Premium - CORRECT ANSWER-Tentative charge made at the beginning of certain policies and reinsurance agreements to be adjusted when the actual earned charge has been later determined. Audit - CORRECT ANSWER-Verification of books or accounts to determine their accuracy. Occurrence - CORRECT ANSWER-An accident, including continuous or repeated exposure to the same harmful conditions, which result in bodily injury or property damage. Special Damages - CORRECT ANSWER-type of compensatory damages that reimburse the injured part for direct and specific expenses involved in the loss. Such as medical expenses, funeral expenses and loss wages. General Damages - CORRECT ANSWER-type of compensatory damages that reimburse the injured party for such things as pain and suffering and disfigurement. Punitive Damages - CORRECT ANSWER-type of damages intended to punish the defendant and make an example out of her to discourage others from behaving the same way. Proximate Cause - CORRECT ANSWER-An act, through an uniterrupted chain of events, that can be determined to be the immediate or actual cause of a loss. 4 elements of negligence - CORRECT ANSWER-1. The existence of a DUTY to act in a certain way 2. A FAILURE to live up to this duty 3. An actual INJURY must occur 4. The failure in duty must be the PROXIMATE CAUSE of the injury. Negligence - CORRECT ANSWER-An unreasonable or prudent act, A thoughtless or careless act or one committed out of ignorance. It may be a non-act or omission, but it is NEVER an intentional act. Casualty Insurance - CORRECT ANSWER-Refers to coverage designed to address the liability of individuals and organizations resulting from negligent acts in their personal, business, or professional roles.