Property and Casualty License in Arkansas Health Insurance Company :Complete Exam 2024

Property and Casualty License in Arkansas Health Insurance Company :Complete Exam 2024 What is Insurance? - CORRECT ANSWER-Transfers the risk of loss from individual to insurance co. What is Risk? - CORRECT ANSWER-Chance of loss occuring What are 3 types of Hazzards? - CORRECT ANSWER-Physical, Moral, Morale What is a Peril? - CORRECT ANSWER-Causes of loss insured against What does Indemnify mean? - CORRECT ANSWER-Right for Reimbursement but only to the extent of the loss. Cannot gain from loss. Define Subrogation - CORRECT ANSWER-Right to seek damages from 3rd party so that the insured cannot collect 2xs. What is an accident? - CORRECT ANSWER-Sudden unplanned event resulting in a loss What is an occurrence? - CORRECT ANSWER-Repeated action or event that results in a loss What is a direct loss? - CORRECT ANSWER-Things physically loss. For ex. If a fire burned down a house that would be a direct loss of the fire. What is an indirect loss? - CORRECT ANSWER-A loss resulting from the direct loss. For Ex. If a fire burned down a house and you had to rent a hotel room the added expense of the hotel would be an indirect loss of the fire. What is a vacancy? - CORRECT ANSWER-When someone has been absent and no property is stored on the premises for 60 days consecutively. What is unoccupied? - CORRECT ANSWER-When someone has been absent from the premises for more than 60 consecutive days but still has property stored there. What type of insurance provides coverage for multiple classes of property at one location? - CORRECT ANSWER-Blanket Insurance Explain the actual cash value method of valuation - CORRECT ANSWER-Current replacement cost-depreciation = ACV When absolute liability is involved, does the injured party have to prove negligence? - CORRECT ANSWER-No If a product is unsafe, what kind of liability applies to the manufacturer. - CORRECT ANSWER-Strict liability What is proximate cause? - CORRECT ANSWER-A reasonable cause or reason why a loss occurred. What type of policies may include insurance to value provision? - CORRECT ANSWERCoinsuranc