Property and Casualty Insurance Basics Test Questions and Correct Answers- Louisiana

Insurable Interest - 3 Elements 1.) Financial (a monetary interest) 2.) Blood (a relative) 3.) Business (a business partner) **Insurable interest must exist at the time of the loss. Named Insured The individual(s) whose name appears on the policy's declaration. First Name Insured The individual whose name appears first on the policy's declaration. Has control of the policy Only one who may cancel the policy or request changes to the policy Responsible for paying premiums and reporting losses Additional Insureds Individuals or business that are not named as insured on the declaration page, but are protected by the policy, usually in regard to a specific interest. Added to the policy by an endorsement Accident A sudden, unplanned and unexpected event, not under the control of the insured, resulting in injury or damage that is neither expected nor intended. Occurrence A broader definition of loss, which differs from accident in that it includes losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected. Peril A specific cause of loss Fire, wind, hail, and explosions Named peril A specific cause of loss listed and described in an insurance policy. Also used to describe policies containing named perils.