ARKANSAS PROPERTY AND CASUALTY INSURANCE
EXAM 2024 ACTUAL EXAM COMPLETE 250 QUESTIONS
WITH DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) / ALREADY GRADED A+
Abandonment - ANSWER: The abdication of insured property into the hands of
another, or into the possession of no one in particular.
Absolute liability - ANSWER: A type of liability that occurs due to extremely
dangerous operations such as the use of explosives or working at extreme Heights.
Accident - ANSWER: And unplanned unforeseen event which occurs suddenly and at
a specific place
Actual cash value (ACV) - ANSWER: The required amount to pay damages or for
property loss which is calculated based on the properties current replacement value
minus depreciation
Additional coverage - ANSWER: A provision in an insurance policy that allows for
more coverage for specific loss expense without increase in premium
Additional Insureds - ANSWER: 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
Adhesion - ANSWER: A contract offered on a "take-it-or-leave-it" bases by an insurer,
in which the insured's only option is to except or reject the contract. Any ambiguities
in the contract will be settled in favor of the insured
Admitted Insurer - ANSWER: An insurance company authorized and licensed to
transact business in a particular state
Adverse selection - ANSWER: The tendency of risks with higher probability of loss to
purchase and maintain insurance more often then the risks who present lower
probability
Agent - ANSWER: An individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of an insurer
Aggregate Limit - ANSWER: The maximum limit of coverage available under a liability
policy during a policy year regardless of the number of claims that may be made or
the number of accidents that may occur
, Agreed value - ANSWER: A property policy with a provision agreed-upon by the
insurer and insured as to the amount of insurance that represents a fair valuation for
the property at the time the insurance is written
Aleatory - ANSWER: A contract in which the participating parties agree to exchange
unequal amounts. Insurance contracts are aleatory in the amount the insured will
pay in premiums is unequal to the amount the insurer will pay in the event of a loss
Alien Insurer - ANSWER: And insurance company that is Incorporated outside the
United States
Apparent authority - ANSWER: The appearance or the assumption of authority based
on the actions, words, or deeds of the principal or because of circumstances the
principal created
Appraisal - ANSWER: An assessment of property to determine either the correct
amount of insurance to be written or the amount of loss to be paid
Arbitration - ANSWER: Method of claim settlement used when the insured and
insurer cannot agree upon the amount of the loss
Assignment - ANSWER: The transfer of a legal right or interest in an insurance policy.
In property and casualty insurance, assignments of policies are usually valid only
with the prior written consent of the insurer
Authorized Insurer - ANSWER: An insurance company that has qualified and received
a Certificate of Authority from the Department of Insurance to transact insurance in
the state
Auto - ANSWER: A land motor vehicle, trailer or semi trailer designed for use on
public roads, including attached machinery or equipment, auto does not include
mobile equipment
Avoidance - ANSWER: A method of dealing with risk by deliberately keeping away
from it (e.g. if a person wanted to avoid the risk of being killed in an airplane crash
he/she might choose never to fly in a plane)
Bailee - ANSWER: A person or entity that has possession of personal property
entrusted to him/her by the owner. For example, a television repair person that has
possession of a customers television would be a Bailee.
Beneficiary - ANSWER: The person who receives the proceeds from the insurance
policy
Binder - ANSWER: A temporary contract and puts an insurance policy into force
before the premium has been paid
EXAM 2024 ACTUAL EXAM COMPLETE 250 QUESTIONS
WITH DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) / ALREADY GRADED A+
Abandonment - ANSWER: The abdication of insured property into the hands of
another, or into the possession of no one in particular.
Absolute liability - ANSWER: A type of liability that occurs due to extremely
dangerous operations such as the use of explosives or working at extreme Heights.
Accident - ANSWER: And unplanned unforeseen event which occurs suddenly and at
a specific place
Actual cash value (ACV) - ANSWER: The required amount to pay damages or for
property loss which is calculated based on the properties current replacement value
minus depreciation
Additional coverage - ANSWER: A provision in an insurance policy that allows for
more coverage for specific loss expense without increase in premium
Additional Insureds - ANSWER: 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
Adhesion - ANSWER: A contract offered on a "take-it-or-leave-it" bases by an insurer,
in which the insured's only option is to except or reject the contract. Any ambiguities
in the contract will be settled in favor of the insured
Admitted Insurer - ANSWER: An insurance company authorized and licensed to
transact business in a particular state
Adverse selection - ANSWER: The tendency of risks with higher probability of loss to
purchase and maintain insurance more often then the risks who present lower
probability
Agent - ANSWER: An individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of an insurer
Aggregate Limit - ANSWER: The maximum limit of coverage available under a liability
policy during a policy year regardless of the number of claims that may be made or
the number of accidents that may occur
, Agreed value - ANSWER: A property policy with a provision agreed-upon by the
insurer and insured as to the amount of insurance that represents a fair valuation for
the property at the time the insurance is written
Aleatory - ANSWER: A contract in which the participating parties agree to exchange
unequal amounts. Insurance contracts are aleatory in the amount the insured will
pay in premiums is unequal to the amount the insurer will pay in the event of a loss
Alien Insurer - ANSWER: And insurance company that is Incorporated outside the
United States
Apparent authority - ANSWER: The appearance or the assumption of authority based
on the actions, words, or deeds of the principal or because of circumstances the
principal created
Appraisal - ANSWER: An assessment of property to determine either the correct
amount of insurance to be written or the amount of loss to be paid
Arbitration - ANSWER: Method of claim settlement used when the insured and
insurer cannot agree upon the amount of the loss
Assignment - ANSWER: The transfer of a legal right or interest in an insurance policy.
In property and casualty insurance, assignments of policies are usually valid only
with the prior written consent of the insurer
Authorized Insurer - ANSWER: An insurance company that has qualified and received
a Certificate of Authority from the Department of Insurance to transact insurance in
the state
Auto - ANSWER: A land motor vehicle, trailer or semi trailer designed for use on
public roads, including attached machinery or equipment, auto does not include
mobile equipment
Avoidance - ANSWER: A method of dealing with risk by deliberately keeping away
from it (e.g. if a person wanted to avoid the risk of being killed in an airplane crash
he/she might choose never to fly in a plane)
Bailee - ANSWER: A person or entity that has possession of personal property
entrusted to him/her by the owner. For example, a television repair person that has
possession of a customers television would be a Bailee.
Beneficiary - ANSWER: The person who receives the proceeds from the insurance
policy
Binder - ANSWER: A temporary contract and puts an insurance policy into force
before the premium has been paid
