Property and Casualty Exam
A
R
U
LA
C
O
D
, A
R
Bailee - ANS An individual or organization who has taken into its care, custody, and/or
control the property of another for servicing, repair, or storage
Hazard - ANS Something that increases the chance or likelihood of a loss occuring.
U
(physical or moral or morale)
LA
Market Value - ANS A property policy provision that changes the valuation method
otherwise applicable (ACV or RV) to a valuation method that allows reimbursement to the
insured, according to the price a willing buyer would pay for the property purches from a willing
seller
Insurable Interest
C
(limit of liability) - ANS Specifies that the insurer will not be responsible for an amount
which is greater than the financial interest of an insured person or more that the limit of liability
stated on the Declarations Page
O
Actual Cash Value
(ACV) - ANS The policy pays for the cost to repair or replace the damaged property at the
time of loss, less depreciation
D
Deductible - ANS The amount of money which the insured party must pay before the
insurance company's own coverage plan begins.
Vacancy - ANS A property that has neither occupants nor personal property is described as
vacant.
Right of Salvage - ANS The right of the insurer to take possession of damaged property
after the loss to the property has been paid. The salvage belongs to the insurer.
, Inherent Vice - ANS A condition or defect that exists within property itself that causes the
property to spoil, break, become defective, or destroy itself. Insurance policies typically exclude
inherent vice. Example: The quality of materials used in a painting allows the painting to fade or
lose luster with time.
Aircraft Hull Insurance - ANS Provides coverage on an open peril basis for physical loss or
damage to the insured aircraft, on ground, or in flight.
In flight is from the moment it moves forward for takeoff until it completes its landing run.
Motor Carrier Act of 1980 - ANS Department of Transportaion (DOT) requires:
A
-Motor carrier must carry an insurance policy of certain minimum limits, or
-Post a surety bond representing certain financial stability criteria when transporting passengers
R
or cargo.
Contribution by Equal Shares - ANS Under this concept, when 2 or more insurers' policies
cover at the same level (Primary or Excess), each insurer contributes an equal amount to the
U
loss settlement until the loss is paid, or until each insurer has exhausted its limits of insurance,
whichever comes first.
LA
Example: If there are 3 insurers participating, each would pay 33 1/3 percent of the loss; if 4
insurers participating, each would pay 25 percent of the loss; or if 5 insurers participating, each
would pay 20 percent of the loss.
Certified Act of Terrorism - ANS Any act, certified jointly as terrorism by the Secretary of
Treasury, State and Attorney General which is at least one of the following:
C
-Violent/dangerous to human life/property/infrastructure.
-Damaging within the U.S. or on U.S. air carrier/vessel/mission.
-Committed by persons on behalf of any foreign person/interest to coerce/influence the U.S.
civilian/government policy.
O
Nationwide Marine Definition - ANS Wet insurance and Dry insurance are terms that the
Nationwide Marine Definition uses in specifying risks that may be written under marine
D
insurance. The National Association of Insurance Commissioners adopted the Nationwide
Marine Definition that defines 6 broad classes of property that may be insured under marine
contract
The classes are:
1. Imports
2. Exports
A
R
U
LA
C
O
D
, A
R
Bailee - ANS An individual or organization who has taken into its care, custody, and/or
control the property of another for servicing, repair, or storage
Hazard - ANS Something that increases the chance or likelihood of a loss occuring.
U
(physical or moral or morale)
LA
Market Value - ANS A property policy provision that changes the valuation method
otherwise applicable (ACV or RV) to a valuation method that allows reimbursement to the
insured, according to the price a willing buyer would pay for the property purches from a willing
seller
Insurable Interest
C
(limit of liability) - ANS Specifies that the insurer will not be responsible for an amount
which is greater than the financial interest of an insured person or more that the limit of liability
stated on the Declarations Page
O
Actual Cash Value
(ACV) - ANS The policy pays for the cost to repair or replace the damaged property at the
time of loss, less depreciation
D
Deductible - ANS The amount of money which the insured party must pay before the
insurance company's own coverage plan begins.
Vacancy - ANS A property that has neither occupants nor personal property is described as
vacant.
Right of Salvage - ANS The right of the insurer to take possession of damaged property
after the loss to the property has been paid. The salvage belongs to the insurer.
, Inherent Vice - ANS A condition or defect that exists within property itself that causes the
property to spoil, break, become defective, or destroy itself. Insurance policies typically exclude
inherent vice. Example: The quality of materials used in a painting allows the painting to fade or
lose luster with time.
Aircraft Hull Insurance - ANS Provides coverage on an open peril basis for physical loss or
damage to the insured aircraft, on ground, or in flight.
In flight is from the moment it moves forward for takeoff until it completes its landing run.
Motor Carrier Act of 1980 - ANS Department of Transportaion (DOT) requires:
A
-Motor carrier must carry an insurance policy of certain minimum limits, or
-Post a surety bond representing certain financial stability criteria when transporting passengers
R
or cargo.
Contribution by Equal Shares - ANS Under this concept, when 2 or more insurers' policies
cover at the same level (Primary or Excess), each insurer contributes an equal amount to the
U
loss settlement until the loss is paid, or until each insurer has exhausted its limits of insurance,
whichever comes first.
LA
Example: If there are 3 insurers participating, each would pay 33 1/3 percent of the loss; if 4
insurers participating, each would pay 25 percent of the loss; or if 5 insurers participating, each
would pay 20 percent of the loss.
Certified Act of Terrorism - ANS Any act, certified jointly as terrorism by the Secretary of
Treasury, State and Attorney General which is at least one of the following:
C
-Violent/dangerous to human life/property/infrastructure.
-Damaging within the U.S. or on U.S. air carrier/vessel/mission.
-Committed by persons on behalf of any foreign person/interest to coerce/influence the U.S.
civilian/government policy.
O
Nationwide Marine Definition - ANS Wet insurance and Dry insurance are terms that the
Nationwide Marine Definition uses in specifying risks that may be written under marine
D
insurance. The National Association of Insurance Commissioners adopted the Nationwide
Marine Definition that defines 6 broad classes of property that may be insured under marine
contract
The classes are:
1. Imports
2. Exports
