State Farm Property and Casualty Ch. 2 latest updated exam 2025 -
2026 |with expert solutions alrady graded A+ | Download to Pass
Save
insurable interest - answer the insured would incur a financial loss if the insured property was
damaged. As a result, an insurable interest may be created by the ownership, custody or control
of a property
3 elements of insurable risk - answer 1. financial
2. blood
3. business
insured - answer anyone who is covered under the policy, whether named or not
named insured - answer the individuals(s) whose name appears on the policy's declaration
First name insured - answer is the individual whose name appears first on the policy's
declaration
additional insureds - answer individuals or businesses that are not named as insureds on the
declaration page, but are protected by the policy, usually in regard to specific interest
accident - answer a sudden, unplanned and unexpected event, not under the control of the
insured, resulting in injury or damage that is neither expected nor intended
occurance - answer a broader definition of loss than accident because it includes those 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 - answer a specific cause of loss ex: fire, wind, hail, explosions
named peril - answer a term used in property insurance to describe the breath of coverage
provided under an insurance policy form that lists specific covered perils
open peril - answer a term used in property insurance to describe the breadth of coverage
provided under an insurance policy form that insures against any risk of loss that is not
specifically excluded
direct losses - answer Direct, physical damage to buildings and/or personal property and where
the peril is the proximate cause of loss
indirect losses (consequential losses) - answer losses considered a result of direct losses
liability or casualty insurance - answer exists to pay damages to a third party for reasons such as
bodily injury, property damage, personal injury, or advertising injury. Legal obligation to pay
damages.
Absolute Liability - answer imposed upon a person or company engaged in hazardous or
potentially dangerous businesses who, by negligence or by an omission, causes harm or injury
to another person or property.
Strict Liability - answer commonly applied in product liability cases. A person or business
manufactures or sells a product makes an implied warranty that the product is safe. The
business is then liable for defective products, regardless of fault or negligence. If the product
causes injury and the claimant can prove the defect, the defendant will be held strictly liable for
the damage.
2026 |with expert solutions alrady graded A+ | Download to Pass
Save
insurable interest - answer the insured would incur a financial loss if the insured property was
damaged. As a result, an insurable interest may be created by the ownership, custody or control
of a property
3 elements of insurable risk - answer 1. financial
2. blood
3. business
insured - answer anyone who is covered under the policy, whether named or not
named insured - answer the individuals(s) whose name appears on the policy's declaration
First name insured - answer is the individual whose name appears first on the policy's
declaration
additional insureds - answer individuals or businesses that are not named as insureds on the
declaration page, but are protected by the policy, usually in regard to specific interest
accident - answer a sudden, unplanned and unexpected event, not under the control of the
insured, resulting in injury or damage that is neither expected nor intended
occurance - answer a broader definition of loss than accident because it includes those 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 - answer a specific cause of loss ex: fire, wind, hail, explosions
named peril - answer a term used in property insurance to describe the breath of coverage
provided under an insurance policy form that lists specific covered perils
open peril - answer a term used in property insurance to describe the breadth of coverage
provided under an insurance policy form that insures against any risk of loss that is not
specifically excluded
direct losses - answer Direct, physical damage to buildings and/or personal property and where
the peril is the proximate cause of loss
indirect losses (consequential losses) - answer losses considered a result of direct losses
liability or casualty insurance - answer exists to pay damages to a third party for reasons such as
bodily injury, property damage, personal injury, or advertising injury. Legal obligation to pay
damages.
Absolute Liability - answer imposed upon a person or company engaged in hazardous or
potentially dangerous businesses who, by negligence or by an omission, causes harm or injury
to another person or property.
Strict Liability - answer commonly applied in product liability cases. A person or business
manufactures or sells a product makes an implied warranty that the product is safe. The
business is then liable for defective products, regardless of fault or negligence. If the product
causes injury and the claimant can prove the defect, the defendant will be held strictly liable for
the damage.
