SC Personal Lines State Exam
questions with 100% correct
answers with
Rationales(GUARANTEED
SUCCESSS)
Actual Cash Value (ACV) - answer The replacement cost of
lost or damaged property minus depreciation.
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.
Abandonment - answer The abdication of insured
property into the hands of another, or into the possession
of no one in particular.
Additional coverage - answer A provision in an insurance
policy that provides additional amounts of coverage for
specific loss expense at no additional premium.
Adhesion - answer Contract which is offered on take it or
leave it basis. Insured can only accept or reject and get
insurance elsewhere
,Admitted Insurer - answer Insurance company with
certificate of authority from Department of Insurance to
transact insurance in the state
Adverse Selection - answer insuring of risks that are more
prone to losses than the average risk
agent - answer Person who acts on behalf of insurer to
sell, negotiate or effect insurance contracts-also know as
producer
insurance - answer Transfer of PURE risk to insurance
company in consideration for monthly premium
Pure Risk - answer A chance of loss with no chance for
gain.
Risk - answer Uncertainty of loss
hazard - answer Increases the chance of loss
peril - answer cause of loss
, Law of Large Numbers - answer allows insurers to predict
claims more accurately
Law of Large Numbers - answer Applies to groups of
people, not individuals
Most insurers but reinsurance to protect themselves in
event of catastrophic loss - answer True
Insurance laws - answer not required to be uniform from
one state to another
4 parts of a policy - answer DICE:
Declarations
Insuring Agreement
Conditions
Exclusions
Exclusions - answer Lists perils that are NOT covered
Endorsements - answer Changes the TERMS of policy, not
policy conditions
questions with 100% correct
answers with
Rationales(GUARANTEED
SUCCESSS)
Actual Cash Value (ACV) - answer The replacement cost of
lost or damaged property minus depreciation.
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.
Abandonment - answer The abdication of insured
property into the hands of another, or into the possession
of no one in particular.
Additional coverage - answer A provision in an insurance
policy that provides additional amounts of coverage for
specific loss expense at no additional premium.
Adhesion - answer Contract which is offered on take it or
leave it basis. Insured can only accept or reject and get
insurance elsewhere
,Admitted Insurer - answer Insurance company with
certificate of authority from Department of Insurance to
transact insurance in the state
Adverse Selection - answer insuring of risks that are more
prone to losses than the average risk
agent - answer Person who acts on behalf of insurer to
sell, negotiate or effect insurance contracts-also know as
producer
insurance - answer Transfer of PURE risk to insurance
company in consideration for monthly premium
Pure Risk - answer A chance of loss with no chance for
gain.
Risk - answer Uncertainty of loss
hazard - answer Increases the chance of loss
peril - answer cause of loss
, Law of Large Numbers - answer allows insurers to predict
claims more accurately
Law of Large Numbers - answer Applies to groups of
people, not individuals
Most insurers but reinsurance to protect themselves in
event of catastrophic loss - answer True
Insurance laws - answer not required to be uniform from
one state to another
4 parts of a policy - answer DICE:
Declarations
Insuring Agreement
Conditions
Exclusions
Exclusions - answer Lists perils that are NOT covered
Endorsements - answer Changes the TERMS of policy, not
policy conditions
