Social Science Business Insurance
Property and Casualty Insurance EXAM |
COMPLETE QUESTIONS AND ANSWERS |
2025 LATEST UPDATED | ALREADY GRADED
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VA Life Insurance Practice Exam (90 ... Final Exam - Louisiana Life and Heal... ALABAMA PROPERT
90 terms Teacher 150 terms Teacher 99 terms
Kelvin_Maina4 Preview charlestblough17024 Preview liaggei29o9
Specific insurance This type of insurance designates a particular item to be insured
This type of insurance covers more than one item of property at
Blanket insurance a single location or one more items of property at multiple
locations.
Speculative possibility of both gain and loss. Not insurable.
Pure only the possibility of loss. Insurable.
What are the 5 methods of avoid, control, retain, and transfer risk.
managing or handling risk?
Hazard A condition or situation which increases the chance for loss
a hazard that arises from the condition, occupancy, or use of the
property itself.
Physical Hazards
ex: skateboard left on the steps
when an individual through carelessness or by irresponsible
actions can increase the possibly for a loss.
Moral Hazards
ex: person who drives carelessly just because they know they are
insured.
when a person might create a loss situation on purpose just to
collect from the insurance company.
Morale Hazards
ex: Prearranged, faked theft of someone's old vehicle so they can
get an insurance payout to buy a new vehicle.
, The amount of money it would take to replace a damaged or
Replacement Cost destroyed item with one of like kind and quality AT THE TIME OF
LOSS. No deduction for depreciation.
Actual Cash Value (ACV) Replacement Cost, minus depreciation.
Loss to one item of a pair or set does not constitute loss to the
Pair and Set Clause
entire pair or set.
A method of resolving disputes between insurers and insureds
over the amount owed on a covered loss.
-both parties select an appraiser
Appraisal
-the two appraisers select an umpire
-if the appraisers do not agree, the umpire is consulted
-the amount agreed on by 2 out of 3 is the amount that will be
paid
An insurer's right to recover the amount of its loss payment from
Subrogation
the third party who is legally responsible for the loss.
this condition is similar to the Appraisal Condition but it is not
limited to disputes over the value of the loss. It may also be used
Arbitration
to resolve other areas of disagreement between the insured and
the insurance company.
What does WC SHAVVER stand Windstorm, Civil commotion, Smoke, Hail, Aircraft, Vehicles,
for? Volcanic eruption, Explosion, Riot
Burglar damage, Ice & snow weight, Glass breakage, Accidental
What does BIG AFFECT stand
discharge, Falling objects, Freezing of pipes, Electrical damage,
for?
Collapse, Tearing apart.
Insolvency A financial state that occurs if liabilities are greater than assets.
Knowledge of the Agents is Knowledge of the Principal
Law of Agency
(Insurance Company)
Principal Insurance Company
Insurance Services Office which is an organization established
for the benefit of its member insurance companies. This
What is the ISO? organization gathers statistics, provides loss costs, drafts policy
forms and coverage provisions and conducts inspections for rate
making purposes.
Requires the insured to carry a minimum specified amount
Coinsurance Clause (generally 80%) of the replacement cost value of the insured
property in order for partial losses to be paid in full.
A legal bar to changing or denying a fact because of one's own
previous actions or words to the contrary.
Estoppel ex: If an insurance company representative intentionally or
unintentionally gives the impression that a specific fact exists
when it does not and a client relies on that impression and is
damaged a result.
A temporary contract of insurance, oral or written, offered by an
insurer pending issuance of the policy. Usually written for a
Binder
period of 30-60 days and remains in force for that period or until
a permanent policy is either issued or denied by the insurer.
Property and Casualty Insurance EXAM |
COMPLETE QUESTIONS AND ANSWERS |
2025 LATEST UPDATED | ALREADY GRADED
A+
Save
Students also studied
Flashcard sets Study guides
VA Life Insurance Practice Exam (90 ... Final Exam - Louisiana Life and Heal... ALABAMA PROPERT
90 terms Teacher 150 terms Teacher 99 terms
Kelvin_Maina4 Preview charlestblough17024 Preview liaggei29o9
Specific insurance This type of insurance designates a particular item to be insured
This type of insurance covers more than one item of property at
Blanket insurance a single location or one more items of property at multiple
locations.
Speculative possibility of both gain and loss. Not insurable.
Pure only the possibility of loss. Insurable.
What are the 5 methods of avoid, control, retain, and transfer risk.
managing or handling risk?
Hazard A condition or situation which increases the chance for loss
a hazard that arises from the condition, occupancy, or use of the
property itself.
Physical Hazards
ex: skateboard left on the steps
when an individual through carelessness or by irresponsible
actions can increase the possibly for a loss.
Moral Hazards
ex: person who drives carelessly just because they know they are
insured.
when a person might create a loss situation on purpose just to
collect from the insurance company.
Morale Hazards
ex: Prearranged, faked theft of someone's old vehicle so they can
get an insurance payout to buy a new vehicle.
, The amount of money it would take to replace a damaged or
Replacement Cost destroyed item with one of like kind and quality AT THE TIME OF
LOSS. No deduction for depreciation.
Actual Cash Value (ACV) Replacement Cost, minus depreciation.
Loss to one item of a pair or set does not constitute loss to the
Pair and Set Clause
entire pair or set.
A method of resolving disputes between insurers and insureds
over the amount owed on a covered loss.
-both parties select an appraiser
Appraisal
-the two appraisers select an umpire
-if the appraisers do not agree, the umpire is consulted
-the amount agreed on by 2 out of 3 is the amount that will be
paid
An insurer's right to recover the amount of its loss payment from
Subrogation
the third party who is legally responsible for the loss.
this condition is similar to the Appraisal Condition but it is not
limited to disputes over the value of the loss. It may also be used
Arbitration
to resolve other areas of disagreement between the insured and
the insurance company.
What does WC SHAVVER stand Windstorm, Civil commotion, Smoke, Hail, Aircraft, Vehicles,
for? Volcanic eruption, Explosion, Riot
Burglar damage, Ice & snow weight, Glass breakage, Accidental
What does BIG AFFECT stand
discharge, Falling objects, Freezing of pipes, Electrical damage,
for?
Collapse, Tearing apart.
Insolvency A financial state that occurs if liabilities are greater than assets.
Knowledge of the Agents is Knowledge of the Principal
Law of Agency
(Insurance Company)
Principal Insurance Company
Insurance Services Office which is an organization established
for the benefit of its member insurance companies. This
What is the ISO? organization gathers statistics, provides loss costs, drafts policy
forms and coverage provisions and conducts inspections for rate
making purposes.
Requires the insured to carry a minimum specified amount
Coinsurance Clause (generally 80%) of the replacement cost value of the insured
property in order for partial losses to be paid in full.
A legal bar to changing or denying a fact because of one's own
previous actions or words to the contrary.
Estoppel ex: If an insurance company representative intentionally or
unintentionally gives the impression that a specific fact exists
when it does not and a client relies on that impression and is
damaged a result.
A temporary contract of insurance, oral or written, offered by an
insurer pending issuance of the policy. Usually written for a
Binder
period of 30-60 days and remains in force for that period or until
a permanent policy is either issued or denied by the insurer.
