Exam Fx Chapter 2 Property and
Casualty Insurance Basics questions
and answers Graded A+
Financial (monetary interest)
Blood(a relative)
Business(a business partner) - answers3 elements of insurable risk
at the time of the loss - answersIn property and casualty insurance, insurable interest
must exist __ ___ ____ __ ___ ____
insured - answersanyone who is covered under the policy, whether named or not
named insured - answersthe individual whose name appears on the policy's declaration
first named insured - answersthe individual whose name appears first on the policy's
declaration.
additional insureds - answersIndividuals 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.
accident - answersA sudden, unplanned and unexpected event, not under the control of
the insured, resulting in injury or damage that is neither expected nor intended.
occurrence - answersa 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 - answersa specific cause of loss; includes fire, wind, hail, and explosions
named peril - answersterm used in property insurance to describe the breadth of
coverage provided under an insurance policy form that lists specific covered perils; no
coverage is provided for unlisted perils
open peril - answersTerm 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 loss - answersdirect physical damage to buildings and/or personal property. also
includes other damage where the insured peril was the proximate cause of loss.
, i.e. a building catches fire, the fire dept applies water to put out the fire, and the walls
and floor suffer water damage. the damage is paid because the cause was the fire
indirect/consequential losses - answerslosses considered as a result of direct loss;
these losses usually result from the time it takes to repair or replace damaged property
liability/casualty insurance - answersthis type of insurance exists to pay damages to a
third party for reasons such as bodily injury, property damage, personal injury, or
advertising injury
liability - answersa legal obligation to pay for damages that were incurred for which you
may be responsible due to negligence
third party - answersLiability insurance does not pay the policyowner, but pays a _____
______ instead
absolute liability - answersA type of liability that occurs due to extremely dangerous
operations, such as the use of explosives or working at extreme heights.
strict liability - answersA liability that refers to damages caused by defective products
even though the manufacturer's fault or negligence cannot be proven.
Vicarious Liability - answersA type of liability in which one person is responsible for the
acts of another. For example, employers may be vicariously liable for the actions of their
employees, and parents may be held responsible for negligent acts of their children.
negligence - answersthe failure to use the care that a reasonable, prudent person would
have taken under the same or similar circumstances
Legal Duty
Standard of care
Unbroken chain of events
Actual loss or damage - answersElements of a Negligent Act
Comparative Negligence - answersA rule in tort law that reduces the plaintiff's recovery
in proportion to the plaintiff's degree of fault, rather than barring recovery completely;
used in the majority of states.
Contributory Negligence - answersthe injured party must be completely free of fault in
order to collect
Intervening Cause Doctrine - answersa doctrine that bars or reduces recovery to an
injured person if an intervening cause interrupted the chain of events and set in motion
a new chain of events.
Casualty Insurance Basics questions
and answers Graded A+
Financial (monetary interest)
Blood(a relative)
Business(a business partner) - answers3 elements of insurable risk
at the time of the loss - answersIn property and casualty insurance, insurable interest
must exist __ ___ ____ __ ___ ____
insured - answersanyone who is covered under the policy, whether named or not
named insured - answersthe individual whose name appears on the policy's declaration
first named insured - answersthe individual whose name appears first on the policy's
declaration.
additional insureds - answersIndividuals 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.
accident - answersA sudden, unplanned and unexpected event, not under the control of
the insured, resulting in injury or damage that is neither expected nor intended.
occurrence - answersa 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 - answersa specific cause of loss; includes fire, wind, hail, and explosions
named peril - answersterm used in property insurance to describe the breadth of
coverage provided under an insurance policy form that lists specific covered perils; no
coverage is provided for unlisted perils
open peril - answersTerm 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 loss - answersdirect physical damage to buildings and/or personal property. also
includes other damage where the insured peril was the proximate cause of loss.
, i.e. a building catches fire, the fire dept applies water to put out the fire, and the walls
and floor suffer water damage. the damage is paid because the cause was the fire
indirect/consequential losses - answerslosses considered as a result of direct loss;
these losses usually result from the time it takes to repair or replace damaged property
liability/casualty insurance - answersthis type of insurance exists to pay damages to a
third party for reasons such as bodily injury, property damage, personal injury, or
advertising injury
liability - answersa legal obligation to pay for damages that were incurred for which you
may be responsible due to negligence
third party - answersLiability insurance does not pay the policyowner, but pays a _____
______ instead
absolute liability - answersA type of liability that occurs due to extremely dangerous
operations, such as the use of explosives or working at extreme heights.
strict liability - answersA liability that refers to damages caused by defective products
even though the manufacturer's fault or negligence cannot be proven.
Vicarious Liability - answersA type of liability in which one person is responsible for the
acts of another. For example, employers may be vicariously liable for the actions of their
employees, and parents may be held responsible for negligent acts of their children.
negligence - answersthe failure to use the care that a reasonable, prudent person would
have taken under the same or similar circumstances
Legal Duty
Standard of care
Unbroken chain of events
Actual loss or damage - answersElements of a Negligent Act
Comparative Negligence - answersA rule in tort law that reduces the plaintiff's recovery
in proportion to the plaintiff's degree of fault, rather than barring recovery completely;
used in the majority of states.
Contributory Negligence - answersthe injured party must be completely free of fault in
order to collect
Intervening Cause Doctrine - answersa doctrine that bars or reduces recovery to an
injured person if an intervening cause interrupted the chain of events and set in motion
a new chain of events.
