Louisiana Property and Casualty Insurance Exam/ 2025-2026
Verified Questions With Answers.
C
Terms in this set (75)
Adverse Selection lower or poorer risks more prone to losses than normal risks.
the consideration that is being exchanged is unequal or unrelated
Aleatory Contract
to the consideration given by the other party.
named peril coverage, the least coverage available. In
Basic
dwelling policies it includes: fire, lightning, removal, and
internal explosion.
named peril coverage, covering more named perils than the
basic form. In dwelling coverage it covers all perils under basic
including EC and V&MM plus: damage by
Broad
burglars (not theft); weight of ice, snow or sleet; accidental
discharge or overflow of water or steam; freezing of
plumbing, heating, a/c, or sprinkler systems; falling
objects; artificially generated electrical current; and tearing
apart, cracking, burning, or bulging of a steam or water
system.
Builder's risk used to insure buildings under construction.
covers loss of income when a business has to suspend
because of a direct loss. Business income is covered over the
Business income time the operations are suspended while the building is being
repaired or replaced. It is calculated as the net income that
would've been earned if the loss occurred and the cost to
continue operations including payroll.
Cancellation termination of a policy by either the insurer or insured before the
expiration date.
Cargo what the ship is hauling.
after choosing commercial property coverage for the type of
property your business needs covered, you then need to choose
Causes of Loss
the causes of loss that will be covered. A business may choose
Basic, Broad, or Special cause of loss forms and the extra is
Earthquake (volcanic eruption additional) - that state the
perils protected against.
, Cease & Desist an official legal document that will require an individual to stop doing
something.
makes the insurer an admitted company and proves that the Department of
Insurance finds the company financially sound and
Certificate of Authority
structured well enough to meet the requirements of the state
insurance code to conduct insurance business in Louisiana.
Class Rating computing a rate for insurance that applies to all applicants in a certain
risk class.
Collapse covers unexpected falling down or caving in of a building.
collision coverage pays for direct and accidental loss due to
upset or collision of the vehicle with another object. Collision
Collision
coverage would provide protection for an
insured auto due to collision with another vehicle, collision with
another object such as a bridge or tree, and upset or overturn
of the vehicle subject to a deductible.
a carrier is a commercial organization that transports goods
or passengers. A carrier is classified as a common carrier
when it dedicates its property to public use in such a manner
Common Carrier that its services are available to the public on a regular basis.
Common
carriers hold themselves out to the public as engaged in the
business of transporting persons or property from site to site
for compensation or a fee. Examples of common carriers
include railroads, bus companies, trucking firms, taxicab
companies, airlines, and ferries.
conditions that apply to all coverage parts such as cancellation,
Common Conditions
changes, inspections, examination of books and records, etc.
provides information as to who, what, when, where and how
much. It will include the insurance company name, the named
insured, policy period, business description, coverage parts,
Common Declarations
premium, and policy forms. All policies take effect on 12:01 AM at
the mailing address of the insured listed in the policy. It
contains the list of 7 coverage parts followed by the
appropriate premium if there is coverage for the part, but no
premium listed if the part is not included in the package.
states with laws that require employers to provide worker's
Compulsory
compensation insurance under penalty of law.
when a producer gets into the insurance business in
Controlled Business
Louisiana to sell only to themselves, their family and
Verified Questions With Answers.
C
Terms in this set (75)
Adverse Selection lower or poorer risks more prone to losses than normal risks.
the consideration that is being exchanged is unequal or unrelated
Aleatory Contract
to the consideration given by the other party.
named peril coverage, the least coverage available. In
Basic
dwelling policies it includes: fire, lightning, removal, and
internal explosion.
named peril coverage, covering more named perils than the
basic form. In dwelling coverage it covers all perils under basic
including EC and V&MM plus: damage by
Broad
burglars (not theft); weight of ice, snow or sleet; accidental
discharge or overflow of water or steam; freezing of
plumbing, heating, a/c, or sprinkler systems; falling
objects; artificially generated electrical current; and tearing
apart, cracking, burning, or bulging of a steam or water
system.
Builder's risk used to insure buildings under construction.
covers loss of income when a business has to suspend
because of a direct loss. Business income is covered over the
Business income time the operations are suspended while the building is being
repaired or replaced. It is calculated as the net income that
would've been earned if the loss occurred and the cost to
continue operations including payroll.
Cancellation termination of a policy by either the insurer or insured before the
expiration date.
Cargo what the ship is hauling.
after choosing commercial property coverage for the type of
property your business needs covered, you then need to choose
Causes of Loss
the causes of loss that will be covered. A business may choose
Basic, Broad, or Special cause of loss forms and the extra is
Earthquake (volcanic eruption additional) - that state the
perils protected against.
, Cease & Desist an official legal document that will require an individual to stop doing
something.
makes the insurer an admitted company and proves that the Department of
Insurance finds the company financially sound and
Certificate of Authority
structured well enough to meet the requirements of the state
insurance code to conduct insurance business in Louisiana.
Class Rating computing a rate for insurance that applies to all applicants in a certain
risk class.
Collapse covers unexpected falling down or caving in of a building.
collision coverage pays for direct and accidental loss due to
upset or collision of the vehicle with another object. Collision
Collision
coverage would provide protection for an
insured auto due to collision with another vehicle, collision with
another object such as a bridge or tree, and upset or overturn
of the vehicle subject to a deductible.
a carrier is a commercial organization that transports goods
or passengers. A carrier is classified as a common carrier
when it dedicates its property to public use in such a manner
Common Carrier that its services are available to the public on a regular basis.
Common
carriers hold themselves out to the public as engaged in the
business of transporting persons or property from site to site
for compensation or a fee. Examples of common carriers
include railroads, bus companies, trucking firms, taxicab
companies, airlines, and ferries.
conditions that apply to all coverage parts such as cancellation,
Common Conditions
changes, inspections, examination of books and records, etc.
provides information as to who, what, when, where and how
much. It will include the insurance company name, the named
insured, policy period, business description, coverage parts,
Common Declarations
premium, and policy forms. All policies take effect on 12:01 AM at
the mailing address of the insured listed in the policy. It
contains the list of 7 coverage parts followed by the
appropriate premium if there is coverage for the part, but no
premium listed if the part is not included in the package.
states with laws that require employers to provide worker's
Compulsory
compensation insurance under penalty of law.
when a producer gets into the insurance business in
Controlled Business
Louisiana to sell only to themselves, their family and
