Louisiana Property and Casualty Insurance Exam/ 2025-2026
Verified Questions With Answers.
The cost to replace an item of property at the time of loss,
Actual Cash Value (ACV)
less an allowance for depreciation. Often used to
determine amount of reimbursement for a loss.
A coverage designed to reimburse the insured for an increase in living
Additional Living Expense expenses
necessitated by loss to the dwelling. This indirect loss must be
the result of a direct loss by a covered peril.
A characteristic of insurance policies that means the contract
Adhesion
is prepared by the insurer and is non-negotiable or "one-
sided".
A company which meets the state insurance department's
Admitted Company
standards and is authorized to do business in the state.
The state-licensed professional who represents the insurance
Agent company in the sale and servicing of insurance. The direct link
between the insurance company and the policyholder.
A type of policy limit found in liability policies which limits
Aggregate Limit
coverage to a specified total amount for all losses occurring
within the policy period.
A characteristic of insurance contracts, meaning a contract in
Aleatory
which equal value is not given by both parties to the contract.
Alien Company An insurance company incorporated in a country other than the United
States.
Used to insure additional types of losses to property and sold
Allied Lines
in conjunction with fire insurance.
A term used to indicate that property is covered against all
All-Risk
perils except those specifically excluded.
A method determining how much will be contributed by each
Apportionment
company toward a loss covered under more than one
policy.
A structure belonging to the insured and associated with
Appurtenant Structures
the insured property. (another name for "other
structures")
A clause which provides a specific procedure when the insured and the
Appraisal Clause
, insurer are in disagreement regarding the amount of a loss.
An acknowledgment (or receipt), usually from the agent, that
Binder
insurance applied for is in force regardless of any premium
settlement.
Fidelity bond which specifies a single limit of liability
Blanket Position Bond
applicable to each employee involved in a loss.
_ ___ coverage pays for injuries, sickness, disease, or required care for
Bodily Injury
death that
the policyholder is found legally liable for.
Insurance which covers the insured against loss (liability
Boiler and Machinery Policy
and physical damage) arising out of the use of scheduled
commercial equipment.
An individual who represents the prospect, instead of the
Broker insurance company, in the insurance transaction. Frequently
involved in the placement of very large or unusual risks.
The unlawful taking of property by forced entry into the
Burglary
premises while the premises is closed for business (must be
visible evidence of forced entry or exit).
A Time-Element coverage which reimburses the insured for
Business Interruption Insurance
loss of earnings due to the inability to operate caused by a
covered peril.
A broad category of coverage against loss of property,
Casualty Insurance damage, or other liabilities. Includes auto, liability, theft,
elevator, glass, aviation, boiler and machinery, worker's
comp, bonds, and many other types of insurance.
Verified Questions With Answers.
The cost to replace an item of property at the time of loss,
Actual Cash Value (ACV)
less an allowance for depreciation. Often used to
determine amount of reimbursement for a loss.
A coverage designed to reimburse the insured for an increase in living
Additional Living Expense expenses
necessitated by loss to the dwelling. This indirect loss must be
the result of a direct loss by a covered peril.
A characteristic of insurance policies that means the contract
Adhesion
is prepared by the insurer and is non-negotiable or "one-
sided".
A company which meets the state insurance department's
Admitted Company
standards and is authorized to do business in the state.
The state-licensed professional who represents the insurance
Agent company in the sale and servicing of insurance. The direct link
between the insurance company and the policyholder.
A type of policy limit found in liability policies which limits
Aggregate Limit
coverage to a specified total amount for all losses occurring
within the policy period.
A characteristic of insurance contracts, meaning a contract in
Aleatory
which equal value is not given by both parties to the contract.
Alien Company An insurance company incorporated in a country other than the United
States.
Used to insure additional types of losses to property and sold
Allied Lines
in conjunction with fire insurance.
A term used to indicate that property is covered against all
All-Risk
perils except those specifically excluded.
A method determining how much will be contributed by each
Apportionment
company toward a loss covered under more than one
policy.
A structure belonging to the insured and associated with
Appurtenant Structures
the insured property. (another name for "other
structures")
A clause which provides a specific procedure when the insured and the
Appraisal Clause
, insurer are in disagreement regarding the amount of a loss.
An acknowledgment (or receipt), usually from the agent, that
Binder
insurance applied for is in force regardless of any premium
settlement.
Fidelity bond which specifies a single limit of liability
Blanket Position Bond
applicable to each employee involved in a loss.
_ ___ coverage pays for injuries, sickness, disease, or required care for
Bodily Injury
death that
the policyholder is found legally liable for.
Insurance which covers the insured against loss (liability
Boiler and Machinery Policy
and physical damage) arising out of the use of scheduled
commercial equipment.
An individual who represents the prospect, instead of the
Broker insurance company, in the insurance transaction. Frequently
involved in the placement of very large or unusual risks.
The unlawful taking of property by forced entry into the
Burglary
premises while the premises is closed for business (must be
visible evidence of forced entry or exit).
A Time-Element coverage which reimburses the insured for
Business Interruption Insurance
loss of earnings due to the inability to operate caused by a
covered peril.
A broad category of coverage against loss of property,
Casualty Insurance damage, or other liabilities. Includes auto, liability, theft,
elevator, glass, aviation, boiler and machinery, worker's
comp, bonds, and many other types of insurance.
