Louisiana Property and Casualty Insurance Exam/ 2025-2026
Verified Questions With Answers.
Terms in this set (124)
Policy includes the identity and address of the name insured, the
policy term or period, the amount of insurance or limits of liability,
Declarations
the policy premium, and any
applicable deductibles. Will also include either a property
description or a schedule of coverage parts, and a list of any
endorsements.
Set provisions, rules of conduct, duties and obligations for the
parties. A number of common insurance conditions describe
Conditions such things as the policy period and
territory. It also includes the insured's obligation to provide proof of loss, how
settlements are handles when other insurance is involved, and the
right of each party to cancel the policy.
May describe property, perils, hazards, or losses arising from
Exclusions
specific causes that are not covered by the policy.
May eliminate or reduce coverage, but only under certain
Limitations
circumstances or when specified conditions apply.
The insured cannot simply abandon the property to the insurance
Abandonment
company in exchange for the full-insured value.
If the insurer pays a loss on behalf of the insured, the insurer is
Salvage
entitled to the salvage to reduce the claim
Used when the insurer has paid a covered claim on the behalf of
the insured that is caused by another party. The insurance
Subrogation Clause
company is entitled to the insured's right of recovery from the
negligent party. This is sometimes called the "Transfer of Right of
Recovery Against Other to Us"
, The building is void of contents and people. The building is simply
Vacany not being used. In most cases the insured can purchase Vacancy
permit coverage restored for an
additional premium.
Unoccupancy The premises are void of people.
Named Peril This form lists the specific perils to be covered in the policy.
Open Peril Does not list the perils but provides broader coverage.
Those that have insurable interest in the property who would
suffer a financial loss if the property were damaged by an
Definition of the Insured
insured peril can be considered an insured. In
personal insurance, this can include family members without listing
their names on the declarations page of the policy. Additional
insureds such as a lien holder.
Before a person can obtain an insurance policy, they must have
this in the property being insured. A person is deemed to have
Insurable Interest this in property when he has a lawful, substantial, economic
interest in the preservation of the property. The term "person"
includes an individual, company, insurer, association,
organization, reciprocal,
partnership, or any other legal entity.
Risk Possibility that a loss might occur and is the reason that people buy insurance.
Peril Actual cause of a loss (fire, windstorm, hail)
Hazard Any condition that increases the possibility of a loss
Moral Hazard A condition of morals or habits that increases the probability of a loss from
peril.
Hazard arising out of an insured's indifference to loss because of
Morale Hazard
the existence of insurance.
A situation where there is only the possibility of a loss. Example would be
Pure Risk catastrophic medical expenses, liability law suit, damage to
property by fire. This type of risk is insurable.
A situation where either profit or loss in possible. Example would
Speculative Risk
be betting on a horse race or investing in real estate. This type of
risk in not insurable.
These factors are historical factors that do no frequently
Static Risk fluctuate. They result from "static" or "unchanging" environment.
Example would be an area that may only flood every 100 years.
This type of risk is insurable.
This is associated with chance. Example would be a new and fatal
Dynamic Risk
virus spontaneously erupting into society. This is not insurable.
Verified Questions With Answers.
Terms in this set (124)
Policy includes the identity and address of the name insured, the
policy term or period, the amount of insurance or limits of liability,
Declarations
the policy premium, and any
applicable deductibles. Will also include either a property
description or a schedule of coverage parts, and a list of any
endorsements.
Set provisions, rules of conduct, duties and obligations for the
parties. A number of common insurance conditions describe
Conditions such things as the policy period and
territory. It also includes the insured's obligation to provide proof of loss, how
settlements are handles when other insurance is involved, and the
right of each party to cancel the policy.
May describe property, perils, hazards, or losses arising from
Exclusions
specific causes that are not covered by the policy.
May eliminate or reduce coverage, but only under certain
Limitations
circumstances or when specified conditions apply.
The insured cannot simply abandon the property to the insurance
Abandonment
company in exchange for the full-insured value.
If the insurer pays a loss on behalf of the insured, the insurer is
Salvage
entitled to the salvage to reduce the claim
Used when the insurer has paid a covered claim on the behalf of
the insured that is caused by another party. The insurance
Subrogation Clause
company is entitled to the insured's right of recovery from the
negligent party. This is sometimes called the "Transfer of Right of
Recovery Against Other to Us"
, The building is void of contents and people. The building is simply
Vacany not being used. In most cases the insured can purchase Vacancy
permit coverage restored for an
additional premium.
Unoccupancy The premises are void of people.
Named Peril This form lists the specific perils to be covered in the policy.
Open Peril Does not list the perils but provides broader coverage.
Those that have insurable interest in the property who would
suffer a financial loss if the property were damaged by an
Definition of the Insured
insured peril can be considered an insured. In
personal insurance, this can include family members without listing
their names on the declarations page of the policy. Additional
insureds such as a lien holder.
Before a person can obtain an insurance policy, they must have
this in the property being insured. A person is deemed to have
Insurable Interest this in property when he has a lawful, substantial, economic
interest in the preservation of the property. The term "person"
includes an individual, company, insurer, association,
organization, reciprocal,
partnership, or any other legal entity.
Risk Possibility that a loss might occur and is the reason that people buy insurance.
Peril Actual cause of a loss (fire, windstorm, hail)
Hazard Any condition that increases the possibility of a loss
Moral Hazard A condition of morals or habits that increases the probability of a loss from
peril.
Hazard arising out of an insured's indifference to loss because of
Morale Hazard
the existence of insurance.
A situation where there is only the possibility of a loss. Example would be
Pure Risk catastrophic medical expenses, liability law suit, damage to
property by fire. This type of risk is insurable.
A situation where either profit or loss in possible. Example would
Speculative Risk
be betting on a horse race or investing in real estate. This type of
risk in not insurable.
These factors are historical factors that do no frequently
Static Risk fluctuate. They result from "static" or "unchanging" environment.
Example would be an area that may only flood every 100 years.
This type of risk is insurable.
This is associated with chance. Example would be a new and fatal
Dynamic Risk
virus spontaneously erupting into society. This is not insurable.
