Louisiana Property and Casualty Insurance Exam/ 2025-2026
Verified Questions With Answers.
C
Terms in this set (301)
Specific insurance This type of insurance designates a particular item to be insured
This type of insurance covers more than one item of property
Blanket insurance
at 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
Physical Hazards itself.
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.
Pair and Set Clause Loss to one item of a pair or set does not constitute loss to the entire
pair or set.
A method of resolving disputes between insurers and insureds
over the amount owed on a covered loss.
Appraisal -both parties select an appraiser
-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
Subrogation
from the third party who is legally responsible for the loss.
this condition is similar to the Appraisal Condition but it is not
Arbitration limited to disputes over the value of the loss. It may also be
used to resolve other areas of disagreement between the
insured and the insurance company.
Windstorm, Civil commotion, Smoke, Hail, Aircraft, Vehicles,
What does WC SHAVVER stand
for? Volcanic eruption, Explosion, Riot
Burglar damage, Ice & snow weight, Glass breakage, Accidental
What does BIG AFFECT stand
for? discharge, Falling objects, Freezing of pipes, Electrical
damage, Collapse, Tearing apart.
Insolvency A financial state that occurs if liabilities are greater than assets.
Law of Agency Knowledge of the Agents is Knowledge of the Principal (Insurance
Company)
Principal Insurance Company
Insurance Services Office which is an organization
established for the benefit of its member insurance
What is the ISO?
companies. This 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 (generally
Coinsurance Clause 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
Verified Questions With Answers.
C
Terms in this set (301)
Specific insurance This type of insurance designates a particular item to be insured
This type of insurance covers more than one item of property
Blanket insurance
at 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
Physical Hazards itself.
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.
Pair and Set Clause Loss to one item of a pair or set does not constitute loss to the entire
pair or set.
A method of resolving disputes between insurers and insureds
over the amount owed on a covered loss.
Appraisal -both parties select an appraiser
-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
Subrogation
from the third party who is legally responsible for the loss.
this condition is similar to the Appraisal Condition but it is not
Arbitration limited to disputes over the value of the loss. It may also be
used to resolve other areas of disagreement between the
insured and the insurance company.
Windstorm, Civil commotion, Smoke, Hail, Aircraft, Vehicles,
What does WC SHAVVER stand
for? Volcanic eruption, Explosion, Riot
Burglar damage, Ice & snow weight, Glass breakage, Accidental
What does BIG AFFECT stand
for? discharge, Falling objects, Freezing of pipes, Electrical
damage, Collapse, Tearing apart.
Insolvency A financial state that occurs if liabilities are greater than assets.
Law of Agency Knowledge of the Agents is Knowledge of the Principal (Insurance
Company)
Principal Insurance Company
Insurance Services Office which is an organization
established for the benefit of its member insurance
What is the ISO?
companies. This 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 (generally
Coinsurance Clause 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
