RI PROPERTY AND CASUALTY QUESTIONS WITH
COMPLETE SOLUTIONS
Absolute Liability Correct Answers type of liability imposed by
law on those participating in certain activities that are
considered especially hazardous. may be held liable for the
damages of another, even though the individual was not
negligent (owners of pools and firearms)
Actual Cash Value (ACV) Correct Answers the cost to replace
an item of property at the time of loss, less depreciation. may be
used to determine the amount of reimbursement for a loss
Appraisal Correct Answers professional assessment of a
property's value. used to determine the value an item or
determine the extent of damage. insurance has the right to hire
an independent appraiser to asses cost of damage
Arbitration Correct Answers procedure in which an insurance
company and the insured or a vendor agree to settle a claim
dispute by accepting a decision made by a third party.
Automobile: Business Auto - Exclusions Correct Answers
business auto liability:
-expected intended injuries
-assumed under contract agreement
-for work-related injuries to employees
-for damage to property owned by/in custody of the insured
-damaged arising out of the movement of property
-completed operations
-pollution damage
,-assumed under a contract
-war
-covered autos used for racing/demolition/stunts
physical damage:
-sound reproducing/receiving equipment
-wear and tear, freezing, mechanical/electrical breakdown,
damage to tiers
-war/nuclear events
-covered autos used for racing/demolition/stunts, decrease in
value
Automobile: Business Auto - Garage Coverage Form Correct
Answers provides liability coverage, garage keepers coverage,
physical damage coverage. covers both auto and business
liability arising out of the ownership, maintenance, or use of
covered autos, and garage operations
Automobile: Business Auto - Individual Insured and Drive
Other Car Correct Answers commonly used when an employee
does not carry personal auto insurance because he/she is
furnished a company auto. Coverage under the endorsement
would come into play in the event the individual designated in
the endorsement (including his or her resident spouse) is driving
a nonowned auto for personal use.
Automobile: Business Auto - Types of Auto -
Transportation/Rental Reimbursement Expense Correct Answers
up to $20 a day with a max of $600 for transportation expenses
incurred by the insured because of physical damage losses to the
insured's covered auto and loss of use expenses for which the
,insured becomes legally responsible for because a non owned
vehicle
Automobile: Personal Auto/Business Auto - Liability - Bodily
Injury Correct Answers part of the insurance policy that pays
for the costs associated with injuries to the other person or
people involved. This coverage also provides a legal defense in
the event that you are sued for damages.
Automobile: Personal Auto/Business Auto - Liability -
Combined Single Limit Correct Answers a single dollar limit
that applies to any combination of bodily injury and property
damage liability claims
Automobile: Personal Auto/Business Auto - Liability - Property
Damage Correct Answers covers the cost of damages to
someone else's property after an accident the insured caused.
most commonly, the insured's property damage will pay out
when the insured is at fault for an accident that causes damage to
someone else's car
Automobile: Personal Auto/Business Auto - Liability - Split
Limits Correct Answers a provision of an insurance policy that
states different maximum dollar amounts the insurer will pay for
different components of a claim. three separate dollar amounts
apply to each accident: per person limit, per occurrence limit for
all injured persons, and per occurrence limit for all property
damage resulting from the accident.
Automobile: Personal Auto/Business Auto - Liability Correct
Answers covers damages for bodily injury or property damage
, that an insured becomes legally responsible for because of an
auto accident
Automobile: Personal Auto/Business Auto - Medical Payments
Correct Answers provides protection for the named insured,
family members, and passengers in the named insured's auto for
injuries received in an accident, regardless of who was at fault.
not liability coverage for injuries sustained by passengers in
another auto involved in an accident with the insured
Automobile: Personal Auto/Business Auto - Physical Damage
Correct Answers pays for direct and accidental loss to the
named insured's covered auto or any non owned auto against
loss caused by collision and other than collision
Automobile: Personal Auto/Business Auto - Types of Auto -
Hired Correct Answers designates liability and/or physical
damage coverage only
Automobile: Personal Auto/Business Auto - Types of Auto -
Newly Acquired Autos Correct Answers if the newly acquired
auto replaces the one listed in the declarations, the new auto has
the broadest coverage provided for any vehicle already listed in
the declarations until the end of the policy period.
if the new auto does not replace one that is already insured,
coverage must be requested within 14 days after acquiring the
auto in order for coverage to apply from the date the vehicle was
acquired
Automobile: Personal Auto/Business Auto - Types of Auto -
Non owned Correct Answers used only for autos used in the
COMPLETE SOLUTIONS
Absolute Liability Correct Answers type of liability imposed by
law on those participating in certain activities that are
considered especially hazardous. may be held liable for the
damages of another, even though the individual was not
negligent (owners of pools and firearms)
Actual Cash Value (ACV) Correct Answers the cost to replace
an item of property at the time of loss, less depreciation. may be
used to determine the amount of reimbursement for a loss
Appraisal Correct Answers professional assessment of a
property's value. used to determine the value an item or
determine the extent of damage. insurance has the right to hire
an independent appraiser to asses cost of damage
Arbitration Correct Answers procedure in which an insurance
company and the insured or a vendor agree to settle a claim
dispute by accepting a decision made by a third party.
Automobile: Business Auto - Exclusions Correct Answers
business auto liability:
-expected intended injuries
-assumed under contract agreement
-for work-related injuries to employees
-for damage to property owned by/in custody of the insured
-damaged arising out of the movement of property
-completed operations
-pollution damage
,-assumed under a contract
-war
-covered autos used for racing/demolition/stunts
physical damage:
-sound reproducing/receiving equipment
-wear and tear, freezing, mechanical/electrical breakdown,
damage to tiers
-war/nuclear events
-covered autos used for racing/demolition/stunts, decrease in
value
Automobile: Business Auto - Garage Coverage Form Correct
Answers provides liability coverage, garage keepers coverage,
physical damage coverage. covers both auto and business
liability arising out of the ownership, maintenance, or use of
covered autos, and garage operations
Automobile: Business Auto - Individual Insured and Drive
Other Car Correct Answers commonly used when an employee
does not carry personal auto insurance because he/she is
furnished a company auto. Coverage under the endorsement
would come into play in the event the individual designated in
the endorsement (including his or her resident spouse) is driving
a nonowned auto for personal use.
Automobile: Business Auto - Types of Auto -
Transportation/Rental Reimbursement Expense Correct Answers
up to $20 a day with a max of $600 for transportation expenses
incurred by the insured because of physical damage losses to the
insured's covered auto and loss of use expenses for which the
,insured becomes legally responsible for because a non owned
vehicle
Automobile: Personal Auto/Business Auto - Liability - Bodily
Injury Correct Answers part of the insurance policy that pays
for the costs associated with injuries to the other person or
people involved. This coverage also provides a legal defense in
the event that you are sued for damages.
Automobile: Personal Auto/Business Auto - Liability -
Combined Single Limit Correct Answers a single dollar limit
that applies to any combination of bodily injury and property
damage liability claims
Automobile: Personal Auto/Business Auto - Liability - Property
Damage Correct Answers covers the cost of damages to
someone else's property after an accident the insured caused.
most commonly, the insured's property damage will pay out
when the insured is at fault for an accident that causes damage to
someone else's car
Automobile: Personal Auto/Business Auto - Liability - Split
Limits Correct Answers a provision of an insurance policy that
states different maximum dollar amounts the insurer will pay for
different components of a claim. three separate dollar amounts
apply to each accident: per person limit, per occurrence limit for
all injured persons, and per occurrence limit for all property
damage resulting from the accident.
Automobile: Personal Auto/Business Auto - Liability Correct
Answers covers damages for bodily injury or property damage
, that an insured becomes legally responsible for because of an
auto accident
Automobile: Personal Auto/Business Auto - Medical Payments
Correct Answers provides protection for the named insured,
family members, and passengers in the named insured's auto for
injuries received in an accident, regardless of who was at fault.
not liability coverage for injuries sustained by passengers in
another auto involved in an accident with the insured
Automobile: Personal Auto/Business Auto - Physical Damage
Correct Answers pays for direct and accidental loss to the
named insured's covered auto or any non owned auto against
loss caused by collision and other than collision
Automobile: Personal Auto/Business Auto - Types of Auto -
Hired Correct Answers designates liability and/or physical
damage coverage only
Automobile: Personal Auto/Business Auto - Types of Auto -
Newly Acquired Autos Correct Answers if the newly acquired
auto replaces the one listed in the declarations, the new auto has
the broadest coverage provided for any vehicle already listed in
the declarations until the end of the policy period.
if the new auto does not replace one that is already insured,
coverage must be requested within 14 days after acquiring the
auto in order for coverage to apply from the date the vehicle was
acquired
Automobile: Personal Auto/Business Auto - Types of Auto -
Non owned Correct Answers used only for autos used in the
