WA SURPLUS LINES BROKER EXAM
COMPREHENSIVE TEST PAPER QUESTIONS
AND SOLUTIONS GRADED A+
◉ Occurance.
Answer: Includes those losses caused by continuous or repeated
exposure to conditions resulting in injury or damage to property
that is neither intended nor expected.
◉ Consequential loss.
Answer: Also known as an indirect loss, is a second financial loss
caused by a covered direct loss.
◉ Nonconcurrency.
Answer: Refers to other insurance written on the same risk, but not
on the same coverage basis.
◉ Negligence.
Answer: Four essential elements: Duty, breach, injury, and unbroken
chain.
◉ Stated Amount.
,Answer: The value of the insured property is determined at the time
the policy is written. In the event of a loss, that amount is paid
without regard to any COINSURANCE provision. However, if the loss
is less than total, the insurer has salvage rights with the insured
having first right of refusal of the salvage.
◉ Personal Property.
Answer: Property that is moveable
◉ Real Property.
Answer: Property that is non-moveable
◉ Components.
Answer: Factors that determine rates, including loss reserves, loss
adjusting expenses, operating expenses and profits.
◉ Comparative Negligence.
Answer: Many states, by statute, require that damage be
apportioned based upon the degree of negligence of each party in an
accident.
◉ Assignment.
Answer: The transfer of a legal right or interest in an insurance
policy. In property and casualty insurance, assignments of policies
, are usually valid only with the prior written consent of the insurer.
Example: transferring a policy to a friend who will be taking over
renters insurance when you move out.
◉ Additional Coverage.
Answer: Provides an additional amount of coverage for specific loss
expense, at no additional premium.
◉ Surplus Lines.
Answer: Insurance that is not available in the regular market place
from admitted insurers. Usually involves insurance of high risk
individuals.
◉ Defamation.
Answer: Statements that are false as to the financial condition of any
insurer
◉ Per occurrence (accident) limit.
Answer: The limit s expressed in an auto policy is the limit per
accident. After payment of a claim, the limits are restored to the
original amount for the next accident.
◉ Proximate cause.
COMPREHENSIVE TEST PAPER QUESTIONS
AND SOLUTIONS GRADED A+
◉ Occurance.
Answer: Includes those losses caused by continuous or repeated
exposure to conditions resulting in injury or damage to property
that is neither intended nor expected.
◉ Consequential loss.
Answer: Also known as an indirect loss, is a second financial loss
caused by a covered direct loss.
◉ Nonconcurrency.
Answer: Refers to other insurance written on the same risk, but not
on the same coverage basis.
◉ Negligence.
Answer: Four essential elements: Duty, breach, injury, and unbroken
chain.
◉ Stated Amount.
,Answer: The value of the insured property is determined at the time
the policy is written. In the event of a loss, that amount is paid
without regard to any COINSURANCE provision. However, if the loss
is less than total, the insurer has salvage rights with the insured
having first right of refusal of the salvage.
◉ Personal Property.
Answer: Property that is moveable
◉ Real Property.
Answer: Property that is non-moveable
◉ Components.
Answer: Factors that determine rates, including loss reserves, loss
adjusting expenses, operating expenses and profits.
◉ Comparative Negligence.
Answer: Many states, by statute, require that damage be
apportioned based upon the degree of negligence of each party in an
accident.
◉ Assignment.
Answer: The transfer of a legal right or interest in an insurance
policy. In property and casualty insurance, assignments of policies
, are usually valid only with the prior written consent of the insurer.
Example: transferring a policy to a friend who will be taking over
renters insurance when you move out.
◉ Additional Coverage.
Answer: Provides an additional amount of coverage for specific loss
expense, at no additional premium.
◉ Surplus Lines.
Answer: Insurance that is not available in the regular market place
from admitted insurers. Usually involves insurance of high risk
individuals.
◉ Defamation.
Answer: Statements that are false as to the financial condition of any
insurer
◉ Per occurrence (accident) limit.
Answer: The limit s expressed in an auto policy is the limit per
accident. After payment of a claim, the limits are restored to the
original amount for the next accident.
◉ Proximate cause.
