D 363 INSURANCE: PROPERTY & CASUALTY
EXAM | COMPREHENSIVE EXAM PREP,
PRACTICE QUESTIONS, CORRECT ANSWERS
AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Accident A sudden and unexpected event which occurs at a specific time and place.
Actual Cash Value (ACV) The cost to replace an item of property at the time of loss, less an allowance for
depreciation. Often used to determine amount of reimbursement for a loss.
Additional Living Expense A coverage designed to reimburse the insured for an increase in living expenses
necessitated by loss to the dwelling. This indirect loss must be the result of a direct loss
by a covered peril.
Adhesion A characteristic of insurance policies that means the contract is prepared by the insurer
and is non-negotiable or "one-sided".
Admitted Company A company which meets the state insurance department's standards and is authorized to
do business in the state.
Agent The state-licensed professional who represents the insurance company in the sale and
servicing of insurance. The direct link between the insurance company and the
policyholder.
Aggregate Limit A type of policy limit found in liability policies which limits coverage to a specified total
amount for all losses occurring within the policy period.
Aleatory A characteristic of insurance contracts, meaning a contract in 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.
, Allied Lines Used to insure additional types of losses to property and sold in conjunction with fire
insurance.
All-Risk A term used to indicate that property is covered against all perils except those
specifically excluded.
Apportionment A method determining how much will be contributed by each company toward a loss
covered under more than one policy.
Appurtenant Structures A structure belonging to the insured and associated with the insured property. (another
name for "other structures")
Appraisal Clause A clause which provides a specific procedure when the insured and the insurer are in
disagreement regarding the amount of a loss.
Binder An acknowledgment (or receipt), usually from the agent, that insurance applied for is in
force regardless of any premium settlement.
Blanket Position Bond Fidelity bond which specifies a single limit of liability applicable to each employee
involved in a loss.
Bodily Injury __________ coverage pays for injuries, sickness, disease, or required care for death that the
policyholder is found legally liable for.
Boiler and Machinery Policy Insurance which covers the insured against loss (liability and physical damage) arising out
of the use of scheduled commercial equipment.
Broker An individual who represents the prospect, instead of the insurance company, in the
insurance transaction. Frequently involved in the placement of very large or unusual risks.
Burglary The unlawful taking of property by forced entry into the premises while the premises is
closed for business (must be visible evidence of forced entry or exit).
Business Interruption Insurance A Time-Element coverage which reimburses the insured for loss of earnings due to the
inability to operate caused by a covered peril.
EXAM | COMPREHENSIVE EXAM PREP,
PRACTICE QUESTIONS, CORRECT ANSWERS
AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Accident A sudden and unexpected event which occurs at a specific time and place.
Actual Cash Value (ACV) The cost to replace an item of property at the time of loss, less an allowance for
depreciation. Often used to determine amount of reimbursement for a loss.
Additional Living Expense A coverage designed to reimburse the insured for an increase in living expenses
necessitated by loss to the dwelling. This indirect loss must be the result of a direct loss
by a covered peril.
Adhesion A characteristic of insurance policies that means the contract is prepared by the insurer
and is non-negotiable or "one-sided".
Admitted Company A company which meets the state insurance department's standards and is authorized to
do business in the state.
Agent The state-licensed professional who represents the insurance company in the sale and
servicing of insurance. The direct link between the insurance company and the
policyholder.
Aggregate Limit A type of policy limit found in liability policies which limits coverage to a specified total
amount for all losses occurring within the policy period.
Aleatory A characteristic of insurance contracts, meaning a contract in 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.
, Allied Lines Used to insure additional types of losses to property and sold in conjunction with fire
insurance.
All-Risk A term used to indicate that property is covered against all perils except those
specifically excluded.
Apportionment A method determining how much will be contributed by each company toward a loss
covered under more than one policy.
Appurtenant Structures A structure belonging to the insured and associated with the insured property. (another
name for "other structures")
Appraisal Clause A clause which provides a specific procedure when the insured and the insurer are in
disagreement regarding the amount of a loss.
Binder An acknowledgment (or receipt), usually from the agent, that insurance applied for is in
force regardless of any premium settlement.
Blanket Position Bond Fidelity bond which specifies a single limit of liability applicable to each employee
involved in a loss.
Bodily Injury __________ coverage pays for injuries, sickness, disease, or required care for death that the
policyholder is found legally liable for.
Boiler and Machinery Policy Insurance which covers the insured against loss (liability and physical damage) arising out
of the use of scheduled commercial equipment.
Broker An individual who represents the prospect, instead of the insurance company, in the
insurance transaction. Frequently involved in the placement of very large or unusual risks.
Burglary The unlawful taking of property by forced entry into the premises while the premises is
closed for business (must be visible evidence of forced entry or exit).
Business Interruption Insurance A Time-Element coverage which reimburses the insured for loss of earnings due to the
inability to operate caused by a covered peril.
