Property And Casualty Insurance Exam Preparation Test Bank With Correct Answers

PROPERTY AND CASUALTY INSURANCE
EXAM PREPARATION TEST BANK WITH
CORRECT ANSWERS

●● Casualty/Liability Insurance
Answer: - Protect the insured when it is found legally liable for
negligent acts or omissions that cause injury or property damage to
others
- Pays the 'other guy', Third Party Losses
- Second party is insurer


●● Policy Structure
Answer: DICEE:
Declarations
Insuring agreements
Conditions
Endorsement and additional supplementary coverages
Exclusions


●● Declarations
Answer: - Information relative to who, what, when and where is on the
first page of the policy

, - Name of insured(s), a current address, a legal description of the insured
property, the policy deductibles, and the term of the coverage
- Used to help determine premium cost of policy


●● Insuring Agreement
Answer: - Summarizes the major promises of the insurer and states what
is covered
- Describes covered perils or risks assumed by the insurer and makes
reference to the contractual agreement between the insurer and insured


●● Conditions
Answer: - States the policy provisions, rules of conduct, duties, and
obligations required for coverage
- If insured does not adhere, insurer may deny coverage or a claim


●● Endorsements
Answer: - Add, modify, or take away coverage
- Attached to the policy and is part of the legal contract


●● Exclusions
Answer: - Describing property, perils, hazards, or losses arising from
specific causes which are not covered by the policy