SC P&C Insurance Exam Study Guide Latest 2022 Graded A

SC P&C Insurance Exam Study Guide Latest 2022 Graded A Abandonment the abdication of insured property into the hands of another, or into the possession of no one in particular Absolute Liability Liability that arises from an extremely dangerous situation. Often found in cases involving explosives. Also known as "strict" liability. For example, you are absolutely liable if you keep a wild animal as a pet. Accident an unplanned, unforseen event which occurs suddenly and at a specific place Actual Cash Value the required amount to pay damages for property loss, which is calculated based on the property's current replacement value minus depreciation Additional Coverage a provision in an insurance policy that allows for more coverage for a specific loss expense without an increase in premium Additional Insureds individuals or business that are not named as insured on the decleration page, butr are protected by the policy, usually in regard to a specific interest Adhesion A contract offered on a "take-it-or-leave-it" basis by an insurer, in which the insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured. Admitted Insurer An insurer to which a state insurance department has granted a license to do business within that state. Adverse Selection In general, the tendency for people with the greatest probability of loss to be the ones most likely to purchase insurance. Agent an individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of an insurer Aggregate Limit the maximum amount an insurer will pay for all covered losses during the covered policy period Agreed Value A property policy with a provision agreed upon by the insurer and insured as to the amount of insurance that represents a fair valuation for the property at the time the insurance is written. Aleatory A contract in which participating parties exchange unequal amounts. the amount the insured will pay in premiums is unequal to the amount the insurer will pay in the event of a loss. Alien Insurer an insurance company that is incorporated outside the U.S. Apparent Authority The appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created. Appraisal an assesment of property to determine either the correct amount of insurance to be written or the amount of loss to be paid Arbitration A process, agreed to by parties to a dispute in lieu of going to court, by which a neutral person or body makes a binding decision Assignment the transfer of legal right or interest in an insurance policy, in P&C ususally only valid with prior written consent of the insurer Authorized Insurer An insurance company that has qualified and received a Certificate of Authority from the Department of Insurance to transact insurance in the state. Auto a land motor vehicle, trailer or semi-trailer designed for use on public roads Avoidance A method of dealing with risk by deliberately keeping away from it (e.g. if a person wanted to avoid the risk of being killed in an airplane crash, he/she might choose never to fly in a plane). Bailee One who holds the personal property of another for a specific purpose. Beneficiary the one who recieves the proceeds from an insurance policy Binder A temporary insurance contract that forms an oral or wirtten agreement between the insurance company and the customer. Blanket Bond a type of bond that covers losses caused by dishonest employees Blanket Insurance A single property insurance policy that provides coverage for multiple classes of property at one location, or provides coverage for one or more classes of property at multiple locations. Bodily Injury Liability Insurance that protect