ExamFx Flashcards: Property and Casualty Insurance Terms and Provisions Questions With Complete Solutions

What is burglary? correct answer: The forced entry into another's premises with felonious intent. Under absolute liability, does an injured party need to prove negligence? correct answer: No. Absolute liability exists when a condition or conduct is inherently dangerous, so proof of negligence is not required. What term defines exact direct and uninterrupted cause of loss? correct answer: Proximate Cause What is additional coverage in an insurance policy correct answer: A provision that adds more coverage for a specific loss at no additional premium What type of limits of liability has the limits separately stated for different coverages? correct answer: Split limits Both robbery and burglary can be considered what? correct answer: theft What are policy limits correct answer: The maximum amount an insured may collect for a loss under the terms of the policy What are an insurer's obligations in property and casualty insurance? correct answer: Be fair in underwriting, and pay for covered losses Who is an insured in property and casualty insurance? correct answer: Anyone covered under the policy, even if not specifically named (Insurance carried/Insurance required) x Loss amount = correct answer: Loss payment