Property & Casualty - PA - Basics correctly answered graded A+ 2024

Property & Casualty - PA - Basics Property Insurance - correct answer 2 party contract. Casualty Insurance - correct answer 3rd party contract. Liability. Insurable Interest - correct answer Financial someone has in someone or something. Required for coverage. Must exist AT THE TIME OF LOSS. Underwriting - correct answer Gathers information. Issue policy, decide on rates, fees and credits, may change coverage in order to issue, may reject a policy completely. GOAL = avoid adverse selection. Rates - correct answer Objective = establish price to cover claims. Rate = price per unit. Premium = rate per unit x's number of units. 3 Types: judgment, manual & merit. Rates - Judgment - correct answer Used for commercial policies only. Non-standard risks. Rates - Manual (Class) - correct answer For those with similar characteristics are put into classes. Those classes are rated and everyone in that class is charged the same according to their risk etc. Rates - Merit - correct answer Based on individual loss history. Experience and Retrospective (loss history) rating is used. WC policies. Considers characteristics. Hazards - correct answer Increase possibility of loss. 3Types: Physical - structural, Moral - character flaw, Moral - careless. Peril - correct answer Causes of loss. Peril - Named / Open - correct answer Named - listed on the policy. Coverage provided to those listed. Open - All perils are covered UNLESS they are listed.