CPCU 553 Exam Questions and Answers | 100% Correct| 2024 Updated

CPCU 553 Exam Questions and Answers | 100% Correct| 2024 Updated Special Damages - Answer️️ -form of compensatory damages for specific, identifiable losses Type of risk transfer - Answer️️ -Insurance; Hold Harmless Agreements; Hedging Unemployment Compensation Program - Answer️️ -sponsored by all states; 2/3 of all previous income Six approaches to compensation of auto victimes - Answer️️ -Tort Liability; Financial Responsibility Laws; Compulsory Insurance Laws; Uninsured Motorists Coverage; Underinsured Motorists Coverage; No-Fault Laws Financial Responsibility Laws - Answer️️ -Required to show proof after accident; failure to do so results in license suspensions Compulsory Insurance Laws - Answer️️ -Require to hold minimum level of insurance before registering vehicle; prior to accident No pay no play laws - Answer️️ -In states with compulsory insurance laws; states that prohibit uninsured drivers from initiating lawsuits Unsatisfied Judgement Funds - Answer️️ -fund for source of recovery when at fault motorist is unable to pay; limited to minimum insurance requirement Uninsured + Underinsured - Answer️️ -cannot collect both; negligent driver must be responsible Underinsured Monetary Limits Trigger - Answer️️ -Policy pays when insurance that the negligent driver carriers are lower than the injured parties stated underinsured limit Underinsured Damages Trigger - Answer️️ -Policy pays when the insurance that the negligent driver carriers are lower than injured parties damages "Personal Injury Protection" - Answer️️ -included on an auto policy with no-fault insurance. Covers victim on first party basis regardless of fault Three Types of No-Fault Laws - Answer️️ -Modified No-Fault Plan, Add-On Plan, Choice No-Fault Plan Modified No Fault Plan - Answer️️ -Can collect from PIP but also sue in some scenarios (monetary or verbal threshold) Add-on No Fault Plan - Answer️️ -Offers PIP but does not place any restriction on right to sue negligent party; optional Choice No Fault Plan - Answer️️ -can choose Add-On (more $$) or Modified Automobile Insurance Plan - Answer️️ -assigned risk plan; most states have to insure high risk drivers on proportional basis. Must prove cannot obtain auto insurance within 60 days Joint Underwriting Associations (JUAs) - Answer️️ -Similar to assigned risk plan but assign servicing insurers to handle the rates and