North Carolina Property and Casualty
Exam Terms
Special Damages Correct Ans-all direct and specific expenses involved in a particular loss,
such as medical expenses, lost wages, funeral expenses, cost to replace and repair property
State insurance department Correct Ans-each state has an insurance department headed by an
official charged with the responsibility for controlling insurance matters within that state
Statutes of limitations Correct Ans-Certain types of lawsuits must be filed within a specified
time of the occurrence to be valid under the law
Stock Company (Types of Insurance Companies) Correct Ans-Sells stock to raise money to
operate the business, profits are returned to stock holders, not the insureds
Subrogation Correct Ans-The transfer of the right of recovery to someone else
Supplementary Payments Correct Ans-Payments made in addition to the policy's regular limit
of liability
-Defense Costs
-Expenses incurred in the investigation of a claim
-Premiums for certain types of bonds, such as bail bonds, appeal bonds, and release of
attachment bonds
,-First aid to others at the time of an accident
-reasonable expenses incurred by the insured at the company's request in the investigation or
defense of a claim
-Loss of earnings
-Prejudgment Interest
-Post judgment Interest
Tort Correct Ans-A civil wrong that violates the rights of another
Trespasser Correct Ans-On the premises without permission, either expressed or implied
Twisting Correct Ans-Twisting is a form of misrepresentation in which the agent convinces
the client to cancel already-existing insurance and buy another policy from the agent, to the
detriment of the insured. Twisting is illegal
Underwriting sources other than the application Correct Ans-Inspection services
Government Bureaus
Insurance bureaus
Financial information services
Previous insurers
Company's own claim files
, Underwriting Correct Ans-The process of selecting certain types of risks and rejecting others
so the insurance company will have a book of business that will produce the companies desired
results
Unearned Premium Correct Ans-Any premium that is not yet "used up" during the policy
period
Unfair Discrimination Correct Ans-Agents can be in violation of the law if they unfairly
discriminate against insured's, giving a lower or higher rate than another in identical
circumstances
Unilateral (Contracts) Correct Ans-One Sided; Only the insurance company is legally bound
to perform its part of the agreement
Valuation (How losses will be paid) Correct Ans-Insured can collect the lessor of ;
Insurable interest
Policy limits
Actual cash value
Cost to repair
Replacement Cost
Valued or agreed amount contract Correct Ans-Contracts written for a specified amount
Exam Terms
Special Damages Correct Ans-all direct and specific expenses involved in a particular loss,
such as medical expenses, lost wages, funeral expenses, cost to replace and repair property
State insurance department Correct Ans-each state has an insurance department headed by an
official charged with the responsibility for controlling insurance matters within that state
Statutes of limitations Correct Ans-Certain types of lawsuits must be filed within a specified
time of the occurrence to be valid under the law
Stock Company (Types of Insurance Companies) Correct Ans-Sells stock to raise money to
operate the business, profits are returned to stock holders, not the insureds
Subrogation Correct Ans-The transfer of the right of recovery to someone else
Supplementary Payments Correct Ans-Payments made in addition to the policy's regular limit
of liability
-Defense Costs
-Expenses incurred in the investigation of a claim
-Premiums for certain types of bonds, such as bail bonds, appeal bonds, and release of
attachment bonds
,-First aid to others at the time of an accident
-reasonable expenses incurred by the insured at the company's request in the investigation or
defense of a claim
-Loss of earnings
-Prejudgment Interest
-Post judgment Interest
Tort Correct Ans-A civil wrong that violates the rights of another
Trespasser Correct Ans-On the premises without permission, either expressed or implied
Twisting Correct Ans-Twisting is a form of misrepresentation in which the agent convinces
the client to cancel already-existing insurance and buy another policy from the agent, to the
detriment of the insured. Twisting is illegal
Underwriting sources other than the application Correct Ans-Inspection services
Government Bureaus
Insurance bureaus
Financial information services
Previous insurers
Company's own claim files
, Underwriting Correct Ans-The process of selecting certain types of risks and rejecting others
so the insurance company will have a book of business that will produce the companies desired
results
Unearned Premium Correct Ans-Any premium that is not yet "used up" during the policy
period
Unfair Discrimination Correct Ans-Agents can be in violation of the law if they unfairly
discriminate against insured's, giving a lower or higher rate than another in identical
circumstances
Unilateral (Contracts) Correct Ans-One Sided; Only the insurance company is legally bound
to perform its part of the agreement
Valuation (How losses will be paid) Correct Ans-Insured can collect the lessor of ;
Insurable interest
Policy limits
Actual cash value
Cost to repair
Replacement Cost
Valued or agreed amount contract Correct Ans-Contracts written for a specified amount
