Louisiana property and casualty insurance exam | Questions with 100% Correct Answers |
Updated &Verified | 2024-2025 | 100% Score
Adverse Selection - ✔✔lower or poorer risks more prone to losses than normal risks.
Aleatory Contract - ✔✔the consideration that is being exchanged is unequal or unrelated to the
consideration given by the other party.
Basic - ✔✔named peril coverage, the least coverage available. In dwelling policies it includes: fire,
lightning, removal, and internal explosion.
Broad - ✔✔named peril coverage, covering more named perils than the basic form. In dwelling coverage
it covers all perils under basic including EC and V&MM plus: damage by burglars (not theft); weight of
ice, snow or sleet; accidental discharge or overflow of water or steam; freezing of plumbing, heating,
a/c, or sprinkler systems; falling objects; artificially generated electrical current; and tearing apart,
cracking, burning, or bulging of a steam or water system.
Builder's risk - ✔✔used to insure buildings under construction.
Business income - ✔✔covers loss of income when a business has to suspend because of a direct loss.
Business income is covered over the time the operations are suspended while the building is being
repaired or replaced. It is calculated as the net income that would've been earned if the loss occurred
and the cost to continue operations including payroll.
Cancellation - ✔✔termination of a policy by either the insurer or insured before the expiration date.
Cargo - ✔✔what the ship is hauling.
Causes of Loss - ✔✔after choosing commercial property coverage for the type of property your business
needs covered, you then need to choose the causes of loss that will be covered. A business may choose
Basic, Broad, or Special cause of loss forms and the extra is Earthquake (volcanic eruption additional) -
that state the perils protected against.
, Cease & Desist - ✔✔an official legal document that will require an individual to stop doing something.
Certificate of Authority - ✔✔makes the insurer an admitted company and proves that the Department
of Insurance finds the company financially sound and structured well enough to meet the requirements
of the state insurance code to conduct insurance business in Louisiana.
Class Rating - ✔✔computing a rate for insurance that applies to all applicants in a certain risk class.
Collapse - ✔✔covers unexpected falling down or caving in of a building.
Collision - ✔✔collision coverage pays for direct and accidental loss due to upset or collision of the
vehicle with another object. Collision coverage would provide protection for an insured auto due to
collision with another vehicle, collision with another object such as a bridge or tree, and upset or
overturn of the vehicle subject to a deductible.
Common Carrier - ✔✔a carrier is a commercial organization that transports goods or passengers. A
carrier is classified as a common carrier when it dedicates its property to public use in such a manner
that its services are available to the public on a regular basis. Common carriers hold themselves out to
the public as engaged in the business of transporting persons or property from site to site for
compensation or a fee. Examples of common carriers include railroads, bus companies, trucking firms,
taxicab companies, airlines, and ferries.
Common Conditions - ✔✔conditions that apply to all coverage parts such as cancellation, changes,
inspections, examination of books and records, etc.
Common Declarations - ✔✔provides information as to who, what, when, where and how much. It will
include the insurance company name, the named insured, policy period, business description, coverage
parts, premium, and policy forms. All policies take effect on 12:01 AM at the mailing address of the
insured listed in the policy. It contains the list of 7 coverage parts followed by the appropriate premium
if there is coverage for the part, but no premium listed if the part is not included in the package.
Compulsory - ✔✔states with laws that require employers to provide worker's compensation insurance
under penalty of law.
Updated &Verified | 2024-2025 | 100% Score
Adverse Selection - ✔✔lower or poorer risks more prone to losses than normal risks.
Aleatory Contract - ✔✔the consideration that is being exchanged is unequal or unrelated to the
consideration given by the other party.
Basic - ✔✔named peril coverage, the least coverage available. In dwelling policies it includes: fire,
lightning, removal, and internal explosion.
Broad - ✔✔named peril coverage, covering more named perils than the basic form. In dwelling coverage
it covers all perils under basic including EC and V&MM plus: damage by burglars (not theft); weight of
ice, snow or sleet; accidental discharge or overflow of water or steam; freezing of plumbing, heating,
a/c, or sprinkler systems; falling objects; artificially generated electrical current; and tearing apart,
cracking, burning, or bulging of a steam or water system.
Builder's risk - ✔✔used to insure buildings under construction.
Business income - ✔✔covers loss of income when a business has to suspend because of a direct loss.
Business income is covered over the time the operations are suspended while the building is being
repaired or replaced. It is calculated as the net income that would've been earned if the loss occurred
and the cost to continue operations including payroll.
Cancellation - ✔✔termination of a policy by either the insurer or insured before the expiration date.
Cargo - ✔✔what the ship is hauling.
Causes of Loss - ✔✔after choosing commercial property coverage for the type of property your business
needs covered, you then need to choose the causes of loss that will be covered. A business may choose
Basic, Broad, or Special cause of loss forms and the extra is Earthquake (volcanic eruption additional) -
that state the perils protected against.
, Cease & Desist - ✔✔an official legal document that will require an individual to stop doing something.
Certificate of Authority - ✔✔makes the insurer an admitted company and proves that the Department
of Insurance finds the company financially sound and structured well enough to meet the requirements
of the state insurance code to conduct insurance business in Louisiana.
Class Rating - ✔✔computing a rate for insurance that applies to all applicants in a certain risk class.
Collapse - ✔✔covers unexpected falling down or caving in of a building.
Collision - ✔✔collision coverage pays for direct and accidental loss due to upset or collision of the
vehicle with another object. Collision coverage would provide protection for an insured auto due to
collision with another vehicle, collision with another object such as a bridge or tree, and upset or
overturn of the vehicle subject to a deductible.
Common Carrier - ✔✔a carrier is a commercial organization that transports goods or passengers. A
carrier is classified as a common carrier when it dedicates its property to public use in such a manner
that its services are available to the public on a regular basis. Common carriers hold themselves out to
the public as engaged in the business of transporting persons or property from site to site for
compensation or a fee. Examples of common carriers include railroads, bus companies, trucking firms,
taxicab companies, airlines, and ferries.
Common Conditions - ✔✔conditions that apply to all coverage parts such as cancellation, changes,
inspections, examination of books and records, etc.
Common Declarations - ✔✔provides information as to who, what, when, where and how much. It will
include the insurance company name, the named insured, policy period, business description, coverage
parts, premium, and policy forms. All policies take effect on 12:01 AM at the mailing address of the
insured listed in the policy. It contains the list of 7 coverage parts followed by the appropriate premium
if there is coverage for the part, but no premium listed if the part is not included in the package.
Compulsory - ✔✔states with laws that require employers to provide worker's compensation insurance
under penalty of law.
