1 | Page
Insurance: Property & Casualty
Questions and Correct Answers/ Latest
Update / Already Graded
Accident
Ans: A sudden and unexpected event which occurs at a specific time
and place.
Actual Cash Value (ACV)
Ans: The cost to replace an item of property at the time of loss, less an
allowance for depreciation. Often used to determine amount of
reimbursement for a loss.
Additional Living Expense
Ans: A coverage designed to reimburse the insured for an increase in
living expenses necessitated by loss to the dwelling. This indirect loss must
be the result of a direct loss by a covered peril.
,2 | Page
Adhesion
Ans: A characteristic of insurance policies that means the contract is
prepared by the insurer and is non-negotiable or "one-sided".
Admitted Company
Ans: A company which meets the state insurance department's
standards and is authorized to do business in the state.
Agent
Ans: The state-licensed professional who represents the insurance
company in the sale and servicing of insurance. The direct link between
the insurance company and the policyholder.
Aggregate Limit
Ans: A type of policy limit found in liability policies which limits coverage
to a specified total amount for all losses occurring within the policy period.
,3 | Page
Aleatory
Ans: A characteristic of insurance contracts, meaning a contract in
which equal value is not given by both parties to the contract.
Alien Company
Ans: An insurance company incorporated in a country other than the
United States.
Allied Lines
Ans: Used to insure additional types of losses to property and sold in
conjunction with fire insurance.
All-Risk
Ans: A term used to indicate that property is covered against all perils
except those specifically excluded.
Apportionment
, 4 | Page
Ans: A method determining how much will be contributed by each
company toward a loss covered under more than one policy.
Appurtenant Structures
Ans: A structure belonging to the insured and associated with the insured
property. (another name for "other structures")
Appraisal Clause
Ans: A clause which provides a specific procedure when the insured and
the insurer are in disagreement regarding the amount of a loss.
Binder
Ans: An acknowledgment (or receipt), usually from the agent, that
insurance applied for is in force regardless of any premium settlement.
Blanket Position Bond
Insurance: Property & Casualty
Questions and Correct Answers/ Latest
Update / Already Graded
Accident
Ans: A sudden and unexpected event which occurs at a specific time
and place.
Actual Cash Value (ACV)
Ans: The cost to replace an item of property at the time of loss, less an
allowance for depreciation. Often used to determine amount of
reimbursement for a loss.
Additional Living Expense
Ans: A coverage designed to reimburse the insured for an increase in
living expenses necessitated by loss to the dwelling. This indirect loss must
be the result of a direct loss by a covered peril.
,2 | Page
Adhesion
Ans: A characteristic of insurance policies that means the contract is
prepared by the insurer and is non-negotiable or "one-sided".
Admitted Company
Ans: A company which meets the state insurance department's
standards and is authorized to do business in the state.
Agent
Ans: The state-licensed professional who represents the insurance
company in the sale and servicing of insurance. The direct link between
the insurance company and the policyholder.
Aggregate Limit
Ans: A type of policy limit found in liability policies which limits coverage
to a specified total amount for all losses occurring within the policy period.
,3 | Page
Aleatory
Ans: A characteristic of insurance contracts, meaning a contract in
which equal value is not given by both parties to the contract.
Alien Company
Ans: An insurance company incorporated in a country other than the
United States.
Allied Lines
Ans: Used to insure additional types of losses to property and sold in
conjunction with fire insurance.
All-Risk
Ans: A term used to indicate that property is covered against all perils
except those specifically excluded.
Apportionment
, 4 | Page
Ans: A method determining how much will be contributed by each
company toward a loss covered under more than one policy.
Appurtenant Structures
Ans: A structure belonging to the insured and associated with the insured
property. (another name for "other structures")
Appraisal Clause
Ans: A clause which provides a specific procedure when the insured and
the insurer are in disagreement regarding the amount of a loss.
Binder
Ans: An acknowledgment (or receipt), usually from the agent, that
insurance applied for is in force regardless of any premium settlement.
Blanket Position Bond
