Casualty Insurance Basics
When a parent is required to pay for damages caused by his or her children, this is an example of -
✔✔ correct answer vicarious liability
When an insurance policy does not offer a continuation or replacement at its expiration date, it is
considered a - ✔✔ correct answer nonrenewal
All of the following are found in the declarations section of a policy: - ✔✔ correct answer policy
premiums, name of the insured, limits of insurance
When a direct chain of events resulting from a negligent act causes injury or damage, that act is
considered to be - ✔✔ correct answer the proximate cause
The transfer of an insured's right to seek damages from a negligent party to the insurer is found in
which of the following clauses? - ✔✔ correct answer subrogation
The policy provision found in property insurance policies that prevents the insured from collecting
twice for the same loss is called - ✔✔ correct answer subrogation
What are some of the primary elements considered in establishing negligence? - ✔✔ correct answer
legal duty; standard of care; proximate cause
What provision in a property policy applies when the insurer broadens coverage but does not
increase the premium? - ✔✔ correct answer liberalization clause
The section of an insurance policy that details what perils are not insured against and what persons
are not insured is known as the - ✔✔ correct answer exclusions
Rates that are established based on the similarities of the risk with other risks are known as - ✔✔
correct answer manual rates
Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by
an insured to protect damaged property from further loss, or defense expenses? - ✔✔ correct
answer additional coverage
, Casualty Insurance Basics
All of the following statements describe the concept of strict liability: - ✔✔ correct answer it is
applied in product liability cases; claimants may needs to provide proof that a product defect caused
an injury; it is imposed regardless of fault
What type of compensatory damages will pay for pain and suffering and disfigurement? - ✔✔
correct answer general
When real property insured under a fire policy is totally destroyed by fire, what condition would
prevent the Nebraska valued policy law from being applied to the loss settlement? - ✔✔ correct
answer the fire was determined to be an arson by the insured
The part of a property policy that shows the amount of insurance, premium, and policy term is the -
✔✔ correct answer declarations
What provision requires that the insured protects the damaged property from further damage,
cooperates with the insurer in settling the loss, and submits to the insurer signed proof of loss within
a specified period of time? - ✔✔ correct answer duties after loss
Which of the following lists all the required elements for establishing a charge of negligence? - ✔✔
correct answer legal duty owed, breach of legal duty owed, proximate cause, damages
An insured is driving her car through a residential area when she loses control and crashes into a
neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability
policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and
property damage resulting from one accident. Which type of limit of liability does the insured have? -
✔✔ correct answer combined single
Persons covered under an insurance policy, whether named or not, are known as the - ✔✔ correct
answer insured
Which of the following terms describes the concept of disrupting the chain of events? - ✔✔ correct
answer intervening cause
The part of the insurance contract that describes the covered perils and the nature of coverage of
the contractual agreement between the insurer and the insured is called the - ✔✔ correct answer
insuring agreement
When a parent is required to pay for damages caused by his or her children, this is an example of -
✔✔ correct answer vicarious liability
When an insurance policy does not offer a continuation or replacement at its expiration date, it is
considered a - ✔✔ correct answer nonrenewal
All of the following are found in the declarations section of a policy: - ✔✔ correct answer policy
premiums, name of the insured, limits of insurance
When a direct chain of events resulting from a negligent act causes injury or damage, that act is
considered to be - ✔✔ correct answer the proximate cause
The transfer of an insured's right to seek damages from a negligent party to the insurer is found in
which of the following clauses? - ✔✔ correct answer subrogation
The policy provision found in property insurance policies that prevents the insured from collecting
twice for the same loss is called - ✔✔ correct answer subrogation
What are some of the primary elements considered in establishing negligence? - ✔✔ correct answer
legal duty; standard of care; proximate cause
What provision in a property policy applies when the insurer broadens coverage but does not
increase the premium? - ✔✔ correct answer liberalization clause
The section of an insurance policy that details what perils are not insured against and what persons
are not insured is known as the - ✔✔ correct answer exclusions
Rates that are established based on the similarities of the risk with other risks are known as - ✔✔
correct answer manual rates
Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by
an insured to protect damaged property from further loss, or defense expenses? - ✔✔ correct
answer additional coverage
, Casualty Insurance Basics
All of the following statements describe the concept of strict liability: - ✔✔ correct answer it is
applied in product liability cases; claimants may needs to provide proof that a product defect caused
an injury; it is imposed regardless of fault
What type of compensatory damages will pay for pain and suffering and disfigurement? - ✔✔
correct answer general
When real property insured under a fire policy is totally destroyed by fire, what condition would
prevent the Nebraska valued policy law from being applied to the loss settlement? - ✔✔ correct
answer the fire was determined to be an arson by the insured
The part of a property policy that shows the amount of insurance, premium, and policy term is the -
✔✔ correct answer declarations
What provision requires that the insured protects the damaged property from further damage,
cooperates with the insurer in settling the loss, and submits to the insurer signed proof of loss within
a specified period of time? - ✔✔ correct answer duties after loss
Which of the following lists all the required elements for establishing a charge of negligence? - ✔✔
correct answer legal duty owed, breach of legal duty owed, proximate cause, damages
An insured is driving her car through a residential area when she loses control and crashes into a
neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability
policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and
property damage resulting from one accident. Which type of limit of liability does the insured have? -
✔✔ correct answer combined single
Persons covered under an insurance policy, whether named or not, are known as the - ✔✔ correct
answer insured
Which of the following terms describes the concept of disrupting the chain of events? - ✔✔ correct
answer intervening cause
The part of the insurance contract that describes the covered perils and the nature of coverage of
the contractual agreement between the insurer and the insured is called the - ✔✔ correct answer
insuring agreement
