Personal Lines exam study prep (OH 11-43)
Absolute Liability - ANS -A type of liability that occurs due to extremely dangerous operations, such as the use of
explosives or working at extreme heights.
\Acceptance - ANS -the action of consenting to receive or undertake something offered
\accident - ANS -An unexpected happening that may result in injury, loss, or damage.
\Accident - ANS -An unexpected happening that may result in injury, loss, or damage.
\Actual Cash Value (ACV) - ANS -Cost to replace property with new property of like kind and quality less depreciation.
\Additional Coverages - ANS -are automatically included in property policies w/o additional premiums
\Admitted (Authorized) Insurer - ANS -is authorized by this State's Commissioner of Insurance to do business in this State.
It has received a Certificate of Authority to do business in this State.
\After the 60-day initial underwriting period, an auto policy may only be cancelled for certain reasons, such as? - ANS
-non-payment of premium, suspension or revocation of the driver's license of the named insured, and/or policy was
obtained through fraud.
\Aggregate Limit - ANS -The maximum amount an insurer will pay for all covered losses during the covered policy period.
\Agreed Value - ANS -A property policy with a provision agreed upon by the insurer and insured as to the amount of
insurance that represents a fair valuation for the property at the time the insurance is written.
\agreement - ANS -one must make an offer the other must accept the offer
\Alien Insurer - ANS -An insurer organized under the laws of any jurisdiction outside of the United States, whether or not it
is admitted to do business in this state.
\An insured purchase new furniture for $6000. At the time of the fire loss, it had depreciated $2000. The same furniture
will cost $7000 to replace. What is the actual cash value of the destroyed furniture? - ANS -$5000
\Ann has an automobile insured for $3,000 on a stated amount basis. The automobile is totally destroyed by an insured
peril and valued at $3,500 at the time of loss. The policy will pay - ANS -$3,000.
\Apparent Authority - ANS -Authority created when a producer exceeds expressed authority, and the insurer does nothing
to counter it.
\Arbitration - ANS -settling a dispute by agreeing to accept the decision of an impartial outsider
, \Arbitration - ANS -settling a dispute by agreeing to accept the decision of an impartial outsider
\Automatic Increase in Insurance Endorsement - ANS -Dwelling policy endorsement that provides an annual increase in
the Coverage A amount of 4%, 6%, or 8%. Also called the inflation guard endorsement
\Automobile limits of liability expressed as 25/50/10 mean - ANS -$25,000 per person bodily injury, $50,000 per
occurrence bodily injury, and $10,000 property damage each accident
**The first number is the most any one person can receive; the second number is the maximum the policy will pay out for
all of the injuries in an accident; the final number is the maximum the policy will pay out for all property damaged in an
accident.**
\Benjamin carries an automobile policy with Company A that has a single limit of $50,000. He borrows an auto from a
neighbor who carries an automobile policy with Company B that has a single limit of $100,000. While driving the borrowed
auto, Benjamin is involved in an at-fault accident in which a judgment of $125,000 is rendered against him. The loss will
be paid in what way (Company A/Company B)? - ANS -$25,000/$100,000
\Blanket Limit - ANS -Insures property located at more than one location OR more than one type of property at the same
location OR both.
\bodily injury liability - ANS -insurance that covers physical injuries caused by a vehicle accident for which you are
responsible
\Broad Form (HO-2) - ANS -an insurance policy that covers a large number of named perils. such as: fire or lightning,
windstorm or hail, explosion, riot or civil commotion, smoke, vandalism, weight of snow and ice, and HVAC issues.
\Broad Theft Coverage Endorsement - ANS -Dwelling Policy endorsement that covers theft, attempted theft and
vandalism, and malicious mischief resulting from theft; property is covered while it is on or off premises
\Broker - ANS -a licensed agent who negotiates insurance on behalf of the applicant
\burglary - ANS -entering a building forcibly & unlawfully with intent to commit a felony or to steal valuable property
\Cancellation - ANS -during the first 60 days of a policy you may cancel. must give a notice of 10 days for cancellation due
to non-payment of premium, and at least 20 days advanced for all other reasons
\collision - ANS -an instance of one moving object or person striking violently against another. single named peril
\Combined Single Limit - ANS -The most the policy will pay for all losses of all types resulting from any one occurrence,
regardless of other limits.
\common property exclusions - ANS -1. ordinance or law
Absolute Liability - ANS -A type of liability that occurs due to extremely dangerous operations, such as the use of
explosives or working at extreme heights.
\Acceptance - ANS -the action of consenting to receive or undertake something offered
\accident - ANS -An unexpected happening that may result in injury, loss, or damage.
\Accident - ANS -An unexpected happening that may result in injury, loss, or damage.
\Actual Cash Value (ACV) - ANS -Cost to replace property with new property of like kind and quality less depreciation.
\Additional Coverages - ANS -are automatically included in property policies w/o additional premiums
\Admitted (Authorized) Insurer - ANS -is authorized by this State's Commissioner of Insurance to do business in this State.
It has received a Certificate of Authority to do business in this State.
\After the 60-day initial underwriting period, an auto policy may only be cancelled for certain reasons, such as? - ANS
-non-payment of premium, suspension or revocation of the driver's license of the named insured, and/or policy was
obtained through fraud.
\Aggregate Limit - ANS -The maximum amount an insurer will pay for all covered losses during the covered policy period.
\Agreed Value - ANS -A property policy with a provision agreed upon by the insurer and insured as to the amount of
insurance that represents a fair valuation for the property at the time the insurance is written.
\agreement - ANS -one must make an offer the other must accept the offer
\Alien Insurer - ANS -An insurer organized under the laws of any jurisdiction outside of the United States, whether or not it
is admitted to do business in this state.
\An insured purchase new furniture for $6000. At the time of the fire loss, it had depreciated $2000. The same furniture
will cost $7000 to replace. What is the actual cash value of the destroyed furniture? - ANS -$5000
\Ann has an automobile insured for $3,000 on a stated amount basis. The automobile is totally destroyed by an insured
peril and valued at $3,500 at the time of loss. The policy will pay - ANS -$3,000.
\Apparent Authority - ANS -Authority created when a producer exceeds expressed authority, and the insurer does nothing
to counter it.
\Arbitration - ANS -settling a dispute by agreeing to accept the decision of an impartial outsider
, \Arbitration - ANS -settling a dispute by agreeing to accept the decision of an impartial outsider
\Automatic Increase in Insurance Endorsement - ANS -Dwelling policy endorsement that provides an annual increase in
the Coverage A amount of 4%, 6%, or 8%. Also called the inflation guard endorsement
\Automobile limits of liability expressed as 25/50/10 mean - ANS -$25,000 per person bodily injury, $50,000 per
occurrence bodily injury, and $10,000 property damage each accident
**The first number is the most any one person can receive; the second number is the maximum the policy will pay out for
all of the injuries in an accident; the final number is the maximum the policy will pay out for all property damaged in an
accident.**
\Benjamin carries an automobile policy with Company A that has a single limit of $50,000. He borrows an auto from a
neighbor who carries an automobile policy with Company B that has a single limit of $100,000. While driving the borrowed
auto, Benjamin is involved in an at-fault accident in which a judgment of $125,000 is rendered against him. The loss will
be paid in what way (Company A/Company B)? - ANS -$25,000/$100,000
\Blanket Limit - ANS -Insures property located at more than one location OR more than one type of property at the same
location OR both.
\bodily injury liability - ANS -insurance that covers physical injuries caused by a vehicle accident for which you are
responsible
\Broad Form (HO-2) - ANS -an insurance policy that covers a large number of named perils. such as: fire or lightning,
windstorm or hail, explosion, riot or civil commotion, smoke, vandalism, weight of snow and ice, and HVAC issues.
\Broad Theft Coverage Endorsement - ANS -Dwelling Policy endorsement that covers theft, attempted theft and
vandalism, and malicious mischief resulting from theft; property is covered while it is on or off premises
\Broker - ANS -a licensed agent who negotiates insurance on behalf of the applicant
\burglary - ANS -entering a building forcibly & unlawfully with intent to commit a felony or to steal valuable property
\Cancellation - ANS -during the first 60 days of a policy you may cancel. must give a notice of 10 days for cancellation due
to non-payment of premium, and at least 20 days advanced for all other reasons
\collision - ANS -an instance of one moving object or person striking violently against another. single named peril
\Combined Single Limit - ANS -The most the policy will pay for all losses of all types resulting from any one occurrence,
regardless of other limits.
\common property exclusions - ANS -1. ordinance or law
