COMPREHENSIVE EXAM 2026
◉ Reinsurance agreement where the insurers involved will pay
claims in direct relationship with the % of the risk that they are
insuring. Answer: Quota Share
◉ Sharing the cost of replacement. Answer: Risk Sharing
◉ A legal action filed by one or more persons on behalf of
themselves and others having an identical interest in the alleged
wrongdoing. Answer: Class-Action
◉ A specific risk or cause of loss covered by an insurance policy,
such as fire, windstorm, flood, theft, etc.. Answer: Peril
◉ Dangers in a store, warehouse, or office; circumstances of risks
and perils determine who is responsible for _____. Answer: Premises
Liability
◉ A loss or risk the policy doesn't cover. Answer: Exclusions
,◉ Technique used to transfer the risk of a person, business, or
organization in another through the use of a two-party contract.
Answer: Insurance
◉ A legal two-party document describing the relationship between
the insured and the insurance company. Answer: Indemnity Contract
◉ Legal document that makes some person responsible for damages
their actions or products cause regardless of any fault on their part.
Answer: Strict Liabilty
◉ The intention to withhold relative information about the risk from
the insurance company. Answer: Concealment
◉ A subset of the claims function whereby suspicious losses are
investigated separately from the normal claims adjusters' activities.
Answer: Special Investigations Unit
◉ An insurer takes no action upon realizing material changes in a
contract. Answer: Implied Waiver
◉ Acts committed without negligence but result in damages.
Answer: Intentional Tort
, ◉ Willful and illegal sinking of a ship at sea or its cargo. Answer:
barratry
◉ Covers physical damage as well as liability and tends to be very
broad in coverage. Answer: Commercial Inland Marine
◉ Single insurance for only one kind of property at only one location
of an insured. Answer: Specific Coverage
◉ Legislative Acts or Laws. Answer: Statutes
◉ The insurance company to which the risk is transferred to by the
contract. Answer: Second Party
◉ Hazards on private property that might attract trespassing such as
swimming pools or trampolines. Answer: Attractive Nuisance
◉ An approximate calculation of amount, extent, quality, magnitude,
position, degree or worth of something. Answer: Estimages
◉ Insurance company assesses, mitigates, and monitors the items of
risk that potential customers want to insure. Answer: Risk
management