Wa State Property & Casualty State Exam

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WA STATE PROPERTY & CASUALTY STATE EXAM

Assignmentvt-vtanswer--
Thevttransfervtofvtavtpolicyvttovtanothervtparty.vtOftenvtdonevtwhenvtcommercialvtpropertyvtisvtsoldvttovtavtnewvtowner.

Buildingvt&vtPersonalvtPropertyvt(BPP)vt-vtanswer--Thevtcommercialvtpropertyvtpolicyvtforvtlargervtbusinesses.

BusinessvtIncomevtPolicyvt-vtanswer--Avtcommercialvtpolicyvtcoveringvtthevtindirectvtlossvtofvtincomevtfollowingvtavtloss.

Cancellationvt-vtanswer--Terminationvtofvtavtpolicyvtduringvtthevtpolicyvtperiod.

CasualtyvtInsurancevt-vtanswer--
AvtbroadvttermvtwhichvtincludesvtallvtofvtthevtpolicyvttypesvtthatvtmayvtbevtsoldvtwithvtavtCasualtyvtLicensevt-
vtinvtmostvtstatesvtthisvtincludesvtauto,vtliability,vtworkvtcomp,vtcommercialvtcrime,vtandvtsuretyvtbonds.



ClaimsvtMadevtFormvt-vtanswer--
Avtpolicyvtthatvtpaysvtaccordingvttovtthevtcoveragevtinvteffectvtinvtthevtyearvtthevtclaimvtisvtmadevtrathervtthanvtaccordingvttov
evtcoveragevtinvteffectvtatvtthevttimevtofvtthevtloss.vtProfessionalvtLiabilityvtpoliciesvtarevtusuallyvtwrittenvtonvtavtClaimsvtMad
basis,vtwhilevtothervtLiabilityvtPoliciesvtarevtwrittenvtonvtanvtOccurrencevtBasis.

CoinsurancevtClausevt-vtanswer--
ThevtpolicyvtprovisionvtwhichvtsatesvtthatvtifvtthevtInsuredvthasvtlessvtthanvtavtspecifiedvtamountvtofvtcoveragevt(usuallyvt80
),vtthevtInsurervtwillvtnotvtfullyvtcovervtavtpartialvtloss.

CommercialvtPackagevtPolicyvt(CPP)vt-vtanswer--Avtbundlingvtofvtcommercialvtpolicies

CompetentvtPartyvt-vtanswer--
Avtpersonvtwhovtisvtcapablevtofvtenteringvtintovtanvtinsurancevtcontract.vtSuchvtavtpersonvtmustvtbevtsane,vtsober,vtandvtofv
evtofvtmajorityvt(agevt15vtinvtmostvtstates).

EmployersvtLiabilityvt-vtanswer--
ThevtsectionvtofvtavtWorkvtCompvtpolicyvtcoveringvtthevtemployervtforvtclaimsvtmadevtbyvtthevtinjuredvtworker'svtfamilyvtme
bers.

FairvtCreditvtReportingvtActvt-vtanswer--Whatvtanvtitemvtwouldvtsellvtforvtinvtthevtmarketplace.

FidelityvtBondvt-vtanswer--AvtcontractvtsoldvtbyvtavtSuretyvtProducervttovtcovervtemployeevttheft.

Gramm-Leach-BlileyvtActvt-vtanswer--
Avtfederalvtlawvtwhichvtprotectsvtconsumervtprivacyvtandvtwhichvtencouragesvtthevtstatesvttovtadoptvtuniformvtlicensingvts
ndards.

Hazzardvt-vtanswer--Anyvtfactorvtthatvtincreasesvtthevtlikelihoodvtthatvtavtperilvtwillvtoccur.

Twistingvt-vtanswer--
Isvtthevtillegalvtandvtmeansvtthatvtnovtpersonvtcan,vtbyvtmisrepresentationsvtorvtmisleadingvtcomparisons,vtinduce,vtorvtten
tovtinducevtanyvtinsuredvttovtlapse,vtterminate,vtforfeit,vtsurrender,vtretainvtorvtconvertvtanyvtinsurancevtpolicy.
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LawvtofvtLargevtNumbersvt-vtanswer--Thevtmaximumvtthevtpolicyvtwillvtpayvtforvtanyvtonevtlossvt-
vtthisvtamountvtwillvtbevtstatedvtonvtthevtDeclarations.



MedicalvtPaymentsvt-vtanswer--
Avtliabilityvtinsurancevttermvtwhichvtrefersvttovtpaymentvtforvtavtvictim'svtmedicalvtbillsvtwithoutvtregardvttovtfault.vtThevtpolic
willvthavevtavtspecifiedvtLimitvtofvtLiabilityvtforvt"medvtpay."vtMedicalvtpaymentsvtarevtnevervtmadevttovtthevtInsured.

MoralevtHazzardvt-vtanswer--
AnvtInsured'svtcarelessnessvtorvtindifferencevtwhichvtwillvtmakevtavtlossvtmorevtlikelyvttovtoccur.

MoralvtHazzardvt-vtanswer--
Refervttovtthevtfactvtthatvtwevtallvtactvtdifferentlyvtwhenvtwevthavevtinsurance.vtWevtarevtsimplyvtlessvtlikelyvttovtpreventvtavtlo
vtifvtwevtknowvtthatvtthevtInsurervtwillvtpayvtthevtclaim.vtMoralvtHazzardvtmayvtalsovtrefervttovtavtthiefvtorvtarsonistvtwhovtintent

nallyvtcausesvtavtloss.

MutualvtInsurervt-vtanswer--Anvtinsurancevtcompanyvtownedvtbyvtthevtpolicyvtholders.

InherentvtVicevt-vtanswer--Avtlossvtcausedvtbyvtnaturalvtdeterioration.vtInsurersvtwillvtnotvtpayvtclaimsvtforvtinherentvtvice.

ExtravtExpensevtPolicyvt-vtanswer--
Commercialvtpropertyvtcoveragevttovtpayvtforvtthevtextravtcostvtofvtcontinuingvtavtbusinessvtaftervtavtloss.

BusinessvtIncomevtPolicyvt-vtanswer--Avtcommercialvtpolicyvtcoveringvtthevtindirectvtlossvtofvtincomevtfollowingvtavtloss.

ComprehensionvtCoveragevt-vtanswer--
Physicalvtdamagevtinsurancevtthatvtcoversvtallvtpropertyvtlossesvtexceptvtcollision.vtAlsovtknownvtasvt"OthervtthanvtCollisi
."

Concealmentvt-vtanswer--Intentionallyvthidingvtthevttruthvtorvtintentionallyvttellingvtonlyvtavtpartialvttruth.

ConditionsvtSectionvt-vtanswer--
Thevtpartvtofvtthevtpolicyvtcontainingvtthevtdetailsvtofvtthevtpolicy,vtincludingvtthevtdutiesvtofvtthevtInsured.

ConsentvttovtSettlevtProvisionvt-vtanswer--
ThevtprovisionvtinvtanvtE&OvtpolicyvtorvtEmploymentvtPracticesvtLiabilityvtPolicyvtrequiringvtthevtInsured'svtconsentvtpriorv
tanyvtclaimvtsettlement.



Considerationvt-vtanswer--Somethingvtofvtvaluevtgivenvtbyvteachvtpartyvtinvtavtcontract.

Declarationsvt-vtanswer--Thevt"DecvtSheet"vtisvtthevtfirstvtpagevtofvtthevtpolicyvtandvtincludesvtthevt"fill-in-
thevtblanks"vtinformationvtobtainedvtbyvtthevtProducer,vtincludingvtthevtnamesvtofvtthevtparties,vtthevtdescriptionvtofvtthevtc
eredvtproperty,vtthevtpolicy'svtlimitvtofvtliability,vtthevtdurationvtofvtthevtpolicy,vtthevtamountvtofvtthevtpremium,vtandvtthevtamo
ntvtofvtthevtdeductible.

Deductiblevt-vtanswer--Thevtamountvtofvtlossvtthatvtthevtinsuredvtmustvtpayvtbeforevtthevtpolicyvtwillvtbeginvttovtpay.

DirectvtLossvt-vtanswer--
Damagevttovtpropertyvtfromvtavtcoveredvtperil.vtPropertyvtpoliciesvttypicallyvtcovervtDirectvtLossesvtandvtexcludevtIndirect
osses.

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StockvtInsurervt-vtanswer--
Anvtinsurervtownedvtbyvtinvestors,vtasvtopposedvttovtavtmutualvtinsurervtwhichvtisvtownedvtbyvtthevtpolicyvtholders.

UninsuredvtMotorvtVehiclevt-vtanswer--
Avtvehiclevtdrivenvtbyvtonevtwhovthasvtthevtstatevtrequiredvtamountvtofvtliabilityvtinsurancevtbutvtwhovtdoesvtnotvthavevtadeq
atevtinsurance,vtorvtwhovtisvtavthitvtandvtrunvtdriver.

UnilateralvtContractvt-vtanswer--
Avtcontractvtwhichvtcontainsvtonlyvtonevtpromise.vtInsurancevtpoliciesvtarevtunilateralvtbecausevttheyvtcontainvtthevtInsure
vtpromisevttovtpayvtavtclaimvtbutvtdovtnotvtcontainvtavtpromisevtbyvtthevtInsuredvttovtpayvtfuturevtpremiums.



Underwritingvt-vtanswer--Thevtprocessvtofvtselectingvtandvtclassifyingvtrisks.

UnderinsuredvtMotorvtVehiclevt-vtanswer--
Avtvehiclevtdrivenvtbyvtonevtwhovthasvtthevtstatevtrequiredvtamountvtofvtliabilityvtinsurancevtbutvtwhovtdoesvthavevtadequate
nsurancevttovtcovervtavtliabilityvtclaim.

StrictvtLiabilityvt-vtanswer--
Avtlegalvtconceptvtholdingvtmanufacturers,vtdistributors,vtandvtretailersvtofvtproductsvtliablevtforvtproductsvtwhichvtarevtdef
tivevtandvtunreasonablyvtdangerous.

SupplementalvtPaymentsvt-vtanswer--ThevtpartvtofvtavtliabilityvtpolicyvtwhichvtpaysvtforvtthevtInsured'svtdefensevtcosts.

VicariousvtLiabilityvt-vtanswer--
Liabilityvtforvtthevtwrongsvtofvtanother.vtForvtexample,vtanvtemployervtisvtvicariouslyvtliablevtforvtthevtnegligentvtactsvtofvton=
e-jobvtemployees.

Theftvt-vtanswer--
Avtbroadvtformvtreferringvttovtanyvtunauthorizedvttakingvtofvtproperty.vtItvtincludesvtrobbery,vtburglary,vtshoplifting.

Subrogationvt-vtanswer--
ThevtInsured'svttransfervttovtthevtInsurervtofvtanyvtclaimvtagainstvtavtthirdvtparty.vtWhenvtavtpropertyvtorvtliabilityvtInsurervtpa
vtavtclaim,vtthevtInsurervtmayvtthenvtsuevtanyvtresponsiblevtthirdvtpartyvtundervtthevtconceptvtofvtsubrogation.



TerroristvtRiskvtInsurancevtActvt(TRIA)vt-vtanswer--
AvtfederalvtlawvtrequiringvtInsurersvttovtoffervtpropertyvtandvtliabilityvtcoveragevtforvtactsvtofvtforeignvtterrorismvt.

OthervtThanvtCollisionvt(OTC)vt-vtanswer--
AnvtautovtinsurancevttermvtwhichvtrefersvttovtcoveragevtforvtthevtinsuredvtautovtagainstvtallvtperilsvtexceptvtCollision.

PeakvtSeasonvtVariablevt-vtanswer--ThevtBOP'svtadditionalvt25%vtcoveragevtforvtpersonalvtpropertyvt-
vtdesignedvttovteliminatevtthevtneedvttovtsendvtinvtavtmonthlyvtreportingvtform.



PenalvtSumvt-vtanswer--Thevtlimitvtofvtliabilityvtundervtavtsuretyvtbond.

PersonalvtInjuryvtProtectionvt(PIP)vt-vtanswer--Avttermvtusedvttovtrefervtto-
faultvtautovtinsurancevtlegislationvtinvtseveralvtstates.vtThisvttermvtisn'tvtinvtthevttextvtbecausevtitvtisn'tvtusedvtinvtmostvtstate

OthervtInsurancevtClausevt-vtanswer--
Thevt"cheapskate"vtprovisionvtwhichvtstatesvtthatvtifvtthevtInsuredvthasvtmorevtthanvtonevtpolicy,vtthevtpoliciesvtwillvtsharevt

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