California Insurance Personal Lines – Questions
With Fully Explained Solutions
Save
Practice questions for this set
Learn 1 /7 Study using Learn
Harm caused to others/another
Choose an answer
1 Insurance 2 Insurance Contract
3 Liability Loss Exposure 4 CIC
Don't know?
Terms in this set (156)
Insurance Insurer, entity, principal, underwriter, carrier or
company. Uses "we, us, and our". Insurer is the 2nd
party to contract
Person receiving benefits Insured, policyholder, owner. Named insured uses
"you and your". Insured is first parry on contract.
,Claimant Person seeking recovery. In property=insured. In
liability=3rd party
Falsification provision Warning found on claim forms that those filing a false
or fraudulent claim are subject to fines and
imprionment
CIC California Insurance Code- state insurance laws
proposed, written, enacted and changed only by
state Legislatures. Commissioner just enforces
CCR California Code of Regulations- rules and
procedures written by the commissioner to carry out
the intent of the code. Commissioner writes and
changes the regulations.
Pooling Sharing or spreading the risk
Department of Insurance/California DOI and CDI
Department of Insurance
Rescind Voiding or revoking a contract back to its inception
date (beginning) as though it never existed (flat
cancellation). Can ONLY be done for material
misrepresentation, material concealment, breach of
warranty or fraud
CIC definition of Insurance Insurance is a contract (written) in which one
undertakes to indemnify (restore/whole) another
against loss, damage or liability arising from a
contingent or unknown event (may or may not
happen)
Layman definition of Insurance Substitution/exchange of a small certain loss
(premium) for a large uncertain loss (claim)
Conceptual definition of Insurance Social device transferring risk from individuals to a
group
, Insurance Contract Policy, written instrument, indemnity agreement and
legal document
Benefits of insurance Device that allows individuals and society to recover
from unexpected loss; secure credit; satisfy legal
requirements; source of investment income; reduce
social burdens; promotes loss control; reduces
anxiety, uncertainty. Cost benefits increases moral
and morale hazards (dishonesty/lack of care)
Loss Any reduction in quantity, quality or value of
something. Can mean death, bodily injury, property
damage, incurred expenses, reduction in quality of
life or an obligation to pay for any such loss
Property insurance loss Direct to tangible property or indirect
Liability insurance loss Obligation to pay for bodily injury, property damage,
personal injury, advertising injury. Harm caused by
the insured to others
Loss exposure Possibility of loss. There are 3 dimensions of loss
exposure. Type of value exposed to loss, the peril
causing loss, the extent of the potential financial
consequences. Normally written as Property, Liability
or Human/Personnel
Property Loss Exposure Damage to the insureds property
Liability Loss Exposure Harm caused to others/another
Personal Loss Exposure Death, retirement, unemployment, disability
Human Loss Exposure Considered personal unless they give work scenario
(personnel)
Financial Loss IS NOT a loss exposure, it is a consequence of all of
the exposures
With Fully Explained Solutions
Save
Practice questions for this set
Learn 1 /7 Study using Learn
Harm caused to others/another
Choose an answer
1 Insurance 2 Insurance Contract
3 Liability Loss Exposure 4 CIC
Don't know?
Terms in this set (156)
Insurance Insurer, entity, principal, underwriter, carrier or
company. Uses "we, us, and our". Insurer is the 2nd
party to contract
Person receiving benefits Insured, policyholder, owner. Named insured uses
"you and your". Insured is first parry on contract.
,Claimant Person seeking recovery. In property=insured. In
liability=3rd party
Falsification provision Warning found on claim forms that those filing a false
or fraudulent claim are subject to fines and
imprionment
CIC California Insurance Code- state insurance laws
proposed, written, enacted and changed only by
state Legislatures. Commissioner just enforces
CCR California Code of Regulations- rules and
procedures written by the commissioner to carry out
the intent of the code. Commissioner writes and
changes the regulations.
Pooling Sharing or spreading the risk
Department of Insurance/California DOI and CDI
Department of Insurance
Rescind Voiding or revoking a contract back to its inception
date (beginning) as though it never existed (flat
cancellation). Can ONLY be done for material
misrepresentation, material concealment, breach of
warranty or fraud
CIC definition of Insurance Insurance is a contract (written) in which one
undertakes to indemnify (restore/whole) another
against loss, damage or liability arising from a
contingent or unknown event (may or may not
happen)
Layman definition of Insurance Substitution/exchange of a small certain loss
(premium) for a large uncertain loss (claim)
Conceptual definition of Insurance Social device transferring risk from individuals to a
group
, Insurance Contract Policy, written instrument, indemnity agreement and
legal document
Benefits of insurance Device that allows individuals and society to recover
from unexpected loss; secure credit; satisfy legal
requirements; source of investment income; reduce
social burdens; promotes loss control; reduces
anxiety, uncertainty. Cost benefits increases moral
and morale hazards (dishonesty/lack of care)
Loss Any reduction in quantity, quality or value of
something. Can mean death, bodily injury, property
damage, incurred expenses, reduction in quality of
life or an obligation to pay for any such loss
Property insurance loss Direct to tangible property or indirect
Liability insurance loss Obligation to pay for bodily injury, property damage,
personal injury, advertising injury. Harm caused by
the insured to others
Loss exposure Possibility of loss. There are 3 dimensions of loss
exposure. Type of value exposed to loss, the peril
causing loss, the extent of the potential financial
consequences. Normally written as Property, Liability
or Human/Personnel
Property Loss Exposure Damage to the insureds property
Liability Loss Exposure Harm caused to others/another
Personal Loss Exposure Death, retirement, unemployment, disability
Human Loss Exposure Considered personal unless they give work scenario
(personnel)
Financial Loss IS NOT a loss exposure, it is a consequence of all of
the exposures
