PROPERTY AND CASUALTY PRACTICE SET
2026 FULL SOLUTION
◉ Actual Cash Value (ACV). Answer: The cost to replace an item of
property at the time of loss, less an allowance for depreciation. Often
used to determine amount of reimbursement for a loss.
◉ Additional Living Expense. Answer: A coverage designed to
reimburse the insured for an increase in living expenses
necessitated by loss to the dwelling. This indirect loss must be the
result of a direct loss by a covered peril.
◉ Adhesion. Answer: A characteristic of insurance policies that
means the contract is prepared by the insurer and is non-negotiable
or "one-sided".
◉ Admitted Company. Answer: A company which meets the state
insurance department's standards and is authorized to do business
in the state.
◉ Agent. Answer: The state-licensed professional who represents
the insurance company in the sale and servicing of insurance. The
direct link between the insurance company and the policyholder.
,◉ Aggregate Limit. Answer: A type of policy limit found in liability
policies which limits coverage to a specified total amount for all
losses occurring within the policy period.
◉ Aleatory. Answer: A characteristic of insurance contracts, meaning
a contract in which equal value is not given by both parties to the
contract.
◉ Alien Company. Answer: An insurance company incorporated in a
country other than the United States.
◉ Allied Lines. Answer: Used to insure additional types of losses to
property and sold in conjunction with fire insurance.
◉ All-Risk. Answer: A term used to indicate that property is covered
against all perils except those specifically excluded.
◉ Apportionment. Answer: A method determining how much will be
contributed by each company toward a loss covered under more
than one policy.
◉ Appurtenant Structures. Answer: A structure belonging to the
insured and associated with the insured property. (another name for
"other structures")
, ◉ Appraisal Clause. Answer: A clause which provides a specific
procedure when the insured and the insurer are in disagreement
regarding the amount of a loss.
◉ Binder. Answer: An acknowledgment (or receipt), usually from
the agent, that insurance applied for is in force regardless of any
premium settlement.
◉ Blanket Position Bond. Answer: Fidelity bond which specifies a
single limit of liability applicable to each employee involved in a loss.
◉ Bodily Injury. Answer: __________ coverage pays for injuries,
sickness, disease, or required care for death that the policyholder is
found legally liable for.
◉ Boiler and Machinery Policy. Answer: Insurance which covers the
insured against loss (liability and physical damage) arising out of the
use of scheduled commercial equipment.
◉ Broker. Answer: An individual who represents the prospect,
instead of the insurance company, in the insurance transaction.
Frequently involved in the placement of very large or unusual risks.
2026 FULL SOLUTION
◉ Actual Cash Value (ACV). Answer: The cost to replace an item of
property at the time of loss, less an allowance for depreciation. Often
used to determine amount of reimbursement for a loss.
◉ Additional Living Expense. Answer: A coverage designed to
reimburse the insured for an increase in living expenses
necessitated by loss to the dwelling. This indirect loss must be the
result of a direct loss by a covered peril.
◉ Adhesion. Answer: A characteristic of insurance policies that
means the contract is prepared by the insurer and is non-negotiable
or "one-sided".
◉ Admitted Company. Answer: A company which meets the state
insurance department's standards and is authorized to do business
in the state.
◉ Agent. Answer: The state-licensed professional who represents
the insurance company in the sale and servicing of insurance. The
direct link between the insurance company and the policyholder.
,◉ Aggregate Limit. Answer: A type of policy limit found in liability
policies which limits coverage to a specified total amount for all
losses occurring within the policy period.
◉ Aleatory. Answer: A characteristic of insurance contracts, meaning
a contract in which equal value is not given by both parties to the
contract.
◉ Alien Company. Answer: An insurance company incorporated in a
country other than the United States.
◉ Allied Lines. Answer: Used to insure additional types of losses to
property and sold in conjunction with fire insurance.
◉ All-Risk. Answer: A term used to indicate that property is covered
against all perils except those specifically excluded.
◉ Apportionment. Answer: A method determining how much will be
contributed by each company toward a loss covered under more
than one policy.
◉ Appurtenant Structures. Answer: A structure belonging to the
insured and associated with the insured property. (another name for
"other structures")
, ◉ Appraisal Clause. Answer: A clause which provides a specific
procedure when the insured and the insurer are in disagreement
regarding the amount of a loss.
◉ Binder. Answer: An acknowledgment (or receipt), usually from
the agent, that insurance applied for is in force regardless of any
premium settlement.
◉ Blanket Position Bond. Answer: Fidelity bond which specifies a
single limit of liability applicable to each employee involved in a loss.
◉ Bodily Injury. Answer: __________ coverage pays for injuries,
sickness, disease, or required care for death that the policyholder is
found legally liable for.
◉ Boiler and Machinery Policy. Answer: Insurance which covers the
insured against loss (liability and physical damage) arising out of the
use of scheduled commercial equipment.
◉ Broker. Answer: An individual who represents the prospect,
instead of the insurance company, in the insurance transaction.
Frequently involved in the placement of very large or unusual risks.
