Property and Casualty Insurance Basics Nebraska Exam
100% Verified Questions & Answers
Q: Credibility
Answer:
the degree of accuracy in forecasting future events based on statistical reporting of past events
Q: Depreciation
Answer:
reduction in value, particularly due to wear and tear
Q: Earned Premium
Answer:
the portion of premium paid in advance that now belongs to the insurer because it apples to the elapsed part of the policy
Q: exposure units
Answer:
used a measure of rating units or the premium base of a risk
Q: homogeneity
Answer:
the degree to which items are similar
Q: Implied warranty
Answer:
a product is suitable for its intended purpose and that it fits an ordinary buyer's expectations
Q: inception
Answer:
the date at which the insurance policy goes into reffect
Q: negligence
Answer:
the failure to use the care that a reasonable, prudent person would under the same or similar cirucmstances
Q: obsolescece
Answer:
depreciation in the value of a property due to becoming outdated
, Q: statute
Answer:
a written law passed by a legislative body
Q: insurable interset
Answer:
the insured would incur a financial loss if the insured property is damaged. May be created by ownership, custody, or
control of a property. MUST EXIST AT THE TIME OF THE LOSS
Q: 3 elements of insurable risk
Answer:
1. Financial (monetary interest)
2. Blood
3. Buisness
Q: Underwriting
Answer:
process of reviewing applications for insurance and the information on the application. risk selection process
Q: Funciton
Answer:
operations of an insurance company where the underwriter is responsible for evaluating applications submitted to the
insurer and determining whether a policy should be issued
Q: loss ratio
Answer:
(incured losses +loss adjusting expense)/ earned premium=
Q: Insurance rates
Answer:
the amount charged for a particular amount of coverage
Q: class rating
Answer:
computing a price per unit of insurance that applies to all applicants possessing a given set of characteristics
Q: Types of individual rate making approaches
Answer:
1. Judgment Rating
2. Schedule Rating
100% Verified Questions & Answers
Q: Credibility
Answer:
the degree of accuracy in forecasting future events based on statistical reporting of past events
Q: Depreciation
Answer:
reduction in value, particularly due to wear and tear
Q: Earned Premium
Answer:
the portion of premium paid in advance that now belongs to the insurer because it apples to the elapsed part of the policy
Q: exposure units
Answer:
used a measure of rating units or the premium base of a risk
Q: homogeneity
Answer:
the degree to which items are similar
Q: Implied warranty
Answer:
a product is suitable for its intended purpose and that it fits an ordinary buyer's expectations
Q: inception
Answer:
the date at which the insurance policy goes into reffect
Q: negligence
Answer:
the failure to use the care that a reasonable, prudent person would under the same or similar cirucmstances
Q: obsolescece
Answer:
depreciation in the value of a property due to becoming outdated
, Q: statute
Answer:
a written law passed by a legislative body
Q: insurable interset
Answer:
the insured would incur a financial loss if the insured property is damaged. May be created by ownership, custody, or
control of a property. MUST EXIST AT THE TIME OF THE LOSS
Q: 3 elements of insurable risk
Answer:
1. Financial (monetary interest)
2. Blood
3. Buisness
Q: Underwriting
Answer:
process of reviewing applications for insurance and the information on the application. risk selection process
Q: Funciton
Answer:
operations of an insurance company where the underwriter is responsible for evaluating applications submitted to the
insurer and determining whether a policy should be issued
Q: loss ratio
Answer:
(incured losses +loss adjusting expense)/ earned premium=
Q: Insurance rates
Answer:
the amount charged for a particular amount of coverage
Q: class rating
Answer:
computing a price per unit of insurance that applies to all applicants possessing a given set of characteristics
Q: Types of individual rate making approaches
Answer:
1. Judgment Rating
2. Schedule Rating
