Kaplan: Property and Casualty P&C: Unit 3: Basics of
Property and Casualty Insurance Exam 100% Verified
Questions & Answers
Q: Property Insurance
Answer:
- Protect the insured from loss caused by damage from a covered peril to insured property
- First Party Losses
- Property can be buildings (real property) or personal property (stuff)
Q: Casualty/Liability Insurance
Answer:
- Protect the insured when it is found legally liable for negligent acts or omissions that cause injury or property damage to
others
- Pays the 'other guy', Third Party Losses
- Second party is insurer
Q: Policy Structure
Answer:
DICEE: Declarations Insuring agreements Conditions Endorsement and additional supplementary coverages Exclusions
Q: Declarations
Answer:
- Information relative to who, what, when and where is on the first page of the policy
- Name of insured(s), a current address, a legal description of the insured property, the policy deductibles, and the term of
the coverage
- Used to help determine premium cost of policy
Q: Insuring Agreement
Answer:
- Summarizes the major promises of the insurer and states what is covered
- Describes covered perils or risks assumed by the insurer and makes reference to the contractual agreement between the
insurer and insured
Q: Conditions
Answer:
- States the policy provisions, rules of conduct, duties, and obligations required for coverage
- If insured does not adhere, insurer may deny coverage or a claim
Q: Endorsements
Answer:
, - Add, modify, or take away coverage
- Attached to the policy and is part of the legal contract
Q: Exclusions
Answer:
- Describing property, perils, hazards, or losses arising from specific causes which are not covered by the policy
Q: Definitions
Answer:
- Clarifies the meanings of certain terms used in the policy
Q: Additional/Supplementary Coverage
Answer:
- Provides payment for certain additional expenses
- Coverage may have separate limits of insurance and may be paid in addition to the maximum limit of liability
Q: Named Insured
Answer:
- Person, business, or other entity named in the declarations to which the policy is issued
Q: First-Named Insured
Answer:
- Person listed first on the declarations page when there is more than one named insured
- May be assigned a higher level of duties or rights (used in commercial when there are multiple partners in a business)
Q: Insureds by Definition
Answer:
- Policy may cover other persons, businesses, or entities as insureds, such as the named insured's resident relatives
- Not listed by name
Q: Additional Insured
Answer:
- Another individual or business added by endorsement
Q: Policy Period
Answer:
- Duration of policy
Q: Policy Territory
Answer:
- Loss will not be covered unless it occurs within the policy territory
Property and Casualty Insurance Exam 100% Verified
Questions & Answers
Q: Property Insurance
Answer:
- Protect the insured from loss caused by damage from a covered peril to insured property
- First Party Losses
- Property can be buildings (real property) or personal property (stuff)
Q: Casualty/Liability Insurance
Answer:
- Protect the insured when it is found legally liable for negligent acts or omissions that cause injury or property damage to
others
- Pays the 'other guy', Third Party Losses
- Second party is insurer
Q: Policy Structure
Answer:
DICEE: Declarations Insuring agreements Conditions Endorsement and additional supplementary coverages Exclusions
Q: Declarations
Answer:
- Information relative to who, what, when and where is on the first page of the policy
- Name of insured(s), a current address, a legal description of the insured property, the policy deductibles, and the term of
the coverage
- Used to help determine premium cost of policy
Q: Insuring Agreement
Answer:
- Summarizes the major promises of the insurer and states what is covered
- Describes covered perils or risks assumed by the insurer and makes reference to the contractual agreement between the
insurer and insured
Q: Conditions
Answer:
- States the policy provisions, rules of conduct, duties, and obligations required for coverage
- If insured does not adhere, insurer may deny coverage or a claim
Q: Endorsements
Answer:
, - Add, modify, or take away coverage
- Attached to the policy and is part of the legal contract
Q: Exclusions
Answer:
- Describing property, perils, hazards, or losses arising from specific causes which are not covered by the policy
Q: Definitions
Answer:
- Clarifies the meanings of certain terms used in the policy
Q: Additional/Supplementary Coverage
Answer:
- Provides payment for certain additional expenses
- Coverage may have separate limits of insurance and may be paid in addition to the maximum limit of liability
Q: Named Insured
Answer:
- Person, business, or other entity named in the declarations to which the policy is issued
Q: First-Named Insured
Answer:
- Person listed first on the declarations page when there is more than one named insured
- May be assigned a higher level of duties or rights (used in commercial when there are multiple partners in a business)
Q: Insureds by Definition
Answer:
- Policy may cover other persons, businesses, or entities as insureds, such as the named insured's resident relatives
- Not listed by name
Q: Additional Insured
Answer:
- Another individual or business added by endorsement
Q: Policy Period
Answer:
- Duration of policy
Q: Policy Territory
Answer:
- Loss will not be covered unless it occurs within the policy territory
