PROPERTY AND CASUALTY INSURANCE
ACTUAL TEST PAPER COMPLETE
QUESTIONS AND ANSWERS FULL
SOLUTION
●● HO-6
Answer: Condominium Owners Policy - Is better in worth than an HO-4
●● HO-5
Answer: comprehensive form; open peril coverage for dwelling and
other structures and personal property losses paid on replacement for
dwelling and ACV for contents
●● HO-4
Answer: Renters Policy-- coverage for personal property as well as
liability coverage
●● HO-3
Answer: Homeowners Insurance Coverage - it covers real and personal
property of homeowners, but is the most common and most extensive
protection
●● HO-2
,Answer: broad form; broad coverage for dwelling and personal property;
covered perils similar to DP-1 (includes breakage of glass and theft)
●● Minimum Insurance Limits for Auto Coverage
Answer: $30,000/$60,000/$25,000
●● loss
Answer: Unintentional decline in or dissapperance of value
●● Risk
Answer: uncertainty or chance of a loss occuring
●● Speculative Risk
Answer: uncertanty or chance of a loss occuring in a situation that
involvse the option for either LOSS OR GAIN
●● Pure Risk
Answer: Refers to situations that can ONLY result in a loss or no
change....NO GAIN
●● Indemnity
Answer: Compensation to insured that restores them to same financial
positation that they enjoyed prior to the loss
, ●● Subrogation
Answer: Insure's legal right to seek damages from 3rd party after it has
reimbursed the insured for the loss
●● Insurable Interest
Answer: Any interest an insured may have in property that is a subject of
insurance so that damage or destruction of the property would cause the
insured financial loss. - "You have to have something worth loosing"
●● Law of Large #'s
Answer: the # of people with simular exposure to loss, makes it more
predictable to figure out what the actual loss will be
●● Peril
Answer: The cause of a possible loss
●● Physical Hazards
Answer: Come from structural, material or operational characteristics of
a risk
●● Morale Hazards
ACTUAL TEST PAPER COMPLETE
QUESTIONS AND ANSWERS FULL
SOLUTION
●● HO-6
Answer: Condominium Owners Policy - Is better in worth than an HO-4
●● HO-5
Answer: comprehensive form; open peril coverage for dwelling and
other structures and personal property losses paid on replacement for
dwelling and ACV for contents
●● HO-4
Answer: Renters Policy-- coverage for personal property as well as
liability coverage
●● HO-3
Answer: Homeowners Insurance Coverage - it covers real and personal
property of homeowners, but is the most common and most extensive
protection
●● HO-2
,Answer: broad form; broad coverage for dwelling and personal property;
covered perils similar to DP-1 (includes breakage of glass and theft)
●● Minimum Insurance Limits for Auto Coverage
Answer: $30,000/$60,000/$25,000
●● loss
Answer: Unintentional decline in or dissapperance of value
●● Risk
Answer: uncertainty or chance of a loss occuring
●● Speculative Risk
Answer: uncertanty or chance of a loss occuring in a situation that
involvse the option for either LOSS OR GAIN
●● Pure Risk
Answer: Refers to situations that can ONLY result in a loss or no
change....NO GAIN
●● Indemnity
Answer: Compensation to insured that restores them to same financial
positation that they enjoyed prior to the loss
, ●● Subrogation
Answer: Insure's legal right to seek damages from 3rd party after it has
reimbursed the insured for the loss
●● Insurable Interest
Answer: Any interest an insured may have in property that is a subject of
insurance so that damage or destruction of the property would cause the
insured financial loss. - "You have to have something worth loosing"
●● Law of Large #'s
Answer: the # of people with simular exposure to loss, makes it more
predictable to figure out what the actual loss will be
●● Peril
Answer: The cause of a possible loss
●● Physical Hazards
Answer: Come from structural, material or operational characteristics of
a risk
●● Morale Hazards
