Exam Fx Chapter 2 - Property and Casualty Insurance Basics Questions With Complete Solutions

Financial(monetary interest) Blood(a relative) Business(a business partner) correct answer: 3 elements of insurable risk at the time of the loss correct answer: In property and casualty insurance, insurable interest must exist __ ___ ____ __ ___ ____ insured correct answer: anyone who is covered under the policy, whether named or not named insured correct answer: the individual whose name appears on the policy's declaration first named insured correct answer: the individual whose name appears first on the policy's declaration. additional insureds correct answer: Individuals or business that are not named as insured on the declaration page, but are protected by the policy, usually in regard to a specific interest. accident correct answer: A sudden, unplanned and unexpected event, not under the control of the insured, resulting in injury or damage that is neither expected nor intended. occurrence correct answer: a broader definition of loss than accident because it includes those losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected peril correct answer: a specific cause of loss; includes fire, wind, hail, and explosions named peril correct answer: term used in property insurance to describe the breadth of coverage provided under an insurance policy form that lists specific covered perils; no coverage is provided for unlisted perils open peril correct answer: Term used in property insurance to describe the breadth of coverage provided under an insurance policy form that insures against "any risk of loss" that is not specifically excluded. Direct loss correct answer: direct physical damage to