PA Property and Casualty Insurance Exam with Complete Solutions

PA Property and Casualty Insurance Exam with Complete Solutions Property you can possess/ physically touch BI bodily injury PD Property damage Liability/casualty what you pay the other guy personal lines insurance cover needs of individual or family (auto,boat,camper,rv) commercial lines insurance needs of a business direct loss example - house burns down indirect loss example - additional money you will have to spend to live somewhere else while house is being rebuilt. Out of pocket expenses. indemnify to make whole again - no better no worse predetermined loss limit based upon the rule of the 4Ls - you get the lower of the loss or the limit up to the level of your insurable loss. inherent vice loss results from an inherent property not fortuitous, not covered CPC catastrophic, predictable, covered elsewhere endorsement written modification to your policy designed to accommodate your specific needs - sometimes called a rider mutual company earning called surplus, not taxable, dividend reinsurance treaty % risk transferred and fees involved for entire class surplus lines producer agent authorized to sell contracts from nonadmitted company if desired policy is unavailable from admitted company consideration acceptance and offer aleatory not necessarily equal due to uncertain timing of event which is the subject of contract unilateral one promiser