Louisiana Property and Casualty Insurance Key Compulsory Exam Questions And CORRECT Answers

Adverse Selectionlower or poorer risks more prone to losses than normal risks. Aleatory Contractthe consideration that is being exchanged is unequal or unrelated to the consideration given by the other party. Basicnamed peril coverage, the least coverage available. In dwelling policies it includes: fire, lightning, removal, and internal explosion. Broadnamed peril coverage, covering more named perils than the basic form. In dwelling coverage it covers all perils under basic including EC and V&MM plus: damage by burglars (not theft); weight of ice, snow or sleet; accidental discharge or overflow of water or steam; freezing of plumbing, heating, a/c, or sprinkler systems; falling objects; artificially generated electrical current; and tearing apart, cracking, burning, or bulging of a steam or water system