GA Property & casualty Insurance Exam | Questions & 100% Correct Answers (Verified) | Latest Update | Grade A+

Replacement cost : the full cost to repair damage property or replace damaged property, with property of like kind and quality, at current pricing , without deduction for depreciation Market Value : the price a willing buyer would pay for property purchased from a willing seller under fair market conditions. Stated Value : means that the insurer bases the policy premium on the insureds statement of the property value. (However the insurers will pay the lesser the amount between the stated amount or the actual cash value) Salvage Value : the amount for which property can be sold at the end of it's useful life Proximate Cause 2 | P a g e : also known as primary cause of loss / the first peril that occurs /direct or most important cause of loss Deductible : is specified amount of each loss that the insured must pay as a way to share the cost of loss with the insurance company/ must pay before insurance can give coverage Indemnity : in the event of loss Limits of liability : is the maximum a liability policy will pay in the event of loss, regardless of the number of insureds, claims made, lawsuits filled, or parties making or filling lawsuits Coinsurance/ insurance to value : requires insured to carry a certain a certain percentage of the property total valuation (usually 80%) in order for losses to be paid in full / prevents losses from not being covered in full Occurence : an accident, including continuous or repeated exposure to the same generally harmful conditions that results of loss or damag