South Carolina P&C Insurance Exam Study Guide with 100% correct answers 2024

South Carolina P&C Insurance Exam Study Guide with 100% correct answers 2024 Abandonment - CORRECT ANSWER-the abdication of insured property into the hands of another, or into the possession of no one in particular Absolute Liability - CORRECT ANSWER-Liability that arises from an extremely dangerous situation. Often found in cases involving explosives. Also known as "strict" liability. For example, you are absolutely liable if you keep a wild animal as a pet. Accident - CORRECT ANSWER-an unplanned, unforseen event which occurs suddenly and at a specific place Actual Cash Value - CORRECT ANSWER-the required amount to pay damages for property loss, which is calculated based on the property's current replacement value minus depreciation Additional Coverage - CORRECT ANSWER-a provision in an insurance policy that allows for more coverage for a specific loss expense without an increase in premium Additional Insureds - CORRECT ANSWER-individuals or business that are not named as insured on the decleration page, butr are protected by the policy, usually in regard to a specific interest Adhesion - CORRECT ANSWER-A contract offered on a "take-it-or-leave-it" basis by an insurer, in which the insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured. Admitted Insurer - CORRECT ANSWER-An insurer to which a state insurance department has granted a license to do business within that state. Adverse Selection - CORRECT ANSWER-In general, the tendency for people with the greatest probability of loss to be the ones most likely to purchase insurance. Agent - CORRECT ANSWER-an individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of an insurer Aggregate Limit - CORRECT ANSWER-the maximum amount an insurer will pay for all covered losses during the covered policy period Agreed Value - CORRECT ANSWER-A property policy with a provision agreed upon by the insurer and insured as to the amount of insurance that represents a fair valuation for the property at the time the insurance is written. Aleatory - CORRECT ANSWER-A contract in which participating parties exchange unequal amounts. the amount the insured will pay in premiums is unequal to the amount the insurer will pay in the event of a loss. Alien Insurer - CORRECT ANSWER-an insurance company that is incorporated outside the U.S. Apparent Authority - CORRECT ANSWER-The appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created. Appraisal - CORRECT ANSWER-an assesment of property to determine either the correct amount of insurance to be written or the amount of loss to be paid Arbitration - CORRECT ANSWER-A process, agreed to by parties to a dispute in lieu of going to court, by which a neutral person or body makes a binding decision Assignment - CORRECT ANSWER-the transfer of legal right or interest in an insurance policy, in P&C ususally only valid with prior written consent of the insurer Authorized Insurer - CORRECT ANSWER-An insurance company that has qualified and received a Certificate of Authority from the Department of Insurance to transact insurance in the state. Auto - CORRECT ANSWER-a land motor vehicle, trailer or semi-trailer designed for use on public roads Avoidance - CORRECT ANSWER-A method of dealing with risk by deliberately keeping away from it (e.g. if a person wanted to avoid the risk of being