Property and Casualty Vocabulary Questions and Answers 100% Pass

Property and Casualty Vocabulary Questions and Answers 100% Pass 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 ️️ -some things are inherently so dangerous that liability is absolute or statutory, as in keeping a tiger as a pet, or keeping explosives in the home Accident - Correct Answer ️️ -anything that happens by chance without an apparent cause Actual Cash Value (ACV) - Correct Answer ️️ -The required amount to pay damages or 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 specific loss expense without increase in premium. Additional Insureds - Correct Answer ️️ -Individuals or businesses that are not named as insured on the declaration page, but 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 insurance company authorized and licensed to transact business in a particular state. Adverse Selection - Correct Answer ️️ -The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability. Agent - Correct Answer ️️ -a businessman who buys or sells for another in exchange for a commission Aggregate Limit - Correct Answer ️️ -The total maximum amount that the insurer will pay during a policy period, usually one year, regardless of the number of incidents, claims, claimants or defendants. Agreed Value - Correct Answer ️️ -Agreed value is a property policy containing a condition agreed upon by the insurer and the insured regarding the amount of insurance that represents a fair valuation of the property at the time the insurance is written. Alien Insurer - Correct Answer ️️ -An insurance company that is incorporated outside the United States. 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 ️️ -a document appraising the value of something (as for insurance or taxation) Arbitration - Correct Answer ️️ -Method of claim settlement used when the insured and the insurer cannot agree upon the amount of the loss. Assignment - Correct Answer ️️ -The transfer of a legal right or interest in an insurance policy. In property and casualty insurance, assignments of policies are usually valid only with the prior written consent on 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, including attached machinery or equipment; auto does not include mobile equipment. 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