Property and Casualty Insurance Exam With Latest Updated Solutions 2024

Property and Casualty Insurance Exam With Latest Updated Solutions 2024 Specific insurance - correct answer.This type of insurance designates a particular item to be insured Blanket insurance - correct answer.This type of insurance covers more than one item of property at a single location or one more items of property at multiple locations. Speculative - correct bility of both gain and loss. Not insurable. Pure - correct the possibility of loss. Insurable. What are the 5 methods of managing or handling risk? - correct , control, retain, and transfer risk. Hazard - correct answer.A condition or situation which increases the chance for loss Physical Hazards - correct answer.a hazard that arises from the condition, occupancy, or use of the property itself. ex: skateboard left on the steps Moral Hazards - correct an individual through carelessness or by irresponsible actions can increase the possibly for a loss. ex: person who drives carelessly just because they know they are insured. Morale Hazards - correct a person might create a loss situation on purpose just to collect from the insurance company. ex: Prearranged, faked theft of someone's old vehicle so they can get an insurance payout to buy a new vehicle. Replacement Cost - correct answer.The amount of money it would take to replace a damaged or destroyed item with one of like kind and quality AT THE TIME OF LOSS. No deduction for depreciation. Actual Cash Value (ACV) - correct answer.Replacement Cost, minus depreciation. Pair and Set Clause - correct answer.Loss to one item of a pair or set does not constitute loss to the entire pair or set. Appraisal - correct answer.A method of resolving disputes between insurers and insureds over the amount owed on a covered loss. -both parties select an appraiser -the two appraisers select an umpire -if the appraisers do not agree, the umpire is consulted -the amount agreed on by 2 out of 3 is the amount that will be paid Subrogation - correct answer.An insurer's right to recover the amount of its loss payment from the third party who is legally responsible for the loss. Arbitration - correct condition is similar to the Appraisal Condition but it is not limited to disputes over the value of the loss. It may also be used to resolve other areas of disagreement between the insured and the insurance company. What does WC SHAVVER stand for? - correct answer.Windstorm, Civil commotion, Smoke, Hail, Aircraft, Vehicles, Volcanic eruption, Explosion, Riot What does BIG AFFECT stand for? - correct answer.Burglar damage, Ice & snow weight, Glass breakage, Accidental discharge, Falling objects, Freezing of pipes, Electrical damage, Collapse, Tearing apart. Insolvency - correct answer.A financial state that occurs if liabilities are greater than assets. Law of Agency - correct answer.Knowledge of the Agents is Knowledge of the Principal (Insurance Company) Principal - correct answer.Insurance Company What is the ISO? - correct answer.Insurance Services Office which is an organization established for the benefit of its member insurance companies. This organization gathers statistics, provides loss costs, drafts policy forms and coverage provisions and conducts inspections for rate making purposes. Coinsurance Clause - correct answer.Requires the insured to carry a minimum specified amount (generally 80%) of the replacement cost value of the insured property in order for partial losses to be paid in full.