Property And Casualty Insurance Exam With Verified Solutions 2024

Property And Casualty Insurance Exam With Verified Solutions 2024 What is a peril? - correct answer.A Peril is a cause of loss What is a hazard? - correct answer.Something that increases the chance of a loss What is the difference between a Moral hazard and a Morale Hazard? - correct answer.Moral Hazard - dishonesty, against the law Morale Hazard - carelessness What is the method of handling risk that involves a deductible? - correct answer.Retention (loss or portion of loss) If a fire causes damage to a building, what is the fire considered? - correct answer.A Peril What are the elements of an insurable risk? - correct answer.CANHAM Calculable, Affordable, Non-Catastrophic, Homogeneous, Accidental, Measurable If an insurance company is housed in Tennessee, what type of insurer are they considered? - correct answer.Domestic An insurance company incorporated in Wisconsin and conducting business in Minnesota is know as what type of insurer? - correct answer.Foreign What is it meant by "Express Authority"? - correct answer.Authorities are written in agent contract What is a term that is typically used to describe an Insurance Agent? - correct answer.Fiduciary - a person in a position of financial trust What is a contract or device for transferring risk from a persons, business, or organization to an insurance company? - correct answer.Insurance What is Reinsurance? - correct answer.When insurance companies purchase insurance to cover their own exposures to loss What is a fiduciary? - correct answer.A person in a position of financial trust What is it meant by a contract of adhesion? - correct answer.Policy written by the insurer with the insured having no input What part of the insurance policy shows the premium payment? - correct answer.Declarations page What are the duties of the insured after a loss? - correct answer.Notice to insurer, protect property from further damage, Proof of loss, property available for inspection, examination under oath if needed, cooperate with insurer What is the FCRA? - correct answer.Fair Credit Reporting Act - If the insurer uses credit, must inform insured What are the parts to an insurance contract? - correct answer.Declarations, Conditions, Insuring Agreements, and Exclusions When an insured decides to cancel an insurance policy before the expiration date, how is the unearned premium returned? - correct answer.Short-Rate basis What are the three basic perils? - correct answer.Fire, Lightning, and Internal Explosion What are the extended coverage perils? - correct answer.WCSHAVVER and V&MM -Wind, Civil commotion, Smoke, Hail, Aircraft, Vehicles, Volcanic Eruption, Explosion, Riot, Vandalism and malicious mischef What is the difference between a direct loss and an indirect loss? - correct answer.Direct - immediate damage caused by peril Indirect - loss over time as a result of the direct loss How is ACV calculated? - correct answer.Replacement Cost - depreciation = What is the coinsurance clause and what is the percentage required by the insurer? - correct answer.Requires the insured to carry the standard coinsurance amount of the insurance policy; 80% What is the method called when the insured and insurance company cannot agree on a settlement? - correct answer.Appraisal method What is a bailee? - correct answer.A person or organization that has temporary possession of someone else's personal property What is a tort? - correct answer.A civil wrong that causes someone else to suffer a loss What is Vicarious Liability? - correct answer.Liability for the actions of another