Property And Casualty Insurance Exam With Correct And Verified Solutions 2024

Property And Casualty Insurance Exam With Correct And Verified Solutions 2024 Insurance - correct answer.Transfer of risk form a person or business to an insurer Loss - correct tainty/possibility of a loss Speculative vs pure risk - correct answer.Speculative - chance of loss or gain Pure - only chance of loss Exposure - correct for which the insurance company would be liable Peril - correct of loss Direct vs Indirect loss - correct answer.Direct - physical loss Indirect - consequence of the direct loss (having to pay for a hotel if house burns down) Hazard (3 types) - correct answer.Increases the chance of a loss: Physical - hazard can be seen (wet floor) Moral - dishonesty/poor morals (liar) Morale - careless behavior (unlocked doors) STARR (handling risk) - correct answer.Sharing - two or more individuals agree to pay a portion of any loss incurred by any member Transfer - insurance Avoidance - don't do it (ie not flying) Reduction - wearing a seatbelt or installing burglar alarm Retention - retaining a risk (not having car insurance) CANHAM (elements of insurable risk) - correct answer.Calculable (uses loss statistics to predict future risks) Affordable Non-Catastrophic (national or area disasters are limited/not covered by basic insurance) Homogeneous (risks similar in nature) Accidental Measurable (definite time and place) Stock Insurer - correct answer.Owned by stockholders, taxable dividend (if one), NON-PARticipating policies Mutual Insurer - correct answer.Owned by policyholders, dividend is not taxable (if one), participating policies Fraternal Benefit Society - correct des insurance and benefits to members only (GEICO, USAA) LLoyd's Association - correct answer.Insurance provided by individual underwriters (not companies) for UNUSUAL risks (ie athlete's arm or celeb's hair) Federal Government insurance covers: - correct answer.War risk, nuclear energy, flood, federal crop, unemployment (state), work comp (state) Domestic vs. Foreign vs. Alien - correct answer.Same state vs. different state vs. different country Authorized Insurer - correct ted, CERTIFICATE OF AUTHORITY Unauthorized Insurer - correct -admitted, NO certificate, sells SURPLUS LINES (ie reinsurer) Surplus Lines - correct answer.Insurance sold by unauthorized, only sold to certain HIGH RISK INSUREDS, can't be cheaper than admitted insurers Independent agent - correct iduals that sell insurance products of SEVERAL companies and are independent contractors (not employees of insurer) Captive/Exclusive agents - correct iduals that only represent ONE company and are independent contractors General agents (GAs) or managing general agents (MGAs) - correct answer.Individuals that hire, train, and supervise other agents, independents work for them Direct-writing companies - correct cts sold by employees, not independent contractors Direct Response - correct answer.No agent/producer involved, direct mail Law of Agency - correct ionship in which one person (the Agent) is authorized to represent and act for another person/corporation (the Principal) Express Authority - correct rity made explicit in producer's WRITTEN agency agreement