WA State Property & Casualty State exam Correct 100%(GRADED A+)

Assignment - ANSWER The transfer of a policy to another party. Often done when commercial property is sold to a new owner. Building & Personal Property (BPP) - ANSWER The commercial property policy for larger businesses. Business Income Policy - ANSWER A commercial policy covering the indirect loss of income following a loss. Cancellation - ANSWER Termination of a policy during the policy period. Casualty Insurance - ANSWER A broad term which includes all of the policy types that may be sold with a Casualty License - in most states this includes auto, liability, work comp, commercial crime, and surety bonds. Claims Made Form - ANSWER A policy that pays according to the coverage in effect in the year the claim is made rather than according to the coverage in effect at the time of the loss. Professional Liability policies are usually written on a Claims Made basis, while other Liability Policies are written on an Occurrence Basis. Coinsurance Clause - ANSWER The policy provision which sates that if the Insured has less than a specified amount of coverage (usually 80%), the Insurer will not fully cover a partial loss. Commercial Package Policy (CPP) - ANSWER A bundling of commercial policies Competent Party - ANSWER A person who is capable of entering into an insurance contract. Such a person must be sane, sober, and of age of majority (age 15 in most states). Employers Liability - ANSWER The section of a Work Comp policy covering the employer for claims made by the injured worker's family members. Fair Credit Reporting Act - ANSWER What an item would sell for in the marketplace. Fidelity Bond - ANSWER A contract sold by a Surety Producer to cover employee theft. Gramm-Leach-Bliley Act - ANSWER A federal law which protects consumer privacy and which encourages the states to adopt uniform licensing standards.