Michigan Property and Casualty - Exam Questions And Answers

5 Broad Categories of Exclusions - Non-accidental losses Losses controllable by the insured Extra hazardous perils Catastrophic losses Property covered, and other policies A binder specifies the premium amount - All of the following statements about binders are true, except Absolute liability - Imposed on defendants engaged in hazardous activities, such as harboring, wild animals using explosives, etc. the injured party does not have to prove negligence Actual cash value - replacement cost minus depreciation Actuaries - This is the numbers department these people determine the rage to be charge for various types of insurance Additional coverages in the liability section of a homeowners policy cover all of the following except A. Damage to a third party property for which the insured is legally liable B. Claims expense C. Expenses the injured incurred rendering first aid for bodily injury to third parties D. Damage to the property of others - A. Damage to a third party property for which the insured is legally liable Additional insured - Our designated persons, businesses, or entities listed as ensures that are covered under the policy example mortgage companyAdmitted or authorized insurer - An insurance company who made to the department standards and is authorized to do business in the state Adverse selection - This is a tendency for people with a greater than average exposure to lost to purchase insurance Aggregate limit - This is the limit or the total amount. The insurance company will pay for multiple claims over the course of one policy term. Agreement - Occurs when the other party agrees to the offer or does what was proposed in the offer Aleatory Contract - It is a contract that is contingent, or an uncertain event that provides for unequal transfer of value between the parties Alien company - A company that is Inc. in a country other than the United States, but it's doing business in the states All of the following are additional liability coverage automatically provided in a homeowners policy except A. Claims expense B. Damage to property of others C. Loss assessment coverage D. Personal injury - D. Personal injury An endorsement - In property and casualty insurance when a form, is attached to alter or add to policy, provisions or conditions It is known as Apparent authority - Authority that states that an agent may have whatever authority a reasonable person would assume the agent hasAppraisal - A method of resolving disputes between insurers and insured over the amount owed on a covered loss -both parties select a 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