OKLAHOMA PROPERTY & CASUALTY QUESTIONS & ANSWERS SCORED A+ TO PASS

80% - Answer-Standard co-insurance amount. Abandonment - Answer-The insured leaving the damaged property and demanding full payment for a total loss. Actual Cash Value (ACV) - Answer-Replacement cost at the time of loss less depreciation. Actuary - Answer-The person who establishes rates for the insurer. Advertising Liability - Answer-Offense that arises from advertising the insured's services or products including unintentional violation of copyright laws. Aggregate Limit - Answer-A type of policy limit that does not restore the limits of liability after each occurrence. Agreed Value - Answer-A property insurance valuation method that provides for payment of the full policy limit determined at the time of application for insurance. Appraisal Clause - Answer-Found in the conditions section of a policy, used to determine the amount of property loss. Assignment - Answer-The condition that allows the insured to change the ownership of the policy to another person with only the insurer approval. Auto - Answer-A land motor vehicle, trailer, or semi trailer designed for travel on public roads. Bailee - Answer-Business people in service occupations who have temporary custody of the property of others in order perform a service.Binder - Answer-Temporary insurance coverage. Bodily Injury - Answer-Tangible physical harm to a third party claimant including medical, pain and suffering, and loss of wages. Bonds - Answer-Used to guarantee promises (obligations) made by a person (or legal entity) if they fail to uphold their promise. Burglary - Answer-Taking of property from inside the insured premises by a person unlawfully entering the premises as evidence by visible sigs of forced entry or exit while the business is closed. Business Auto Coverage Form (BAP) - Answer-Designed for insureds that own and operate autos in business activities. Any type of vehicle subject to compulsory financial responsibility laws can be covered. Business Owner's Policy - Answer-A self-contained commercial package policy designed to provide property and liability coverage for smaller, less complex business. Class 1 - Frame - Answer-Exterior walls, floors and roof are constructed with wood. Class 2 - Joisted Masonry - Answer-Exterior walls constructed with masonry such as brick or rock. Floors and roof are constructed with wood. Class 3 - Noncombustible - Answer-Exterior walls, floors and roof are constructed with non-combustible materials such as metal or asbestos. Class 4 - Masonry Noncombustible - Answer-Exterior walls are constructed with masonry such as brick or rock. Floors and roof are constructed with metal or other non-combustible material. Class 5 - Modified Fire Resistive - Answer-Exterior walls, floor and roof are constructed with fire resistive materials with a fire resistive rating of less than 2 hours.Class 6 - Fire Resistive - Answer-Exterior walls, floor and roof are constructed with fire resistive materials with a fire resistive rating of 2 hours or more. Coinsurance - Answer-A policy provision which requires the insured to carry an adequate amount of insurance. Penalty applies when property is insured for an amount under the market value of the dwelling. Collision - Answer-The upset (overturn) of your covered auto or a non-owned auto or impact with another vehicle or object (other than a bird or animal). Commercial Package Policy (CPP) Coverage Parts - Answer-1. Commercial Property 2. Commercial General Liability 3. Commercial Auto 4. Commercial Crime 5. Commercial Inland Marine 6. Equipment Breakdown Insurance. 7. Farm Coverage