PA property and casualty insurance exam Exam Guide Exam Prep Questions
And Answers (202472025)
Property - ✔✔you can possess/ physically touch
BI - ✔✔bodily injury
PD - ✔✔Property damage
Liability/casualty - ✔✔what you pay the other guy
personal lines insurance - ✔✔cover needs of individual or family (auto,boat,camper,rv)
commercial lines insurance - ✔✔needs of a business
direct loss - ✔✔example - house burns down
indirect loss - ✔✔example - additional money you will have to spend to live somewhere else while
house is being rebuilt. Out of pocket expenses.
indemnify - ✔✔to make whole again - no better no worse
predetermined loss limit - ✔✔based upon the rule of the 4Ls - you get the lower of the loss or the
limit up to the level of your insurable loss.
inherent vice - ✔✔loss results from an inherent property not fortuitous, not covered
CPC - ✔✔catastrophic, predictable, covered elsewhere
, endorsement - ✔✔written modification to your policy designed to accommodate your specific
needs - sometimes called a rider
mutual company - ✔✔earning called surplus, not taxable, dividend
reinsurance treaty - ✔✔% risk transferred and fees involved for entire class
surplus lines producer - ✔✔agent authorized to sell contracts from nonadmitted company if desired
policy is unavailable from admitted company
consideration - ✔✔acceptance and offer
aleatory - ✔✔not necessarily equal due to uncertain timing of event which is the subject of contract
unilateral - ✔✔one promiser
negative data that they can use against you - ✔✔up to seven years
Up to how many years can they use bankruptcy against you? - ✔✔10 years
Largest of these ratings bureaus - ✔✔Insurance services office
premium calculation - ✔✔multiply the units of exposure. example - rate is 2.25$ per sq ft, annual
premium is 10,000 sq ft = 2.25 x 10,000 = 22,500 sq ft
merit rates - ✔✔customized class rates based upon physical characteristics or modifications to
exposure or loss experience
And Answers (202472025)
Property - ✔✔you can possess/ physically touch
BI - ✔✔bodily injury
PD - ✔✔Property damage
Liability/casualty - ✔✔what you pay the other guy
personal lines insurance - ✔✔cover needs of individual or family (auto,boat,camper,rv)
commercial lines insurance - ✔✔needs of a business
direct loss - ✔✔example - house burns down
indirect loss - ✔✔example - additional money you will have to spend to live somewhere else while
house is being rebuilt. Out of pocket expenses.
indemnify - ✔✔to make whole again - no better no worse
predetermined loss limit - ✔✔based upon the rule of the 4Ls - you get the lower of the loss or the
limit up to the level of your insurable loss.
inherent vice - ✔✔loss results from an inherent property not fortuitous, not covered
CPC - ✔✔catastrophic, predictable, covered elsewhere
, endorsement - ✔✔written modification to your policy designed to accommodate your specific
needs - sometimes called a rider
mutual company - ✔✔earning called surplus, not taxable, dividend
reinsurance treaty - ✔✔% risk transferred and fees involved for entire class
surplus lines producer - ✔✔agent authorized to sell contracts from nonadmitted company if desired
policy is unavailable from admitted company
consideration - ✔✔acceptance and offer
aleatory - ✔✔not necessarily equal due to uncertain timing of event which is the subject of contract
unilateral - ✔✔one promiser
negative data that they can use against you - ✔✔up to seven years
Up to how many years can they use bankruptcy against you? - ✔✔10 years
Largest of these ratings bureaus - ✔✔Insurance services office
premium calculation - ✔✔multiply the units of exposure. example - rate is 2.25$ per sq ft, annual
premium is 10,000 sq ft = 2.25 x 10,000 = 22,500 sq ft
merit rates - ✔✔customized class rates based upon physical characteristics or modifications to
exposure or loss experience
