Property and Casualty Insurance EXAM
Specific coverage - ANSThis form of coverage designates a selected object to be insured
Blanket insurance - ANSThis sort of coverage covers a couple of object of belongings at a
single vicinity or one greater gadgets of belongings at a couple of places.
Speculative - ANSpossibility of each gain and loss. Not insurable.
Pure - ANSonly the opportunity of loss. Insurable.
What are the five techniques of handling or handling chance? - ANSavoid, manage, keep, and
switch chance.
Hazard - ANSA circumstance or situation which will increase the hazard for loss
Physical Hazards - ANSa hazard that arises from the situation, occupancy, or use of the
belongings itself.
Ex: skateboard left on the steps
Moral Hazards - ANSwhen an character thru carelessness or through irresponsible movements
can boom the in all likelihood for a loss.
Ex: man or woman who drives carelessly just due to the fact they understand they are insured.
Morale Hazards - ANSwhen someone would possibly create a loss state of affairs on cause
simply to accumulate from the insurance agency.
Ex: Prearranged, faked robbery of a person's vintage car with the intention to get an coverage
payout to shop for a brand new car.
Replacement Cost - ANSThe amount of money it would take to replace a broken or destroyed
item with one among like kind and high-quality AT THE TIME OF LOSS. No deduction for
depreciation.
Actual Cash Value (ACV) - ANSReplacement Cost, minus depreciation.
Pair and Set Clause - ANSLoss to at least one object of a pair or set does no longer represent
loss to the whole pair or set.
,Appraisal - ANSA approach of resolving disputes between insurers and insureds over the
quantity owed on a protected loss.
-each events pick out an appraiser
-the two appraisers choose an umpire
-if the appraisers do now not agree, the umpire is consulted
-the amount agreed on by way of 2 out of three is the quantity with a purpose to be paid
Subrogation - ANSAn insurer's proper to get better the amount of its loss charge from the 1/3
celebration who is legally accountable for the loss.
Arbitration - ANSthis situation is similar to the Appraisal Condition but it is not confined to
disputes over the fee of the loss. It may also be used to resolve other regions of war of words
among the insured and the insurance company.
What does WC SHAVVER stand for? - ANSWindstorm, Civil commotion, Smoke, Hail, Aircraft,
Vehicles, Volcanic eruption, Explosion, Riot
What does BIG AFFECT stand for? - ANSBurglar damage, Ice & snow weight, Glass breakage,
Accidental discharge, Falling objects, Freezing of pipes, Electrical harm, Collapse, Tearing
aside.
Insolvency - ANSA financial nation that happens if liabilities are more than assets.
Law of Agency - ANSKnowledge of the Agents is Knowledge of the Principal (Insurance
Company)
Principal - ANSInsurance Company
What is the ISO? - ANSInsurance Services Office that is an organization installed for the
advantage of its member insurance companies. This agency gathers records, provides loss
charges, drafts policy paperwork and insurance provisions and conducts inspections for charge
making functions.
Coinsurance Clause - ANSRequires the insured to carry a minimum particular amount (usually
80%) of the substitute price fee of the insured property so as for partial losses to be paid in full.
Estoppel - ANSA legal bar to converting or denying a reality because of one's personal
preceding movements or words to the contrary.
Ex: If an insurance organization representative deliberately or accidentally gives the affect that a
specific truth exists whilst it does no longer and a consumer relies on that impression and is
damaged a result.
, Binder - ANSA temporary settlement of insurance, oral or written, provided with the aid of an
insurer pending issuance of the policy. Usually written for a length of 30-60 days and remains in
pressure for that period or until a everlasting policy is both issued or denied by the insurer.
Warranty - ANSA provision in a policy that pledges that a circumstance does exist or will exist at
a while inside the destiny.
Deposit Premium - ANSTentative charge made at the start of certain guidelines and reinsurance
agreements to be adjusted when the real earned rate has been later decided.
Audit - ANSVerification of books or accounts to determine their accuracy.
Occurrence - ANSAn accident, which includes continuous or repeated exposure to the identical
harmful situations, which result in physical injury or belongings harm.
Special Damages - ANStype of compensatory damages that reimburse the injured element for
direct and specific fees worried inside the loss. Such as clinical prices, funeral fees and loss
wages.
General Damages - ANStype of compensatory damages that reimburse the injured birthday
party for such things as pain and suffering and disfigurement.
Punitive Damages - ANStype of damages intended to punish the defendant and make an
instance out of her to discourage others from behaving the equal manner.
Proximate Cause - ANSAn act, thru an uniterrupted chain of events, that can be determined to
be the immediate or real reason of a loss.
4 elements of negligence - ANS1. The existence of a DUTY to behave in a sure way
2. A FAILURE to stay as much as this duty
three. An actual INJURY need to arise
four. The failure in obligation must be the PROXIMATE CAUSE of the harm.
Negligence - ANSAn unreasonable or prudent act, A thoughtless or careless act or one devoted
out of lack of information. It can be a non-act or omission, but it's far NEVER an intentional act.
Casualty Insurance - ANSRefers to insurance designed to deal with the liability of individuals
and businesses as a result of negligent acts in their personal, enterprise, or professional roles.
Overinsurance - ANSExists if a property or an insurable hobby in belongings is insured by using
one or more coverage contracts against the equal danger in excess of the truthful fee of the
assets or of such interest.
Specific Insurance - ANSCoverage on ONE type of assets (actual or non-public) in ONE vicinity.
Specific coverage - ANSThis form of coverage designates a selected object to be insured
Blanket insurance - ANSThis sort of coverage covers a couple of object of belongings at a
single vicinity or one greater gadgets of belongings at a couple of places.
Speculative - ANSpossibility of each gain and loss. Not insurable.
Pure - ANSonly the opportunity of loss. Insurable.
What are the five techniques of handling or handling chance? - ANSavoid, manage, keep, and
switch chance.
Hazard - ANSA circumstance or situation which will increase the hazard for loss
Physical Hazards - ANSa hazard that arises from the situation, occupancy, or use of the
belongings itself.
Ex: skateboard left on the steps
Moral Hazards - ANSwhen an character thru carelessness or through irresponsible movements
can boom the in all likelihood for a loss.
Ex: man or woman who drives carelessly just due to the fact they understand they are insured.
Morale Hazards - ANSwhen someone would possibly create a loss state of affairs on cause
simply to accumulate from the insurance agency.
Ex: Prearranged, faked robbery of a person's vintage car with the intention to get an coverage
payout to shop for a brand new car.
Replacement Cost - ANSThe amount of money it would take to replace a broken or destroyed
item with one among like kind and high-quality AT THE TIME OF LOSS. No deduction for
depreciation.
Actual Cash Value (ACV) - ANSReplacement Cost, minus depreciation.
Pair and Set Clause - ANSLoss to at least one object of a pair or set does no longer represent
loss to the whole pair or set.
,Appraisal - ANSA approach of resolving disputes between insurers and insureds over the
quantity owed on a protected loss.
-each events pick out an appraiser
-the two appraisers choose an umpire
-if the appraisers do now not agree, the umpire is consulted
-the amount agreed on by way of 2 out of three is the quantity with a purpose to be paid
Subrogation - ANSAn insurer's proper to get better the amount of its loss charge from the 1/3
celebration who is legally accountable for the loss.
Arbitration - ANSthis situation is similar to the Appraisal Condition but it is not confined to
disputes over the fee of the loss. It may also be used to resolve other regions of war of words
among the insured and the insurance company.
What does WC SHAVVER stand for? - ANSWindstorm, Civil commotion, Smoke, Hail, Aircraft,
Vehicles, Volcanic eruption, Explosion, Riot
What does BIG AFFECT stand for? - ANSBurglar damage, Ice & snow weight, Glass breakage,
Accidental discharge, Falling objects, Freezing of pipes, Electrical harm, Collapse, Tearing
aside.
Insolvency - ANSA financial nation that happens if liabilities are more than assets.
Law of Agency - ANSKnowledge of the Agents is Knowledge of the Principal (Insurance
Company)
Principal - ANSInsurance Company
What is the ISO? - ANSInsurance Services Office that is an organization installed for the
advantage of its member insurance companies. This agency gathers records, provides loss
charges, drafts policy paperwork and insurance provisions and conducts inspections for charge
making functions.
Coinsurance Clause - ANSRequires the insured to carry a minimum particular amount (usually
80%) of the substitute price fee of the insured property so as for partial losses to be paid in full.
Estoppel - ANSA legal bar to converting or denying a reality because of one's personal
preceding movements or words to the contrary.
Ex: If an insurance organization representative deliberately or accidentally gives the affect that a
specific truth exists whilst it does no longer and a consumer relies on that impression and is
damaged a result.
, Binder - ANSA temporary settlement of insurance, oral or written, provided with the aid of an
insurer pending issuance of the policy. Usually written for a length of 30-60 days and remains in
pressure for that period or until a everlasting policy is both issued or denied by the insurer.
Warranty - ANSA provision in a policy that pledges that a circumstance does exist or will exist at
a while inside the destiny.
Deposit Premium - ANSTentative charge made at the start of certain guidelines and reinsurance
agreements to be adjusted when the real earned rate has been later decided.
Audit - ANSVerification of books or accounts to determine their accuracy.
Occurrence - ANSAn accident, which includes continuous or repeated exposure to the identical
harmful situations, which result in physical injury or belongings harm.
Special Damages - ANStype of compensatory damages that reimburse the injured element for
direct and specific fees worried inside the loss. Such as clinical prices, funeral fees and loss
wages.
General Damages - ANStype of compensatory damages that reimburse the injured birthday
party for such things as pain and suffering and disfigurement.
Punitive Damages - ANStype of damages intended to punish the defendant and make an
instance out of her to discourage others from behaving the equal manner.
Proximate Cause - ANSAn act, thru an uniterrupted chain of events, that can be determined to
be the immediate or real reason of a loss.
4 elements of negligence - ANS1. The existence of a DUTY to behave in a sure way
2. A FAILURE to stay as much as this duty
three. An actual INJURY need to arise
four. The failure in obligation must be the PROXIMATE CAUSE of the harm.
Negligence - ANSAn unreasonable or prudent act, A thoughtless or careless act or one devoted
out of lack of information. It can be a non-act or omission, but it's far NEVER an intentional act.
Casualty Insurance - ANSRefers to insurance designed to deal with the liability of individuals
and businesses as a result of negligent acts in their personal, enterprise, or professional roles.
Overinsurance - ANSExists if a property or an insurable hobby in belongings is insured by using
one or more coverage contracts against the equal danger in excess of the truthful fee of the
assets or of such interest.
Specific Insurance - ANSCoverage on ONE type of assets (actual or non-public) in ONE vicinity.
