ONLYSTUDENTS STORE 2024/2025 ALL THE BEST
PROPERTY AND CASUALTY EXAM QUESTIONS AND
ANSWERS LATEST UPDATE 2023/2024 ALL ANSWERS
100% CORRECT VERIFIED BEST GRADED A+ FOR
SUCCESS.
Bailee - CORRECT ANSWERS An individual or organization who has taken into its
care, custody, and/or control the property of another for servicing, repair, or storage
Hazard - CORRECT ANSWERS Something that increases the chance or likelihood
of a loss occuring.
(physical or moral or morale)
Market Value - CORRECT ANSWERS A property policy provision that changes the
valuation method otherwise applicable (ACV or RV) to a valuation method that
allows reimbursement to the insured, according to the price a willing buyer would pay
for the property purches from a willing seller
Insurable Interest
(limit of liability) - CORRECT ANSWERS Specifies that the insurer will not be
responsible for an amount which is greater than the financial interest of an insured
person or more that the limit of liability stated on the Declarations Page
Actual Cash Value
ONLYSTUDENTS STORE 1 DO NOT COPY
,ONLYSTUDENTS STORE 2024/2025 ALL THE BEST
(ACV) - CORRECT ANSWERS The policy pays for the cost to repair or replace the
damaged property at the time of loss, less depreciation
Deductible - CORRECT ANSWERS The amount of money which the insured party
must pay before the insurance company's own coverage plan begins.
Vacancy - CORRECT ANSWERS A property that has neither occupants nor
personal property is described as vacant.
Right of Salvage - CORRECT ANSWERS The right of the insurer to take
possession of damaged property after the loss to the property has been paid. The
salvage belongs to the insurer.
Inherent Vice - CORRECT ANSWERS A condition or defect that exists within
property itself that causes the property to spoil, break, become defective, or destroy
itself. Insurance policies typically exclude inherent vice. Example: The quality of
materials used in a painting allows the painting to fade or lose luster with time.
Aircraft Hull Insurance - CORRECT ANSWERS Provides coverage on an open peril
basis for physical loss or damage to the insured aircraft, on ground, or in flight.
In flight is from the moment it moves forward for takeoff until it completes its landing
run.
ONLYSTUDENTS STORE 2 DO NOT COPY
,ONLYSTUDENTS STORE 2024/2025 ALL THE BEST
Motor Carrier Act of 1980 - CORRECT ANSWERS Department of Transportaion
(DOT) requires:
-Motor carrier must carry an insurance policy of certain minimum limits, or
-Post a surety bond representing certain financial stability criteria when transporting
passengers or cargo.
Contribution by Equal Shares - CORRECT ANSWERS Under this concept, when 2
or more insurers' policies cover at the same level (Primary or Excess), each insurer
contributes an equal amount to the loss settlement until the loss is paid, or until each
insurer has exhausted its limits of insurance, whichever comes first.
Example: If there are 3 insurers participating, each would pay 33 1/3 percent of the
loss; if 4 insurers participating, each would pay 25 percent of the loss; or if 5 insurers
participating, each would pay 20 percent of the loss.
Certified Act of Terrorism - CORRECT ANSWERS Any act, certified jointly as
terrorism by the Secretary of Treasury, State and Attorney General which is at least
one of the following:
-Violent/dangerous to human life/property/infrastructure.
ONLYSTUDENTS STORE 3 DO NOT COPY
, ONLYSTUDENTS STORE 2024/2025 ALL THE BEST
-Damaging within the U.S. or on U.S. air carrier/vessel/mission.
-Committed by persons on behalf of any foreign person/interest to coerce/influence
the U.S. civilian/government policy.
Nationwide Marine Definition - CORRECT ANSWERS Wet insurance and Dry
insurance are terms that the Nationwide Marine Definition uses in specifying risks
that may be written under marine insurance. The National Association of Insurance
Commissioners adopted the Nationwide Marine Definition that defines 6 broad
classes of property that may be insured under marine contract
The classes are:
1. Imports
2. Exports
ONLYSTUDENTS STORE 4 DO NOT COPY
PROPERTY AND CASUALTY EXAM QUESTIONS AND
ANSWERS LATEST UPDATE 2023/2024 ALL ANSWERS
100% CORRECT VERIFIED BEST GRADED A+ FOR
SUCCESS.
Bailee - CORRECT ANSWERS An individual or organization who has taken into its
care, custody, and/or control the property of another for servicing, repair, or storage
Hazard - CORRECT ANSWERS Something that increases the chance or likelihood
of a loss occuring.
(physical or moral or morale)
Market Value - CORRECT ANSWERS A property policy provision that changes the
valuation method otherwise applicable (ACV or RV) to a valuation method that
allows reimbursement to the insured, according to the price a willing buyer would pay
for the property purches from a willing seller
Insurable Interest
(limit of liability) - CORRECT ANSWERS Specifies that the insurer will not be
responsible for an amount which is greater than the financial interest of an insured
person or more that the limit of liability stated on the Declarations Page
Actual Cash Value
ONLYSTUDENTS STORE 1 DO NOT COPY
,ONLYSTUDENTS STORE 2024/2025 ALL THE BEST
(ACV) - CORRECT ANSWERS The policy pays for the cost to repair or replace the
damaged property at the time of loss, less depreciation
Deductible - CORRECT ANSWERS The amount of money which the insured party
must pay before the insurance company's own coverage plan begins.
Vacancy - CORRECT ANSWERS A property that has neither occupants nor
personal property is described as vacant.
Right of Salvage - CORRECT ANSWERS The right of the insurer to take
possession of damaged property after the loss to the property has been paid. The
salvage belongs to the insurer.
Inherent Vice - CORRECT ANSWERS A condition or defect that exists within
property itself that causes the property to spoil, break, become defective, or destroy
itself. Insurance policies typically exclude inherent vice. Example: The quality of
materials used in a painting allows the painting to fade or lose luster with time.
Aircraft Hull Insurance - CORRECT ANSWERS Provides coverage on an open peril
basis for physical loss or damage to the insured aircraft, on ground, or in flight.
In flight is from the moment it moves forward for takeoff until it completes its landing
run.
ONLYSTUDENTS STORE 2 DO NOT COPY
,ONLYSTUDENTS STORE 2024/2025 ALL THE BEST
Motor Carrier Act of 1980 - CORRECT ANSWERS Department of Transportaion
(DOT) requires:
-Motor carrier must carry an insurance policy of certain minimum limits, or
-Post a surety bond representing certain financial stability criteria when transporting
passengers or cargo.
Contribution by Equal Shares - CORRECT ANSWERS Under this concept, when 2
or more insurers' policies cover at the same level (Primary or Excess), each insurer
contributes an equal amount to the loss settlement until the loss is paid, or until each
insurer has exhausted its limits of insurance, whichever comes first.
Example: If there are 3 insurers participating, each would pay 33 1/3 percent of the
loss; if 4 insurers participating, each would pay 25 percent of the loss; or if 5 insurers
participating, each would pay 20 percent of the loss.
Certified Act of Terrorism - CORRECT ANSWERS Any act, certified jointly as
terrorism by the Secretary of Treasury, State and Attorney General which is at least
one of the following:
-Violent/dangerous to human life/property/infrastructure.
ONLYSTUDENTS STORE 3 DO NOT COPY
, ONLYSTUDENTS STORE 2024/2025 ALL THE BEST
-Damaging within the U.S. or on U.S. air carrier/vessel/mission.
-Committed by persons on behalf of any foreign person/interest to coerce/influence
the U.S. civilian/government policy.
Nationwide Marine Definition - CORRECT ANSWERS Wet insurance and Dry
insurance are terms that the Nationwide Marine Definition uses in specifying risks
that may be written under marine insurance. The National Association of Insurance
Commissioners adopted the Nationwide Marine Definition that defines 6 broad
classes of property that may be insured under marine contract
The classes are:
1. Imports
2. Exports
ONLYSTUDENTS STORE 4 DO NOT COPY
