Insurance License exam set study guide correct and verified A+

Insurance License exam set study guide correct and verified A+Insurance License exam set study guide correct and verified A+ Absolute Liability - correct answer-Liability that arises from an extremely dangerous situation. Absolute Liability is often found in cases involving explosives. Also known as "strict"liability. For example, you are absolutely liable if you keep a wild animal as a pet. Accident - correct answer-A sudden and unexpected event, occurring at a specific time and place. Actual Cash Value (ACV) - correct answer-The cost to replace an item of property at the time of loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a loss (Replacement Cost minus Depreciation). Additional Insured - correct answer-A person, firm, or corporation other than the Named Insured on a policy, or a lender named in a mortgage clause, who is protected against loss by the terms of the policy. Additional Living Expenses - correct answer-A coverage designed to reimburse the insured for an increase in living expenses necessitated by loss to the dwelling. This Indirect Loss must be the result of Direct Loss by a covered Peril. Adjuster - correct answer-Represents the insurance company and acts for the company in working on agreements as to the amount of a loss and the liability of the company. Admitted Company - correct answer-A company that meets the state insurance department's standards and is authorized by the Director to do business in the state. Agent/Producer - correct answer-An individual appointed by an insurance company to solicit, negotiate, effect, or countersign insurance contracts on its behalf. Aggregate Limit - correct answer-A type of policy limit found in Liability policies that limits coverage to a specified total amount for all losses occurring within the policy period. Alien Company - correct answer-An insurance company incorporated in a country other than the United States. Allied Lines - correct answer-Property coverages that are closely associated with and frequently sold with fire insurance: Dwelling Building and Contents form, Earthquake insurance, Sprinkler Leakage, etc. All-Risk Insurance - correct answer-Insurance protecting the insured from loss arising from any peril other than those specifically excluded by name. This contrasts with named peril insurance, which names the peril or perils insured against. Application - correct answer-A questionnaire that is filled out by an agent and the prospect seeking insurance. The form contains rating and underwriting information. The applicant is expected to make representations by answering questions to the best of his or her knowledge (truthfully). Appraisal - correct answer-If the insured and insurer cannot agree on the amount of loss, either may demand an appraisal. Each party will pay its own appraiser and share equally the expenses of the appraisal, as well as an umpire selected by the appraisers, if needed. Agreement by any two of the three will be binding. Appurtenant Structure - correct answer-A structure belonging to the insured structure, such as a tool shed. Appurtenant structures are provided for in the Homeowners policy and other Dwelling policies. This coverage is often called Other Structures or Out Buildings Assigned Risk - correct answer-There are some applicants that underwriters do not care to insure, but because of state law or otherwise, must be provided protection. To become authorized, a Casualty company must agree to participate in the Assigned Risk Pool and take its turn providing Auto insurance to high-risk drivers. Also known as the auto insurance "plan." Audit - correct answ