Washington State Property and Casualty Insurance - Latest Update 2025 Questions Fully Solved
concealment - Answers withholding of known facts which, if material, can void a contract
misrepresentation - Answers A false statement or lie that can render the contract void
peril - Answers cause of a possible loss
hazard - Answers a circumstance that increases the likelihood of a loss
adhesion - Answers a contract offered on a "take-it-or-leave-it" basis by an insurer, in which the
insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in
favor of the insured
adverse selection - Answers the tendency of risks with higher probability of loss to purchase and
maintain insurance more often than the risks who present lower probability
aggregate limit - Answers maximum limit of coverage available under a liability policy during a policy
year, regardless of the number of claims that may be made or the number of accidents that may occur
aleatory - Answers a contract in which the participating parties agree to exchange unequal amounts
apparent authority - Answers the appearance or the assumption of authority
avoidance - Answers a method of dealing with risk by deliberately keeping away from it
bailee - Answers a person or entity that has possession of personal property entrusted to him/her by the
owner
beneficiary - Answers the person who receives the proceeds from the insurance policy
binder - Answers a temporary contract that puts an insurance policy into force before the premium has
been paid
blanket bond - Answers a type of bond that covers losses caused by dishonest employees
blanket insurance - Answers a single property insurance policy that provides coverage for multiple
classes of property at one location, or provides coverage for one or more classes of property at multiple
locations.
boycott - Answers an unfair trade practice in which one person refuses to do business with another until
he or she agrees to certain conditions
burglary - Answers forced entry into another's premises with felonious intent
cease and desist order - Answers a demand of a person to stop committing an action that is in violation
of a provision
concealment - Answers withholding of known facts which, if material, can void a contract
misrepresentation - Answers A false statement or lie that can render the contract void
peril - Answers cause of a possible loss
hazard - Answers a circumstance that increases the likelihood of a loss
adhesion - Answers a contract offered on a "take-it-or-leave-it" basis by an insurer, in which the
insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in
favor of the insured
adverse selection - Answers the tendency of risks with higher probability of loss to purchase and
maintain insurance more often than the risks who present lower probability
aggregate limit - Answers maximum limit of coverage available under a liability policy during a policy
year, regardless of the number of claims that may be made or the number of accidents that may occur
aleatory - Answers a contract in which the participating parties agree to exchange unequal amounts
apparent authority - Answers the appearance or the assumption of authority
avoidance - Answers a method of dealing with risk by deliberately keeping away from it
bailee - Answers a person or entity that has possession of personal property entrusted to him/her by the
owner
beneficiary - Answers the person who receives the proceeds from the insurance policy
binder - Answers a temporary contract that puts an insurance policy into force before the premium has
been paid
blanket bond - Answers a type of bond that covers losses caused by dishonest employees
blanket insurance - Answers a single property insurance policy that provides coverage for multiple
classes of property at one location, or provides coverage for one or more classes of property at multiple
locations.
boycott - Answers an unfair trade practice in which one person refuses to do business with another until
he or she agrees to certain conditions
burglary - Answers forced entry into another's premises with felonious intent
cease and desist order - Answers a demand of a person to stop committing an action that is in violation
of a provision
