Kentucky Property and Casualty
License Exam |25 Questions and
Answers
ISO - -Insurance Services Office
- Parts of an Insurance Contract - -Declarations, Insuring Agreements,
Conditions, Exclusions, and Definitions
- Declarations of a Contract - -state who in insured, whether it is an
individual or business. states WHAT is insured (specific or broad)
- Named Insured - -person or business named in the Declarations to whom
the policy is issued
- First Named Insured - -person listed first on the Declarations page
- Policy Period - -WHERE and WHEN coverage of a policy begins and ends
- Policy Limit or Limit of Coverage - -maximum amount insurance company
will pay for a loss
- Named Peril - -what a policy will specifically insure against (fire, water
damage, wind damage, etc)
- Open Peril - -insures against all risks of physical loss except those
specifically excluded
- Exclusion: Nonaccidental losses - -excluded because they are on purpose
and not risks at all ex. (wear and tear, rust, corrosion, etc)
- Exclusion: Losses Controllable by Insured - -ex. marring, scratching, or
breaking of fragile objects
- Exclusion: Extra-hazardous perils - -protection that can be provided by the
insurance company, but at higher premiums that average person doesn't
want to pay. ex. earthquake
- Exclusion: Catastrophic Losses - -some losses are so broad in their scope
they could bankrupt any company that insured them. ex. war or nuclear
disasters
License Exam |25 Questions and
Answers
ISO - -Insurance Services Office
- Parts of an Insurance Contract - -Declarations, Insuring Agreements,
Conditions, Exclusions, and Definitions
- Declarations of a Contract - -state who in insured, whether it is an
individual or business. states WHAT is insured (specific or broad)
- Named Insured - -person or business named in the Declarations to whom
the policy is issued
- First Named Insured - -person listed first on the Declarations page
- Policy Period - -WHERE and WHEN coverage of a policy begins and ends
- Policy Limit or Limit of Coverage - -maximum amount insurance company
will pay for a loss
- Named Peril - -what a policy will specifically insure against (fire, water
damage, wind damage, etc)
- Open Peril - -insures against all risks of physical loss except those
specifically excluded
- Exclusion: Nonaccidental losses - -excluded because they are on purpose
and not risks at all ex. (wear and tear, rust, corrosion, etc)
- Exclusion: Losses Controllable by Insured - -ex. marring, scratching, or
breaking of fragile objects
- Exclusion: Extra-hazardous perils - -protection that can be provided by the
insurance company, but at higher premiums that average person doesn't
want to pay. ex. earthquake
- Exclusion: Catastrophic Losses - -some losses are so broad in their scope
they could bankrupt any company that insured them. ex. war or nuclear
disasters
