KY PROPERTY & CASUALTY EXAM|99
QUESTIONS AND ANSWERS
What is a hazard? - -An increase in the possibility that a loss might occur
- Purpose of insurance - -To transfer risk from a person, business or
organization to an insurance company in exchange for a deductible
- The type of insurance company in which the policy holder is considered an
owner, with right to vote & share in profits is a - -Mutual company
- What is not an element of insurability? - -Risk of loss must be speculative
- The principle that states that an insured should be stored to approx the
same financial position after loss is - -Indemnity
- What part of an insurance policy personalizes the policy as to who and
what are insured? - -Declarations
- An insurance policy is prepared by the company, with little or no input from
the insured. This means that an policy is a/an - -Adhesion contract
- An individual who owns and lives in a condo can obtain both broad
coverage for person property in the condo under which homeowners form? -
-HO-6
- What is the purpose is the fair credit reporting act? - -To give the recourse
if insurance is denied in the basis of a credit report
- Which is not a liability loss? - -A fire that was caused the insured
negligence burns a neighboring building
- What rating method involves nosying the premium based on the insured
loss experience over a specific time? - -Experience rating
- Most Flood insurance coverage is provided by - -a federal government
program
- What type of business could be emigre for a business owners policy? - -
Rest Easy Motel
- What type of benefit is generally not provided by a state worker
compensation law? - -Pain and suffering
, - What describes an insurance company doing business in a state other than
one where it is incorporated? - -Foreign
- The purpose of a binder is to - -Provide temp protection for the insured
between the time the app is made and the policy is used or binder expires
- Agent Bryan is under contract with XYZ insurance to represent & sell
insurance only for XYZ, this is an example of what type of agency system? -
-Exclusive/captive
- What type of insurance policy insured against all risk of loss that are
specifically excluded by the policy? - -Open peril policy
- Ah insurance company must file policy forms/rates with the state insurance
department & wait for official approval before using the new form & rates.
This is an example of - -Prior approval state
- Affording the the nationwide definition, imports and exports are - -Eligible
for ocean marine insurance
- Which surety bond guarantees that bills for labor & materials will be paid
by the contractor as they are due? - -Payment bond
- What describes actual cash value? - -replacement cost - depreciation
- The condition that provides a means Dk settle the amount of a loss when
the insured & the insurance company cannot agree is the - -Appraisal
condition
- Ah insured purchased new furniture for $6000. At the time of fire loss, it
had depreciated $2000. The same furniture is now $7000 to replace. What is
the ACV? - -$5000
- What can be insurances under an unendorsed policy? - -Private residence
run which the owner/occupant also maintains an office for their accounting
business
- The primary purpose of the business income coverage forms is to
reimburse the insured for - -Loss of income resulting from property damage
at the insured property
- Cover for sums an employer becomes legally obligated to pay under
common law as a result is work related injury to an employee is provided by
- -Part 2- employers liability section of the workers compensation policy
QUESTIONS AND ANSWERS
What is a hazard? - -An increase in the possibility that a loss might occur
- Purpose of insurance - -To transfer risk from a person, business or
organization to an insurance company in exchange for a deductible
- The type of insurance company in which the policy holder is considered an
owner, with right to vote & share in profits is a - -Mutual company
- What is not an element of insurability? - -Risk of loss must be speculative
- The principle that states that an insured should be stored to approx the
same financial position after loss is - -Indemnity
- What part of an insurance policy personalizes the policy as to who and
what are insured? - -Declarations
- An insurance policy is prepared by the company, with little or no input from
the insured. This means that an policy is a/an - -Adhesion contract
- An individual who owns and lives in a condo can obtain both broad
coverage for person property in the condo under which homeowners form? -
-HO-6
- What is the purpose is the fair credit reporting act? - -To give the recourse
if insurance is denied in the basis of a credit report
- Which is not a liability loss? - -A fire that was caused the insured
negligence burns a neighboring building
- What rating method involves nosying the premium based on the insured
loss experience over a specific time? - -Experience rating
- Most Flood insurance coverage is provided by - -a federal government
program
- What type of business could be emigre for a business owners policy? - -
Rest Easy Motel
- What type of benefit is generally not provided by a state worker
compensation law? - -Pain and suffering
, - What describes an insurance company doing business in a state other than
one where it is incorporated? - -Foreign
- The purpose of a binder is to - -Provide temp protection for the insured
between the time the app is made and the policy is used or binder expires
- Agent Bryan is under contract with XYZ insurance to represent & sell
insurance only for XYZ, this is an example of what type of agency system? -
-Exclusive/captive
- What type of insurance policy insured against all risk of loss that are
specifically excluded by the policy? - -Open peril policy
- Ah insurance company must file policy forms/rates with the state insurance
department & wait for official approval before using the new form & rates.
This is an example of - -Prior approval state
- Affording the the nationwide definition, imports and exports are - -Eligible
for ocean marine insurance
- Which surety bond guarantees that bills for labor & materials will be paid
by the contractor as they are due? - -Payment bond
- What describes actual cash value? - -replacement cost - depreciation
- The condition that provides a means Dk settle the amount of a loss when
the insured & the insurance company cannot agree is the - -Appraisal
condition
- Ah insured purchased new furniture for $6000. At the time of fire loss, it
had depreciated $2000. The same furniture is now $7000 to replace. What is
the ACV? - -$5000
- What can be insurances under an unendorsed policy? - -Private residence
run which the owner/occupant also maintains an office for their accounting
business
- The primary purpose of the business income coverage forms is to
reimburse the insured for - -Loss of income resulting from property damage
at the insured property
- Cover for sums an employer becomes legally obligated to pay under
common law as a result is work related injury to an employee is provided by
- -Part 2- employers liability section of the workers compensation policy
