P&C Insurance Exam Review (updated)
questions n answers
Collapse - correct answer ✔✔Collapse of a structure that is not covered by dp-1
Dwelling Policy - correct answer ✔✔DP-1 Basic(good) DP-2 Broad(better) DP-3 Special(best)
Cancellation - correct answer ✔✔Termination of a policy, by either the insurer or the insured,
during the policy term.
Occurence - correct answer ✔✔An accident that includes continuous or repeated exposure to
the same general harmful conditions.
Accident - correct answer ✔✔Something sudden and unexpected resulting in bodily injury or
property damage.
Direct Loss - correct answer ✔✔Actual physical damage that you can see.
Actual Cash Value (ACV) - correct answer ✔✔replacement cost less depreciation.
Burglary - correct answer ✔✔Entering a home and taking someones stuff. Has to have physical
evidence to prove.
Robbery - correct answer ✔✔Taking property by force.
Theft - correct answer ✔✔Act of stealing..
, Insurance - correct answer ✔✔Transferring risk from individuals or business to an insurance
company.
Law of Large Numbers - correct answer ✔✔The larger the group the more you know.
Hazard - correct answer ✔✔Anything that would increase the likely hood that a loss will occur.
Physical, moral, and morale - correct answer ✔✔3 Types of hazards
Morale Hazard - correct answer ✔✔Insureds Carelessness (speeding, drunk driving, leaving
home/business unlocked)
Moral Hazard - correct answer ✔✔Insured Habits (filing false claims, burning down own house)
Physical Hazard - correct answer ✔✔Structural/Material (tree limbs near house, bald tires, using
old epuipment)
Vacancy - correct answer ✔✔empty/no contents or people
Unoccupancy - correct answer ✔✔no people but has contents
Pair/Set Clause - correct answer ✔✔When items are worth more together. Original Value (-)
replacement value. -insurance pays the difference in the value of the set before or after the loss.
Proximate cause - correct answer ✔✔The unbroken chain of cause and effect between the
occurrence of an insured peril(cause of loss) or a negligent act resulting in injury or damage.
questions n answers
Collapse - correct answer ✔✔Collapse of a structure that is not covered by dp-1
Dwelling Policy - correct answer ✔✔DP-1 Basic(good) DP-2 Broad(better) DP-3 Special(best)
Cancellation - correct answer ✔✔Termination of a policy, by either the insurer or the insured,
during the policy term.
Occurence - correct answer ✔✔An accident that includes continuous or repeated exposure to
the same general harmful conditions.
Accident - correct answer ✔✔Something sudden and unexpected resulting in bodily injury or
property damage.
Direct Loss - correct answer ✔✔Actual physical damage that you can see.
Actual Cash Value (ACV) - correct answer ✔✔replacement cost less depreciation.
Burglary - correct answer ✔✔Entering a home and taking someones stuff. Has to have physical
evidence to prove.
Robbery - correct answer ✔✔Taking property by force.
Theft - correct answer ✔✔Act of stealing..
, Insurance - correct answer ✔✔Transferring risk from individuals or business to an insurance
company.
Law of Large Numbers - correct answer ✔✔The larger the group the more you know.
Hazard - correct answer ✔✔Anything that would increase the likely hood that a loss will occur.
Physical, moral, and morale - correct answer ✔✔3 Types of hazards
Morale Hazard - correct answer ✔✔Insureds Carelessness (speeding, drunk driving, leaving
home/business unlocked)
Moral Hazard - correct answer ✔✔Insured Habits (filing false claims, burning down own house)
Physical Hazard - correct answer ✔✔Structural/Material (tree limbs near house, bald tires, using
old epuipment)
Vacancy - correct answer ✔✔empty/no contents or people
Unoccupancy - correct answer ✔✔no people but has contents
Pair/Set Clause - correct answer ✔✔When items are worth more together. Original Value (-)
replacement value. -insurance pays the difference in the value of the set before or after the loss.
Proximate cause - correct answer ✔✔The unbroken chain of cause and effect between the
occurrence of an insured peril(cause of loss) or a negligent act resulting in injury or damage.
