Illinois Casualty Insurance State Exam
Peril correct answersAn event that causes damage and results in financial
loss (a claim)
Risk correct answersThe chance that something harmful or unexpected could
happena to
cause peril (a
claim)
Speculative Risk correct answersUncertainty about an event that could result
in either
profit or aa
loss
Pure Risk correct answersUncertainty to whether an event will occur to
cause a loss
Hazard correct answersA situation where it is more likely for a peril (a
claim) to occur
Indemnity correct answersCompensation payments made from the
insurance
to the insured
company
to compensate for
a loss
Insurable Interest correct answersReasonable concern for a person to obtain
insurance
against unforeseen events (death,
losses)
Actual Cash Value Coverage correct answersAmount of $ the insurance
company
pay to thewill
insured to cover the value of replacement cost minus damages
(depreciation)
at time of
loss
Replacement Cost correct answersAmount of $ the insurance company will
pay to the
insured to compensate value of similar or same
property
Negligence correct answersFailure to act in a reasonable/expected way that
results in a
los
s
Limits of Liability correct answersThe amount of money the insurance
company
if something willbad
pay happens to you or your
property
Supplemental Payments correct answersThings specified in auto policies that
insurance
company will pay for in addition to the auto policy limits of liability (first
appeal and bond
aid expenses,
expenses)
Burglary correct answersTheft of property from one premises to another
with forced
entry or
exit
Robbery correct answersTheft of property from one premises to another
by force
threat of or
force
, Theft correct answersIntent to steal property with intent to deprive
the owner
Bond correct answersA contract that guarantees a
promise
(Principal, Obligee,
Surety)
Fair Credit Reporting Act correct answersThe applicants right to information
their insurance
regarding
policies
Law of Torts correct answersLegal proceeding through which claims for
moneyinjuries
bodily for and/or property damage are
made.
Commercial General Liability Policy correct answersCovers liability for
business as well as new hazards arising during the policy term,
insured's
whether they
reported to the are
insurance company or not. The CGL policy covers legal
liability forofallthe
members
business.
Comprehensive (All-Risk) Coverage correct answersCovers all forms of
damageauto
insured to except those
excluded ***
Collision Coverage correct answersCovers damage to insured vehicle
caused by
collision or
upset
Auto Liability Coverage correct answersPays for all sums for which an
insured business
becomes legally responsible for bodily injuries, physical damage, and
caused to third
injuries/damage
parties.
Employer's Non-Ownership Liability Coverage correct answersProtects an
employer
against legal liability caused by an employee while driving an auto not
owned by the
employ
er
Auto Medical Payments Coverage correct answersCovers the insured and all
members
of his/her household if injured by any auto anywhere. It covers medical
expenses for
passengers of the insured auto. It pays whether the insured was legally
responsible for
Physical Damage Coverage correct answersFirst party coverage that covers
injuries or
damage
the
not. insured
to
vehicle
Transportation (Rental Reimbursement) Coverage correct
answersAn extra
endorsement added to policy for extra premium charge. It covers auto
rental
the expenses
insured incurs because the insured auto is unable to be driven due
to damage
covered under the insureds Physical Damage
coverage.
Peril correct answersAn event that causes damage and results in financial
loss (a claim)
Risk correct answersThe chance that something harmful or unexpected could
happena to
cause peril (a
claim)
Speculative Risk correct answersUncertainty about an event that could result
in either
profit or aa
loss
Pure Risk correct answersUncertainty to whether an event will occur to
cause a loss
Hazard correct answersA situation where it is more likely for a peril (a
claim) to occur
Indemnity correct answersCompensation payments made from the
insurance
to the insured
company
to compensate for
a loss
Insurable Interest correct answersReasonable concern for a person to obtain
insurance
against unforeseen events (death,
losses)
Actual Cash Value Coverage correct answersAmount of $ the insurance
company
pay to thewill
insured to cover the value of replacement cost minus damages
(depreciation)
at time of
loss
Replacement Cost correct answersAmount of $ the insurance company will
pay to the
insured to compensate value of similar or same
property
Negligence correct answersFailure to act in a reasonable/expected way that
results in a
los
s
Limits of Liability correct answersThe amount of money the insurance
company
if something willbad
pay happens to you or your
property
Supplemental Payments correct answersThings specified in auto policies that
insurance
company will pay for in addition to the auto policy limits of liability (first
appeal and bond
aid expenses,
expenses)
Burglary correct answersTheft of property from one premises to another
with forced
entry or
exit
Robbery correct answersTheft of property from one premises to another
by force
threat of or
force
, Theft correct answersIntent to steal property with intent to deprive
the owner
Bond correct answersA contract that guarantees a
promise
(Principal, Obligee,
Surety)
Fair Credit Reporting Act correct answersThe applicants right to information
their insurance
regarding
policies
Law of Torts correct answersLegal proceeding through which claims for
moneyinjuries
bodily for and/or property damage are
made.
Commercial General Liability Policy correct answersCovers liability for
business as well as new hazards arising during the policy term,
insured's
whether they
reported to the are
insurance company or not. The CGL policy covers legal
liability forofallthe
members
business.
Comprehensive (All-Risk) Coverage correct answersCovers all forms of
damageauto
insured to except those
excluded ***
Collision Coverage correct answersCovers damage to insured vehicle
caused by
collision or
upset
Auto Liability Coverage correct answersPays for all sums for which an
insured business
becomes legally responsible for bodily injuries, physical damage, and
caused to third
injuries/damage
parties.
Employer's Non-Ownership Liability Coverage correct answersProtects an
employer
against legal liability caused by an employee while driving an auto not
owned by the
employ
er
Auto Medical Payments Coverage correct answersCovers the insured and all
members
of his/her household if injured by any auto anywhere. It covers medical
expenses for
passengers of the insured auto. It pays whether the insured was legally
responsible for
Physical Damage Coverage correct answersFirst party coverage that covers
injuries or
damage
the
not. insured
to
vehicle
Transportation (Rental Reimbursement) Coverage correct
answersAn extra
endorsement added to policy for extra premium charge. It covers auto
rental
the expenses
insured incurs because the insured auto is unable to be driven due
to damage
covered under the insureds Physical Damage
coverage.
