ARKANSAS PROPERTY AND CASUALTY
INSURANCE EXAM 2024/2025 COMPLETE
QUESTIONS WITH DETAILED VERIFIED ANSWERS
GET IT RIGHT GRADED A+
Endorsements (The wording in an endorsement takes precedence over the
wording in the policy to which it is attached. Some add exclusions; others clarify
or enlarge the coverage provided in the basic policy) - ans -An attachment to an
insurance policy that modifies its coverage in some way.
Policy Conditions (Many policies conditions deal with practical issues concerning
who is covered, during what periods coverage applies, and where coverage
applies. Some address the amount and how the insurer must pay for a covered
loss. Others describe the duties of the insured and the duties of the insurer when
a covered loss occurs) - ans -The section of the insurance policy that identifies
general requirements of an insured and the insurer on matters such as loss
reporting and settlement, property valuation, cancellation and nonrenewable,
and so forth.
Superior Construction (The three types of superior construction are
noncombustible, masonry noncombustible, and fire resistive (i.e., the exterior
walls, floors, and roof are noncombustible, but the frame may be wood). Fire
insurance rates are lowest with superior construction than with any other type of
construction) - ans -A type of building construction in which the building's exterior
walls, floors, and roof are constructed of noncombustible material.
Proximate Cause (The three types of superior construction are noncombustible,
masonry noncombustible, and fire resistive (i.e., the exterior walls, floors, and
roof are noncombustible, but the frame may be wood). Fire insurance rates are
lowest with superior construction than with any other type of construction) - ans -
The cause of having the most significant impact in bringing about the loss when
two or more independent perils operate at the same time (i.e., concurrently) to
produce a lost.
Replacement Cost valuation (the replacement cost valuation method is commonly
used in the valuing houses and commercial buildings) - ans -A property insurance
, loss valuation method that bases benefits on the cost to replace the damaged or
destroyed property
Agency Report (usually required for larger commercial accounts, the agency
report describes the applicant's business, personal interests, loss-prevention
controls, and other data useful in assessing the applicant's risk) - ans -A report an
agent prepares that presents information about the applicant not contained on
the application but that the underwriter may find useful
Inspection Report (An inspection report summarizes the condition, size, shape,
and special features of the personal or real property to be insured. A personal
auto report might include information on young drivers and the condition of the
vehicle) - ans -A report, by an insurer or one of a number of inspection services
available, assessing the moral, financial, and physical aspects of a risk
Policy Cancellation (either the insurer or the insured may initiate a cancellation.
Policy provisions describe when, how, and by whom the insurance contract may
be canceled and for what reasons) - ans -The termination of an insurance policy
before its normal expiration date
Comparative Negligence (in determining an injury award, the jury compares the
negligence of the plaintiff (claimant) against the negligence of the defendant
(insured) in an accident. If the jury finds that the plaintiff was 30 percent at fault,
then the plaintiff might recover only 70 percent of his damages) - ans -A method
by which juries determine the percentage of fault each party bears in an injury-
producing accident
Loss Valuation (The most commonly used valuation methods are: replacement
cost, actual cash value (ACV), functional replacement cost, market value, stated
amount, agreed value) - ans -The process by which insurers, using any of several
different methods, measure the value of a loss
Loss Payable Clause (Under a typical loss playable clause, the insurer is under no
obligation to make payment to the loss payee if payment for a loss can be denied
to the insured) - ans -A property insurance provision authorizing payment, in the
event of loss, to a personal entity having an insurable interest in the covered
property other than the named insured
INSURANCE EXAM 2024/2025 COMPLETE
QUESTIONS WITH DETAILED VERIFIED ANSWERS
GET IT RIGHT GRADED A+
Endorsements (The wording in an endorsement takes precedence over the
wording in the policy to which it is attached. Some add exclusions; others clarify
or enlarge the coverage provided in the basic policy) - ans -An attachment to an
insurance policy that modifies its coverage in some way.
Policy Conditions (Many policies conditions deal with practical issues concerning
who is covered, during what periods coverage applies, and where coverage
applies. Some address the amount and how the insurer must pay for a covered
loss. Others describe the duties of the insured and the duties of the insurer when
a covered loss occurs) - ans -The section of the insurance policy that identifies
general requirements of an insured and the insurer on matters such as loss
reporting and settlement, property valuation, cancellation and nonrenewable,
and so forth.
Superior Construction (The three types of superior construction are
noncombustible, masonry noncombustible, and fire resistive (i.e., the exterior
walls, floors, and roof are noncombustible, but the frame may be wood). Fire
insurance rates are lowest with superior construction than with any other type of
construction) - ans -A type of building construction in which the building's exterior
walls, floors, and roof are constructed of noncombustible material.
Proximate Cause (The three types of superior construction are noncombustible,
masonry noncombustible, and fire resistive (i.e., the exterior walls, floors, and
roof are noncombustible, but the frame may be wood). Fire insurance rates are
lowest with superior construction than with any other type of construction) - ans -
The cause of having the most significant impact in bringing about the loss when
two or more independent perils operate at the same time (i.e., concurrently) to
produce a lost.
Replacement Cost valuation (the replacement cost valuation method is commonly
used in the valuing houses and commercial buildings) - ans -A property insurance
, loss valuation method that bases benefits on the cost to replace the damaged or
destroyed property
Agency Report (usually required for larger commercial accounts, the agency
report describes the applicant's business, personal interests, loss-prevention
controls, and other data useful in assessing the applicant's risk) - ans -A report an
agent prepares that presents information about the applicant not contained on
the application but that the underwriter may find useful
Inspection Report (An inspection report summarizes the condition, size, shape,
and special features of the personal or real property to be insured. A personal
auto report might include information on young drivers and the condition of the
vehicle) - ans -A report, by an insurer or one of a number of inspection services
available, assessing the moral, financial, and physical aspects of a risk
Policy Cancellation (either the insurer or the insured may initiate a cancellation.
Policy provisions describe when, how, and by whom the insurance contract may
be canceled and for what reasons) - ans -The termination of an insurance policy
before its normal expiration date
Comparative Negligence (in determining an injury award, the jury compares the
negligence of the plaintiff (claimant) against the negligence of the defendant
(insured) in an accident. If the jury finds that the plaintiff was 30 percent at fault,
then the plaintiff might recover only 70 percent of his damages) - ans -A method
by which juries determine the percentage of fault each party bears in an injury-
producing accident
Loss Valuation (The most commonly used valuation methods are: replacement
cost, actual cash value (ACV), functional replacement cost, market value, stated
amount, agreed value) - ans -The process by which insurers, using any of several
different methods, measure the value of a loss
Loss Payable Clause (Under a typical loss playable clause, the insurer is under no
obligation to make payment to the loss payee if payment for a loss can be denied
to the insured) - ans -A property insurance provision authorizing payment, in the
event of loss, to a personal entity having an insurable interest in the covered
property other than the named insured
