Property/Casualty Illinois for State Exam /
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ISO (Insurance Services ISO creates standardized property and casualty
Office) insurance policies that are approved by states and used
as a standard policy for insurers.
-they can be modified to comply with state regulations
-may be modified to a degree for insurance companies to
create their own policy form
Insurance transfers the risk of loss from an individual or
define insurance business entity to an insurance company, which in turn
spreads the costs of unexpected losses to many individuals
,define risk uncertainty concerning the occurrence of a loss
What are the 2 types of Pure and Speculative
risk?
What is the difference only pure risk is insurable since it can only result in a loss or
between pure and no change
speculative risk?
speculative risk is not insurable since it can result in a loss or
gain (like gambling)
What are the 3 types of 1) Physical - hazards arising from the material,structural, or
hazards? operational features
2) Moral - refers to applicants that may lie on theirapplication
3) Morale - increase the hazard presented by a riskarising
from the insured's indifference to loss because of the
existence of insurance (combustible material near a furnace)
peril causes of loss
hazards conditions/circumstances that increase the probability of an
insured loss occurring
there are 3 types
direct loss direct physical damage to buildings/personal property
*this includes proximate cause: chain of events resulting
from a covered peril
indirect losses considered a result of direct loss; this usually results
loss/consequential losses from when repairs begin so it could be additional living
expenses for homeowners or loss of profits for businesses
named peril lists of specific perils; no coverage for unlisted perils
, open perils (all risk) insures against any risk of loss that is not excluded
Explain the difference vacancy refers to a property that has no people or personal
between vacancy and property in it for 60 days
unoccupied
unoccupied refers to a property that has no people in it but
there is personal property in it
3 elements of insurable risk 1. Financial (a monetary interest)
2. Blood (a relative)
3. Business (a business partner)
indemnity to reimburse or make whole; permitted to collect only to the
extent of financial loss (cannot gain)
subrogation The process by which an insurer can, after it has paid a loss
under the policy, recover the amount paid from any party
(other than the insured) who caused the loss or is otherwise
legally liable for the loss.
Accident vs. Occurrence an accident is a sudden, unplanned and unexpected event
not under the control of the insured and results in
injury/damage that is not intended/expected
an occurrence includes losses caused by continuous or
repeated exposure to conditions resulting in injury to
persons or damage to property that is neither intended nor
expected
BLANKET VS SPECIFIC BLANKET COVERAGE-provides coverage for different classes of
property under one policy
SPECIFIC INSURANCE-is when you insure a specific item or
specific kind of property
Actual Exam Questions with Certified
Solutions / Newest
Practice questions for this set
Learn
Studie terms
Nice work, you're crushing it
Continue studying in Learn
Terms in this set (140)
ISO (Insurance Services ISO creates standardized property and casualty
Office) insurance policies that are approved by states and used
as a standard policy for insurers.
-they can be modified to comply with state regulations
-may be modified to a degree for insurance companies to
create their own policy form
Insurance transfers the risk of loss from an individual or
define insurance business entity to an insurance company, which in turn
spreads the costs of unexpected losses to many individuals
,define risk uncertainty concerning the occurrence of a loss
What are the 2 types of Pure and Speculative
risk?
What is the difference only pure risk is insurable since it can only result in a loss or
between pure and no change
speculative risk?
speculative risk is not insurable since it can result in a loss or
gain (like gambling)
What are the 3 types of 1) Physical - hazards arising from the material,structural, or
hazards? operational features
2) Moral - refers to applicants that may lie on theirapplication
3) Morale - increase the hazard presented by a riskarising
from the insured's indifference to loss because of the
existence of insurance (combustible material near a furnace)
peril causes of loss
hazards conditions/circumstances that increase the probability of an
insured loss occurring
there are 3 types
direct loss direct physical damage to buildings/personal property
*this includes proximate cause: chain of events resulting
from a covered peril
indirect losses considered a result of direct loss; this usually results
loss/consequential losses from when repairs begin so it could be additional living
expenses for homeowners or loss of profits for businesses
named peril lists of specific perils; no coverage for unlisted perils
, open perils (all risk) insures against any risk of loss that is not excluded
Explain the difference vacancy refers to a property that has no people or personal
between vacancy and property in it for 60 days
unoccupied
unoccupied refers to a property that has no people in it but
there is personal property in it
3 elements of insurable risk 1. Financial (a monetary interest)
2. Blood (a relative)
3. Business (a business partner)
indemnity to reimburse or make whole; permitted to collect only to the
extent of financial loss (cannot gain)
subrogation The process by which an insurer can, after it has paid a loss
under the policy, recover the amount paid from any party
(other than the insured) who caused the loss or is otherwise
legally liable for the loss.
Accident vs. Occurrence an accident is a sudden, unplanned and unexpected event
not under the control of the insured and results in
injury/damage that is not intended/expected
an occurrence includes losses caused by continuous or
repeated exposure to conditions resulting in injury to
persons or damage to property that is neither intended nor
expected
BLANKET VS SPECIFIC BLANKET COVERAGE-provides coverage for different classes of
property under one policy
SPECIFIC INSURANCE-is when you insure a specific item or
specific kind of property
