Maine Property and Casualty Insurance Exam [ACTUAL EXAM]
LATEST VERSION [QUESTIONS AND ANSWERS] WITH
PRACTICE EXAM DETAILED AND VERIFIED FOR
GUARANTEED PASS- LATEST UPDATE 2025 GRADED A
Maine Property & Casualty Insurance Exam – Test Bank & Practice Pack
Pass the Maine Property and Casualty Insurance Exam with confidence using the latest
2025
updated prep package. Includes actual exam questions and answers, a full practice
exam, and
detailed explanations—all verified and graded A for accuracy. Designed to ensure a
guaranteed pass on your first attempt.
Features:
• Covers all Maine state-specific and national insurance topics
• Latest 2025 edition – fully updated content
• 100% verified questions & answers
• Detailed rationales for every answer
• Full practice exam for realistic preparation
Speculative - KEY TERM possibility of both gain and loss. Not insurable.
Pure - KEY TERM only the possibility of loss. Insurable.
What are the 5 methods of managing or handling risk? - KEY TERM avoid, control,
retain, and transfer risk.
Hazard - KEY TERM A condition or situation which increases the chance for loss
Physical Hazards - KEY TERM a hazard that arises from the condition, occupancy, or
use of the property itself.
ex: skateboard left on the steps
Moral Hazards - KEY TERM when an individual through carelessness or by
irresponsible actions can increase the possibly for a loss.
ex: person who drives carelessly just because they know they are insured.
,Morale Hazards - KEY TERM when a person might create a loss situation on purpose
just to collect from the insurance company.
ex: Prearranged, faked theft of someone's old vehicle so they can get an insurance
payout to buy a new vehicle.
Replacement Cost - KEY TERM The amount of money it would take to replace a
damaged or destroyed item with one of like kind and quality AT THE TIME OF LOSS.
No deduction for depreciation.
Actual Cash Value (ACV) - KEY TERM Replacement Cost, minus depreciation.
Pair and Set Clause - KEY TERM Loss to one item of a pair or set does not constitute
loss to the entire pair or set.
Appraisal - KEY TERM A method of resolving disputes between insurers and insureds
over the amount owed on a covered loss.
-both parties select an appraiser
-the two appraisers select an umpire
-if the appraisers do not agree, the umpire is consulted
-the amount agreed on by 2 out of 3 is the amount that will be paid
Subrogation - KEY TERM An insurer's right to recover the amount of its loss payment
from the third party who is legally responsible for the loss.
Arbitration - KEY TERM this condition is similar to the Appraisal Condition but it is not
limited to disputes over the value of the loss. It may also be used to resolve other areas
of disagreement between the insured and the insurance company.
What does WC SHAVVER stand for? - KEY TERM Windstorm, Civil commotion,
Smoke, Hail, Aircraft, Vehicles, Volcanic eruption, Explosion, Riot
What does BIG AFFECT stand for? - KEY TERM Burglar damage, Ice & snow weight,
Glass breakage, Accidental discharge, Falling objects, Freezing of pipes, Electrical
damage, Collapse, Tearing apart.
Insolvency - KEY TERM A financial state that occurs if liabilities are greater than assets.
Law of Agency - KEY TERM Knowledge of the Agents is Knowledge of the Principal
(Insurance Company)
Principal - KEY TERM Insurance Company
What is the ISO? - KEY TERM Insurance Services Office which is an organization
established for the benefit of its member insurance companies. This organization
, gathers statistics, provides loss costs, drafts policy forms and coverage provisions and
conducts inspections for rate making purposes.
Coinsurance Clause - KEY TERM Requires the insured to carry a minimum specified
amount (generally 80%) of the replacement cost value of the insured property in order
for partial losses to be paid in full.
Estoppel - KEY TERM A legal bar to changing or denying a fact because of one's own
previous actions or words to the contrary.
ex: If an insurance company representative intentionally or unintentionally gives the
impression that a specific fact exists when it does not and a client relies on that
impression and is damaged a result.
Binder - KEY TERM A temporary contract of insurance, oral or written, offered by an
insurer pending issuance of the policy. Usually written for a period of 30-60 days and
remains in force for that period or until a permanent policy is either issued or denied by
the insurer.
Warranty - KEY TERM A provision in a policy that pledges that a condition does exist or
will exist at some time in the future.
Deposit Premium - KEY TERM Tentative charge made at the beginning of certain
policies and reinsurance agreements to be adjusted when the actual earned charge has
been later determined.
Audit - KEY TERM Verification of books or accounts to determine their accuracy.
Occurrence - KEY TERM An accident, including continuous or repeated exposure to the
same harmful conditions, which result in bodily injury or property damage.
Special Damages - KEY TERM type of compensatory damages that reimburse the
injured part for direct and specific expenses involved in the loss. Such as medical
expenses, funeral expenses and loss wages.
General Damages - KEY TERM type of compensatory damages that reimburse the
injured party for such things as pain and suffering and disfigurement.
Punitive Damages - KEY TERM type of damages intended to punish the defendant and
make an example out of her to discourage others from behaving the same way.
Proximate Cause - KEY TERM An act, through an uniterrupted chain of events, that can
be determined to be the immediate or actual cause of a loss.
4 elements of negligence - KEY TERM 1. The existence of a DUTY to act in a certain
way
LATEST VERSION [QUESTIONS AND ANSWERS] WITH
PRACTICE EXAM DETAILED AND VERIFIED FOR
GUARANTEED PASS- LATEST UPDATE 2025 GRADED A
Maine Property & Casualty Insurance Exam – Test Bank & Practice Pack
Pass the Maine Property and Casualty Insurance Exam with confidence using the latest
2025
updated prep package. Includes actual exam questions and answers, a full practice
exam, and
detailed explanations—all verified and graded A for accuracy. Designed to ensure a
guaranteed pass on your first attempt.
Features:
• Covers all Maine state-specific and national insurance topics
• Latest 2025 edition – fully updated content
• 100% verified questions & answers
• Detailed rationales for every answer
• Full practice exam for realistic preparation
Speculative - KEY TERM possibility of both gain and loss. Not insurable.
Pure - KEY TERM only the possibility of loss. Insurable.
What are the 5 methods of managing or handling risk? - KEY TERM avoid, control,
retain, and transfer risk.
Hazard - KEY TERM A condition or situation which increases the chance for loss
Physical Hazards - KEY TERM a hazard that arises from the condition, occupancy, or
use of the property itself.
ex: skateboard left on the steps
Moral Hazards - KEY TERM when an individual through carelessness or by
irresponsible actions can increase the possibly for a loss.
ex: person who drives carelessly just because they know they are insured.
,Morale Hazards - KEY TERM when a person might create a loss situation on purpose
just to collect from the insurance company.
ex: Prearranged, faked theft of someone's old vehicle so they can get an insurance
payout to buy a new vehicle.
Replacement Cost - KEY TERM The amount of money it would take to replace a
damaged or destroyed item with one of like kind and quality AT THE TIME OF LOSS.
No deduction for depreciation.
Actual Cash Value (ACV) - KEY TERM Replacement Cost, minus depreciation.
Pair and Set Clause - KEY TERM Loss to one item of a pair or set does not constitute
loss to the entire pair or set.
Appraisal - KEY TERM A method of resolving disputes between insurers and insureds
over the amount owed on a covered loss.
-both parties select an appraiser
-the two appraisers select an umpire
-if the appraisers do not agree, the umpire is consulted
-the amount agreed on by 2 out of 3 is the amount that will be paid
Subrogation - KEY TERM An insurer's right to recover the amount of its loss payment
from the third party who is legally responsible for the loss.
Arbitration - KEY TERM this condition is similar to the Appraisal Condition but it is not
limited to disputes over the value of the loss. It may also be used to resolve other areas
of disagreement between the insured and the insurance company.
What does WC SHAVVER stand for? - KEY TERM Windstorm, Civil commotion,
Smoke, Hail, Aircraft, Vehicles, Volcanic eruption, Explosion, Riot
What does BIG AFFECT stand for? - KEY TERM Burglar damage, Ice & snow weight,
Glass breakage, Accidental discharge, Falling objects, Freezing of pipes, Electrical
damage, Collapse, Tearing apart.
Insolvency - KEY TERM A financial state that occurs if liabilities are greater than assets.
Law of Agency - KEY TERM Knowledge of the Agents is Knowledge of the Principal
(Insurance Company)
Principal - KEY TERM Insurance Company
What is the ISO? - KEY TERM Insurance Services Office which is an organization
established for the benefit of its member insurance companies. This organization
, gathers statistics, provides loss costs, drafts policy forms and coverage provisions and
conducts inspections for rate making purposes.
Coinsurance Clause - KEY TERM Requires the insured to carry a minimum specified
amount (generally 80%) of the replacement cost value of the insured property in order
for partial losses to be paid in full.
Estoppel - KEY TERM A legal bar to changing or denying a fact because of one's own
previous actions or words to the contrary.
ex: If an insurance company representative intentionally or unintentionally gives the
impression that a specific fact exists when it does not and a client relies on that
impression and is damaged a result.
Binder - KEY TERM A temporary contract of insurance, oral or written, offered by an
insurer pending issuance of the policy. Usually written for a period of 30-60 days and
remains in force for that period or until a permanent policy is either issued or denied by
the insurer.
Warranty - KEY TERM A provision in a policy that pledges that a condition does exist or
will exist at some time in the future.
Deposit Premium - KEY TERM Tentative charge made at the beginning of certain
policies and reinsurance agreements to be adjusted when the actual earned charge has
been later determined.
Audit - KEY TERM Verification of books or accounts to determine their accuracy.
Occurrence - KEY TERM An accident, including continuous or repeated exposure to the
same harmful conditions, which result in bodily injury or property damage.
Special Damages - KEY TERM type of compensatory damages that reimburse the
injured part for direct and specific expenses involved in the loss. Such as medical
expenses, funeral expenses and loss wages.
General Damages - KEY TERM type of compensatory damages that reimburse the
injured party for such things as pain and suffering and disfigurement.
Punitive Damages - KEY TERM type of damages intended to punish the defendant and
make an example out of her to discourage others from behaving the same way.
Proximate Cause - KEY TERM An act, through an uniterrupted chain of events, that can
be determined to be the immediate or actual cause of a loss.
4 elements of negligence - KEY TERM 1. The existence of a DUTY to act in a certain
way
