PA PROPERTY AND CASUALTY
INSURANCE EXAM Q AND A
Propertyvy-vyanswer--youvycanvypossess/vyphysicallyvytouch
BIvy-vyanswer--bodilyvyinjury
PDvy-vyanswer--Propertyvydamage
Liability/casualtyvy-vyanswer--whatvyyouvypayvythevyothervyguy
personalvylinesvyinsurancevy-vyanswer--
covervyneedsvyofvyindividualvyorvyfamilyvy(auto,boat,camper,rv)
commercialvylinesvyinsurancevy-vyanswer--needsvyofvyavybusiness
directvylossvy-vyanswer--examplevy-vyhousevyburnsvydown
indirectvylossvy-vyanswer--examplevy-
vyadditionalvymoneyvyyouvywillvyhavevytovyspendvytovylivevysomewherevyelsevywhilevyhousevyi
svybeingvyrebuilt.vyOutvyofvypocketvyexpenses.
indemnifyvy-vyanswer--tovymakevywholevyagainvy-vynovybettervynovyworse
predeterminedvylossvylimitvy-vyanswer--basedvyuponvythevyrulevyofvythevy4Lsvy-
vyyouvygetvythevylowervyofvythevylossvyorvythevylimitvyupvytovythevylevelvyofvyyourvyinsurablevylos
s.
inherentvyvicevy-vyanswer--
lossvyresultsvyfromvyanvyinherentvypropertyvynotvyfortuitous,vynotvycovered
CPCvy-vyanswer--catastrophic,vypredictable,vycoveredvyelsewhere
endorsementvy-vyanswer--
writtenvymodificationvytovyyourvypolicyvydesignedvytovyaccommodatevyyourvyspecificvyneed
svy-vysometimesvycalledvyavyrider
mutualvycompanyvy-vyanswer--earningvycalledvysurplus,vynotvytaxable,vydividend
reinsurancevytreatyvy-vyanswer--
%vyriskvytransferredvyandvyfeesvyinvolvedvyforvyentirevyclass
surplusvylinesvyproducervy-vyanswer--
agentvyauthorizedvytovysellvycontractsvyfromvynonadmittedvycompanyvyifvydesiredvypolicyvyi
svyunavailablevyfromvyadmittedvycompany
, considerationvy-vyanswer--acceptancevyandvyoffer
aleatoryvy-vyanswer--
notvynecessarilyvyequalvyduevytovyuncertainvytimingvyofvyeventvywhichvyisvythevysubjectvyofvyc
ontract
unilateralvy-vyanswer--onevypromiser
negativevydatavythatvytheyvycanvyusevyagainstvyyouvy-vyanswer--upvytovysevenvyyears
Upvytovyhowvymanyvyyearsvycanvytheyvyusevybankruptcyvyagainstvyyou?vy-vyanswer--
10vyyears
Largestvyofvythesevyratingsvybureausvy-vyanswer--Insurancevyservicesvyoffice
premiumvycalculationvy-vyanswer--multiplyvythevyunitsvyofvyexposure.vyexamplevy-
vyratevyisvy2.25$vypervysqvyft,vyannualvypremiumvyisvy10,000vysqvyftvy=vy2.25vyxvy10,000vy=vy22
,500vysqvyft
meritvyratesvy-vyanswer--
customizedvyclassvyratesvybasedvyuponvyphysicalvycharacteristicsvyorvymodificationsvytovy
exposurevyorvylossvyexperience
schedulevyratingvy-vyanswer--lowervyratingvyforvyavybuildingvyjustvyupdated
experiencevyratingvy-vyanswer--add/
subtractvyfromvyclassvyratesvybasedvyuponvyactualvylossvyofvyexposure
expensevyratiovy-vyanswer--expensesvytovypremium
estoppelvy-vyanswer--
youvycanvybevyestoppedvyfromvyexercisingvywhatvyyouvyhavevycontinuouslyvywaived
DICEvy-vyanswer--declarations,vyinsuringvyclause,vyconditions,vyexclusions
abandonmentvy-vyanswer--
anvyattemptvybyvyanvyinsuredvytovyreceivevyfullvyvaluevyforvyavypartiallyvydamagedvyitemvybyvy
offeringvythevydamagedvypropertyvytovythevyinsurancevycompany.vyThevycompanyvyisvyund
ervynovyobligationvytovypayvyforvyabandonedvyproperty.
salvagevy-vyanswer--
companyvygainsvyownershipvyofvyitem,vyhavevythevyrightvytovyrecoupvysomevyofvytheirvyoutla
y...salvage
FLEWvyRVVVSSSvy-vyanswer--fire,vylightning,vyexplosion,vywindstorm/
hail,vyriot,vyvandalism(willvycovervyburglarvydamage),vyvolcanicvyaction,vysmoke,vysprinkler
vyleakage,vysinkholevycollapse
liabilityvycoveragevy-vyanswer--NEVERvypayvyyouvy-vyalwaysvythevyothervyguy
INSURANCE EXAM Q AND A
Propertyvy-vyanswer--youvycanvypossess/vyphysicallyvytouch
BIvy-vyanswer--bodilyvyinjury
PDvy-vyanswer--Propertyvydamage
Liability/casualtyvy-vyanswer--whatvyyouvypayvythevyothervyguy
personalvylinesvyinsurancevy-vyanswer--
covervyneedsvyofvyindividualvyorvyfamilyvy(auto,boat,camper,rv)
commercialvylinesvyinsurancevy-vyanswer--needsvyofvyavybusiness
directvylossvy-vyanswer--examplevy-vyhousevyburnsvydown
indirectvylossvy-vyanswer--examplevy-
vyadditionalvymoneyvyyouvywillvyhavevytovyspendvytovylivevysomewherevyelsevywhilevyhousevyi
svybeingvyrebuilt.vyOutvyofvypocketvyexpenses.
indemnifyvy-vyanswer--tovymakevywholevyagainvy-vynovybettervynovyworse
predeterminedvylossvylimitvy-vyanswer--basedvyuponvythevyrulevyofvythevy4Lsvy-
vyyouvygetvythevylowervyofvythevylossvyorvythevylimitvyupvytovythevylevelvyofvyyourvyinsurablevylos
s.
inherentvyvicevy-vyanswer--
lossvyresultsvyfromvyanvyinherentvypropertyvynotvyfortuitous,vynotvycovered
CPCvy-vyanswer--catastrophic,vypredictable,vycoveredvyelsewhere
endorsementvy-vyanswer--
writtenvymodificationvytovyyourvypolicyvydesignedvytovyaccommodatevyyourvyspecificvyneed
svy-vysometimesvycalledvyavyrider
mutualvycompanyvy-vyanswer--earningvycalledvysurplus,vynotvytaxable,vydividend
reinsurancevytreatyvy-vyanswer--
%vyriskvytransferredvyandvyfeesvyinvolvedvyforvyentirevyclass
surplusvylinesvyproducervy-vyanswer--
agentvyauthorizedvytovysellvycontractsvyfromvynonadmittedvycompanyvyifvydesiredvypolicyvyi
svyunavailablevyfromvyadmittedvycompany
, considerationvy-vyanswer--acceptancevyandvyoffer
aleatoryvy-vyanswer--
notvynecessarilyvyequalvyduevytovyuncertainvytimingvyofvyeventvywhichvyisvythevysubjectvyofvyc
ontract
unilateralvy-vyanswer--onevypromiser
negativevydatavythatvytheyvycanvyusevyagainstvyyouvy-vyanswer--upvytovysevenvyyears
Upvytovyhowvymanyvyyearsvycanvytheyvyusevybankruptcyvyagainstvyyou?vy-vyanswer--
10vyyears
Largestvyofvythesevyratingsvybureausvy-vyanswer--Insurancevyservicesvyoffice
premiumvycalculationvy-vyanswer--multiplyvythevyunitsvyofvyexposure.vyexamplevy-
vyratevyisvy2.25$vypervysqvyft,vyannualvypremiumvyisvy10,000vysqvyftvy=vy2.25vyxvy10,000vy=vy22
,500vysqvyft
meritvyratesvy-vyanswer--
customizedvyclassvyratesvybasedvyuponvyphysicalvycharacteristicsvyorvymodificationsvytovy
exposurevyorvylossvyexperience
schedulevyratingvy-vyanswer--lowervyratingvyforvyavybuildingvyjustvyupdated
experiencevyratingvy-vyanswer--add/
subtractvyfromvyclassvyratesvybasedvyuponvyactualvylossvyofvyexposure
expensevyratiovy-vyanswer--expensesvytovypremium
estoppelvy-vyanswer--
youvycanvybevyestoppedvyfromvyexercisingvywhatvyyouvyhavevycontinuouslyvywaived
DICEvy-vyanswer--declarations,vyinsuringvyclause,vyconditions,vyexclusions
abandonmentvy-vyanswer--
anvyattemptvybyvyanvyinsuredvytovyreceivevyfullvyvaluevyforvyavypartiallyvydamagedvyitemvybyvy
offeringvythevydamagedvypropertyvytovythevyinsurancevycompany.vyThevycompanyvyisvyund
ervynovyobligationvytovypayvyforvyabandonedvyproperty.
salvagevy-vyanswer--
companyvygainsvyownershipvyofvyitem,vyhavevythevyrightvytovyrecoupvysomevyofvytheirvyoutla
y...salvage
FLEWvyRVVVSSSvy-vyanswer--fire,vylightning,vyexplosion,vywindstorm/
hail,vyriot,vyvandalism(willvycovervyburglarvydamage),vyvolcanicvyaction,vysmoke,vysprinkler
vyleakage,vysinkholevycollapse
liabilityvycoveragevy-vyanswer--NEVERvypayvyyouvy-vyalwaysvythevyothervyguy
