Property and Casualty Chapter 1 Exam
Questions and Answers
When an insurance company pays a policy owner on a claim, the company is said to
have _____ the insured. - Answer- Indemnified
The stated maximum that an insurance company will pay on a claim is called the _____.
- Answer- Limit of liability
Losses that are specifically NOT covered by an insurance policy are called _____. -
Answer- Exclusions
Iron rusts. Cheese turns moldy. In insurance lingo, these latent defects are called ____.
- Answer- Inherent vice.
In proportion, share or ratio is called ____. - Answer- Pro rata.
The promise in your P and C policy, which states that modifications that make the
contract more generous and put into effect during the policy period will be automatic
enhancements to your policy, is found in the _____ clause. - Answer- Liberalization
The transfer of ownership of an insurance policy from one individual to another is called
_____. - Answer- Assignment
The refusal of an insurer to continue insurance coverage beyond the end of the policy
period is called ____. - Answer- Non-renewal.
The termination of an insurance policy during the policy period by either the insurance
company or the insured is called _____. - Answer- Cancellation
If the insurance company cancels a policy, then the customer is entitled to a ____
refund of premium - Answer- Pro rata
If an insured cancels his/her commercial policy, then they are only entitled to a ____
refund of premium. - Answer- Short rate
In addition to the policy, written proof of insurance coverage is provided by a _____. -
Answer- Certificate of insurance
A written modification or addition to a policy of insurance is called an ______. - Answer-
Endorsement
Questions and Answers
When an insurance company pays a policy owner on a claim, the company is said to
have _____ the insured. - Answer- Indemnified
The stated maximum that an insurance company will pay on a claim is called the _____.
- Answer- Limit of liability
Losses that are specifically NOT covered by an insurance policy are called _____. -
Answer- Exclusions
Iron rusts. Cheese turns moldy. In insurance lingo, these latent defects are called ____.
- Answer- Inherent vice.
In proportion, share or ratio is called ____. - Answer- Pro rata.
The promise in your P and C policy, which states that modifications that make the
contract more generous and put into effect during the policy period will be automatic
enhancements to your policy, is found in the _____ clause. - Answer- Liberalization
The transfer of ownership of an insurance policy from one individual to another is called
_____. - Answer- Assignment
The refusal of an insurer to continue insurance coverage beyond the end of the policy
period is called ____. - Answer- Non-renewal.
The termination of an insurance policy during the policy period by either the insurance
company or the insured is called _____. - Answer- Cancellation
If the insurance company cancels a policy, then the customer is entitled to a ____
refund of premium - Answer- Pro rata
If an insured cancels his/her commercial policy, then they are only entitled to a ____
refund of premium. - Answer- Short rate
In addition to the policy, written proof of insurance coverage is provided by a _____. -
Answer- Certificate of insurance
A written modification or addition to a policy of insurance is called an ______. - Answer-
Endorsement
