UPDATE!!!2025/2026|GUARANTEED
Which must have an appointment? Consultant/producer/insured - ANSWER Producer
Define Pure Risk - ANSWER Chance of loss with no possibility of gain
The Law of Large Numbers says? - ANSWER Losses become more predictable as the
number of insureds increases
A broker represents? - ANSWER Insured
A Producer Represents? - ANSWER Insurer
Insurance is regulated at which level? State or Federal - ANSWER State
A peril is? - ANSWER Cause of loss
Limit of liability is? - ANSWER Maximum policy will pay for a loss
All - Risk - ANSWER Covers all perils but those listed in exclusions
What is a Hazard? - ANSWER Any factor that increases the chance of a loss occurring
What is a; rider, endorsement or extension? - ANSWER An addition to the policy
1
, What is inherent vice? - ANSWER Natural deterioration, exclusion
If Insurer cancels, the Insured is entitled to? - ANSWER Pr-rata fund
If the Insured cancels, the Insurer is entitled to? - ANSWER Short rate fund
Conditions Section of the policy contains? - ANSWER Insured's Obligations,
Declarations section of the policy lists? - ANSWER Information unique to the Insured's
policy
Insuring Agreements section contains? - ANSWER Contains the Insurer's obligations,
type of insurance provided
What is Consideration? - ANSWER The item of value that each party brings to the
contract
What is ACV equation? - ANSWER Replacement cost minus physical depreciation
Right of salvage gives the right to who? - ANSWER Gives the right to the Insurer
Replacement cost pays? - ANSWER The insured in full
HO 1 - ANSWER Basic coverage
HO 2 - ANSWER Broad form on both Buildings and personal property
2
Which must have an appointment? Consultant/producer/insured - ANSWER Producer
Define Pure Risk - ANSWER Chance of loss with no possibility of gain
The Law of Large Numbers says? - ANSWER Losses become more predictable as the
number of insureds increases
A broker represents? - ANSWER Insured
A Producer Represents? - ANSWER Insurer
Insurance is regulated at which level? State or Federal - ANSWER State
A peril is? - ANSWER Cause of loss
Limit of liability is? - ANSWER Maximum policy will pay for a loss
All - Risk - ANSWER Covers all perils but those listed in exclusions
What is a Hazard? - ANSWER Any factor that increases the chance of a loss occurring
What is a; rider, endorsement or extension? - ANSWER An addition to the policy
1
, What is inherent vice? - ANSWER Natural deterioration, exclusion
If Insurer cancels, the Insured is entitled to? - ANSWER Pr-rata fund
If the Insured cancels, the Insurer is entitled to? - ANSWER Short rate fund
Conditions Section of the policy contains? - ANSWER Insured's Obligations,
Declarations section of the policy lists? - ANSWER Information unique to the Insured's
policy
Insuring Agreements section contains? - ANSWER Contains the Insurer's obligations,
type of insurance provided
What is Consideration? - ANSWER The item of value that each party brings to the
contract
What is ACV equation? - ANSWER Replacement cost minus physical depreciation
Right of salvage gives the right to who? - ANSWER Gives the right to the Insurer
Replacement cost pays? - ANSWER The insured in full
HO 1 - ANSWER Basic coverage
HO 2 - ANSWER Broad form on both Buildings and personal property
2
