SC P&C INSURANCE UPDATED EXAMS
COMPREHENSIVE QUESTIONS AND ANSWERS
SURE A+
✔✔Legal Liability - ✔✔a liability under the law that occurs when a person is responsible
for injuries or damages to another due to negligence
✔✔Liability - ✔✔responsibility under the law
✔✔Liberalization - ✔✔a property insurance clause that extends broader legislated or
regulated coverage to current policies, as long as it does not result in a higher premium
✔✔Lien - ✔✔a charge, security, or encumbrance on a property
✔✔Limit of Liability - ✔✔the maximum amount for which an insured is liable
✔✔Lloyd's Association - ✔✔organizations that provide support facilities for underwriters
or groups of idividuals that accept insurance risk
✔✔Loss - ✔✔the reduction, decrease or disappearance of value of the person or
property insured in a policy by a peril insured against
, ✔✔Loss Payable Clause - ✔✔An insurance provision authorizing payment in the event
of loss to a person or entity other than the named insured having an insurable interest in
the covered property
✔✔Loss Ratio - ✔✔a calculation used by insurance companies to relate income from
loss expenses (incurred losses + loss adjusting expense) / earned premium =?
✔✔Loss Valuation - ✔✔a factor in determining the premium charged and the amount of
insurance required
✔✔Market Value - ✔✔a seldom used method of valuing a loss based upon the amount
a willing buyer would pay to a willing seller for the property prior to loss
✔✔Misrepresentation - ✔✔a false statement or lie that can render a contract void
✔✔Monoline Policy - ✔✔a policy written separately as a single coverage
✔✔Mutual Assesment Insurer - ✔✔a mutual insurance company with thre right to
assess a policy holder's additional amounts of mremium to meet operational needs
✔✔Mutual Companies - ✔✔insurance organizations that have no capital stock, but are
owned by the policy holders
✔✔Mysterious Disappearance - ✔✔a dissapearance of property tha cannot be
explained as to the location, time or manner of the property loss
✔✔Named Insured - ✔✔the individual(s) whose name appears on the policy's
decleration
✔✔Named Peril - ✔✔the cause of loss specifically covered by the insurance policy. no
coverage for unlisted perils
✔✔Negligence - ✔✔the failure to use the care that a reasonable prudent person would
under the same circumstances
✔✔No benefit to bailee - ✔✔a provision that includes any assignment or granting of any
policy provision to any person or organization holding, storing, repairing, or moving
isnured property for a fee
✔✔Nonadmitted insurer - ✔✔an insurance company that has not applied, or has
applied and been denied a certificate of authority and may not transact insurance
✔✔Nonrenewal - ✔✔a termination of a policy by an insurer on the anniversary or
renewal date
COMPREHENSIVE QUESTIONS AND ANSWERS
SURE A+
✔✔Legal Liability - ✔✔a liability under the law that occurs when a person is responsible
for injuries or damages to another due to negligence
✔✔Liability - ✔✔responsibility under the law
✔✔Liberalization - ✔✔a property insurance clause that extends broader legislated or
regulated coverage to current policies, as long as it does not result in a higher premium
✔✔Lien - ✔✔a charge, security, or encumbrance on a property
✔✔Limit of Liability - ✔✔the maximum amount for which an insured is liable
✔✔Lloyd's Association - ✔✔organizations that provide support facilities for underwriters
or groups of idividuals that accept insurance risk
✔✔Loss - ✔✔the reduction, decrease or disappearance of value of the person or
property insured in a policy by a peril insured against
, ✔✔Loss Payable Clause - ✔✔An insurance provision authorizing payment in the event
of loss to a person or entity other than the named insured having an insurable interest in
the covered property
✔✔Loss Ratio - ✔✔a calculation used by insurance companies to relate income from
loss expenses (incurred losses + loss adjusting expense) / earned premium =?
✔✔Loss Valuation - ✔✔a factor in determining the premium charged and the amount of
insurance required
✔✔Market Value - ✔✔a seldom used method of valuing a loss based upon the amount
a willing buyer would pay to a willing seller for the property prior to loss
✔✔Misrepresentation - ✔✔a false statement or lie that can render a contract void
✔✔Monoline Policy - ✔✔a policy written separately as a single coverage
✔✔Mutual Assesment Insurer - ✔✔a mutual insurance company with thre right to
assess a policy holder's additional amounts of mremium to meet operational needs
✔✔Mutual Companies - ✔✔insurance organizations that have no capital stock, but are
owned by the policy holders
✔✔Mysterious Disappearance - ✔✔a dissapearance of property tha cannot be
explained as to the location, time or manner of the property loss
✔✔Named Insured - ✔✔the individual(s) whose name appears on the policy's
decleration
✔✔Named Peril - ✔✔the cause of loss specifically covered by the insurance policy. no
coverage for unlisted perils
✔✔Negligence - ✔✔the failure to use the care that a reasonable prudent person would
under the same circumstances
✔✔No benefit to bailee - ✔✔a provision that includes any assignment or granting of any
policy provision to any person or organization holding, storing, repairing, or moving
isnured property for a fee
✔✔Nonadmitted insurer - ✔✔an insurance company that has not applied, or has
applied and been denied a certificate of authority and may not transact insurance
✔✔Nonrenewal - ✔✔a termination of a policy by an insurer on the anniversary or
renewal date
