SC P&C INSURANCE UPDATED FINAL EXAM
QUESTIONS AND ANSWERS SURE A+
✔✔Avoidance - ✔✔A method of dealing with risk by deliberately keeping away from it
(e.g. if a person wanted to avoid the risk of being killed in an airplane crash, he/she
might choose never to fly in a plane).
✔✔Bailee - ✔✔One who holds the personal property of another for a specific purpose.
✔✔Beneficiary - ✔✔the one who recieves the proceeds from an insurance policy
✔✔Binder - ✔✔A temporary insurance contract that forms an oral or wirtten agreement
between the insurance company and the customer.
✔✔Blanket Bond - ✔✔a type of bond that covers losses caused by dishonest
employees
✔✔Blanket Insurance - ✔✔A single property insurance policy that provides coverage for
multiple classes of property at one location, or provides coverage for one or more
classes of property at multiple locations.
✔✔Bodily Injury Liability - ✔✔Insurance that protects a driver from claims resulting from
injuries or deaths for which the insured is at fault
, ✔✔Boycott - ✔✔An unfair trade practice in which one person refuses to do business
with another until he or she agrees to certain conditions.
✔✔Builder's Risk Coverage Form - ✔✔This coverage form provides coverage for
buildings that are under construction. Can also be used to cover a building while
additions and alterations are being made to the structure.
✔✔Building and Personal Property Coverage Form - ✔✔A commercial property form
that covers buildings, and/or their contents.
✔✔Burglary - ✔✔entering a building unlawfully with intent to commit a felony or to steal
valuable property
✔✔Cancellation - ✔✔the termination of an in-force insurance policy by either the insurer
or the insured prior to the expiration date shown on the policy
✔✔Casualty Insurance - ✔✔A type of insurance that is primarily concerned with the
legal liability for losses caused by injury to persons or damage to the property of others.
✔✔Cease and Desist Order - ✔✔A demand of a person to stop committing an action
that is in violation of a provision.
✔✔Certificate of Authority - ✔✔A document that authorizes a company to start
conducting business and specifies the kind(s) of insurance a company can transact. It is
illegal for an insurance company to transact insurance without this certificate.
✔✔Certificate of Insurance - ✔✔A legal document that indicates that an insurance
policy has been issued, and that states both the amounts and types of insurance
provided.
✔✔Claim - ✔✔a demand made by an insured to cover a loss protected by the insurance
policy
✔✔Class Rating - ✔✔The practice of computing a price per unit of insurance that
applies to all applicants possessing a given set of characteristics.
✔✔Coercion - ✔✔An unfair trade practice in which an insurer uses physical or mental
force to persuade an applicant to buy insurance.
✔✔Coinsurance - ✔✔A cost-sharing provision requires the insured to assume a portion
of the cost of covered services.
QUESTIONS AND ANSWERS SURE A+
✔✔Avoidance - ✔✔A method of dealing with risk by deliberately keeping away from it
(e.g. if a person wanted to avoid the risk of being killed in an airplane crash, he/she
might choose never to fly in a plane).
✔✔Bailee - ✔✔One who holds the personal property of another for a specific purpose.
✔✔Beneficiary - ✔✔the one who recieves the proceeds from an insurance policy
✔✔Binder - ✔✔A temporary insurance contract that forms an oral or wirtten agreement
between the insurance company and the customer.
✔✔Blanket Bond - ✔✔a type of bond that covers losses caused by dishonest
employees
✔✔Blanket Insurance - ✔✔A single property insurance policy that provides coverage for
multiple classes of property at one location, or provides coverage for one or more
classes of property at multiple locations.
✔✔Bodily Injury Liability - ✔✔Insurance that protects a driver from claims resulting from
injuries or deaths for which the insured is at fault
, ✔✔Boycott - ✔✔An unfair trade practice in which one person refuses to do business
with another until he or she agrees to certain conditions.
✔✔Builder's Risk Coverage Form - ✔✔This coverage form provides coverage for
buildings that are under construction. Can also be used to cover a building while
additions and alterations are being made to the structure.
✔✔Building and Personal Property Coverage Form - ✔✔A commercial property form
that covers buildings, and/or their contents.
✔✔Burglary - ✔✔entering a building unlawfully with intent to commit a felony or to steal
valuable property
✔✔Cancellation - ✔✔the termination of an in-force insurance policy by either the insurer
or the insured prior to the expiration date shown on the policy
✔✔Casualty Insurance - ✔✔A type of insurance that is primarily concerned with the
legal liability for losses caused by injury to persons or damage to the property of others.
✔✔Cease and Desist Order - ✔✔A demand of a person to stop committing an action
that is in violation of a provision.
✔✔Certificate of Authority - ✔✔A document that authorizes a company to start
conducting business and specifies the kind(s) of insurance a company can transact. It is
illegal for an insurance company to transact insurance without this certificate.
✔✔Certificate of Insurance - ✔✔A legal document that indicates that an insurance
policy has been issued, and that states both the amounts and types of insurance
provided.
✔✔Claim - ✔✔a demand made by an insured to cover a loss protected by the insurance
policy
✔✔Class Rating - ✔✔The practice of computing a price per unit of insurance that
applies to all applicants possessing a given set of characteristics.
✔✔Coercion - ✔✔An unfair trade practice in which an insurer uses physical or mental
force to persuade an applicant to buy insurance.
✔✔Coinsurance - ✔✔A cost-sharing provision requires the insured to assume a portion
of the cost of covered services.
