Property and Casualty Basics (SOLVED!)

An individual purchased her own personal property insurance policy on her newly purchased dream home. This type of insurance coverage that applies to the insured's own property is known as... correct answers First party risk protection The cost of a unit of insurance is known as the... correct answers Rate Using an air-cooled engine, a proposed insured has developed a new, experimental aircraft. If the inventor applies for liability insurance, what rating type will the insurer most likely use? correct answers Judgment The policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is called... correct answers Subrogation What type of insurance policy insures against all risks of loss that are not specifically excluded by the policy? correct answers Open peril policy What term includes damage where the insured peril was the proximate cause of loss? correct answers Direct loss In many circumstances, the action of more than one cause produces a particular harm or loss to an insured. The predominant legal rule is that if a loss is caused by both an insured peril and an uninsured peril, coverage is deemed to apply. This rule of law is called... correct answers Concurrent causation Concurrent causation occurs when correct answers A loss is caused by both a covered and an uncovered peril Which of the following terms describes the act of revoking or terminating one's insurance policy? correct answers Cancellation Which of the following is a cancellation procedure in which the premium returned to the insured is NOT in direct proportion to the number of days remaining in the policy period? correct answers Short rate The major expense category for most insurance companies is payment for losses arising from claims. All of the following statements regarding loss reserves are true EXCEPT... correct answers The calculation of the loss reserves is always very accurate and predictable (It is always an estimate) The estimated amount that an insurer would have to pay on a claim is called the... correct answers Loss reserve The transfer of an insured's right to seek damages from a negligent party to the insurer is found in which of the following clauses? correct answers Subrogation