Insurance: Property & Casualty Test Questions and
Answers Rated A+
Accident - -A sudden and unexpected value is not given by both parties to the contract.
event which occurs at a specific time and place.
Alien Company - -An insurance company
Actual Cash Value (ACV) - -The cost to incorporated in a country other than the United
replace an item of property at the time of loss, States.
less an allowance for depreciation. Often used to
determine amount of reimbursement for a loss.
Allied Lines - -Used to insure additional
types of losses to property and sold in
Additional Living Expense - -A coverage conjunction with fire insurance.
designed to reimburse the insured for an
increase in living expenses necessitated by loss
to the dwelling. This indirect loss must be the All-Risk - -A term used to indicate that
result of a direct loss by a covered peril. property is covered against all perils except those
specifically excluded.
Adhesion - -A characteristic of insurance
policies that means the contract is prepared by Apportionment - -A method determining
the insurer and is non-negotiable or "one-sided". how much will be contributed by each company
toward a loss covered under more than one
policy.
Admitted Company - -A company which
meets the state insurance department's
standards and is authorized to do business in the Appurtenant Structures - -A structure
state. belonging to the insured and associated with the
insured property. (another name for "other
structures")
Agent - -The state-licensed professional
who represents the insurance company in the
sale and servicing of insurance. The direct link Appraisal Clause - -A clause which
between the insurance company and the provides a specific procedure when the insured
policyholder. and the insurer are in disagreement regarding the
amount of a loss.
Aggregate Limit - -A type of policy limit
found in liability policies which limits coverage to Binder - -An acknowledgment (or receipt),
a specified total amount for all losses occurring usually from the agent, that insurance applied for
within the policy period. is in force regardless of any premium settlement.
Aleatory - -A characteristic of insurance Blanket Position Bond - -Fidelity bond
contracts, meaning a contract in which equal which specifies a single limit of liability applicable
, Insurance: Property & Casualty Test Questions and
Answers Rated A+
to each employee involved in a loss. define the perils for which coverage is provided
and is combined with one or more coverage
forms, the commercial property conditions form,
Bodily Injury - -__________ coverage pays the common policy conditions form, and the
for injuries, sickness, disease, or required care declarations to make up an ISO commercial
for death that the policyholder is found legally property policy. ex: Basic, Broad, Special
liable for.
Claims-Made Coverage Form - -Part of the
Boiler and Machinery Policy - -Insurance Commercial General Liability coverage part of the
which covers the insured against loss (liability CPP. Provides coverage for bodily injury and
and physical damage) arising out of the use of property damage if a written claim is made during
scheduled commercial equipment. the policy period, regardless of when the injury or
damage actually occurred.
Broker - -An individual who represents the
prospect, instead of the insurance company, in Coinsurance Clause - -A clause that
the insurance transaction. Frequently involved in requires an insured to pay part of a loss if the
the placement of very large or unusual risks. coverage provided under the policy limits is less
than a specific percentage of the value of the
property at the time of loss.
Burglary - -The unlawful taking of property
by forced entry into the premises while the
premises is closed for business (must be visible Collision - -A type of physical damage
evidence of forced entry or exit). insurance which covers loss due to the insured
object striking another object. Always written with
a deductible, and includes overturning of a
Business Interruption Insurance - -A Time- vehicle.
Element coverage which reimburses the insured
for loss of earnings due to the inability to operate
caused by a covered peril. Commercial Blanket Bond - -A bond which
covers loss arising from the dishonesty of one or
more employees acting separately or in collusion.
Casualty Insurance - -A broad category of The limit of liability applies separately to each
coverage against loss of property, damage, or loss, regardless of the number of employees
other liabilities. Includes auto, liability, theft, involved.
elevator, glass, aviation, boiler and machinery,
worker's comp, bonds, and many other types of
insurance. Commercial General Liability (CGL) - -A
coverage part of the CPP that protects the
insured from claims by third parties as the result
Causes of Loss Form - -Commercial of business conduct.
property insurance forms that establish and
Answers Rated A+
Accident - -A sudden and unexpected value is not given by both parties to the contract.
event which occurs at a specific time and place.
Alien Company - -An insurance company
Actual Cash Value (ACV) - -The cost to incorporated in a country other than the United
replace an item of property at the time of loss, States.
less an allowance for depreciation. Often used to
determine amount of reimbursement for a loss.
Allied Lines - -Used to insure additional
types of losses to property and sold in
Additional Living Expense - -A coverage conjunction with fire insurance.
designed to reimburse the insured for an
increase in living expenses necessitated by loss
to the dwelling. This indirect loss must be the All-Risk - -A term used to indicate that
result of a direct loss by a covered peril. property is covered against all perils except those
specifically excluded.
Adhesion - -A characteristic of insurance
policies that means the contract is prepared by Apportionment - -A method determining
the insurer and is non-negotiable or "one-sided". how much will be contributed by each company
toward a loss covered under more than one
policy.
Admitted Company - -A company which
meets the state insurance department's
standards and is authorized to do business in the Appurtenant Structures - -A structure
state. belonging to the insured and associated with the
insured property. (another name for "other
structures")
Agent - -The state-licensed professional
who represents the insurance company in the
sale and servicing of insurance. The direct link Appraisal Clause - -A clause which
between the insurance company and the provides a specific procedure when the insured
policyholder. and the insurer are in disagreement regarding the
amount of a loss.
Aggregate Limit - -A type of policy limit
found in liability policies which limits coverage to Binder - -An acknowledgment (or receipt),
a specified total amount for all losses occurring usually from the agent, that insurance applied for
within the policy period. is in force regardless of any premium settlement.
Aleatory - -A characteristic of insurance Blanket Position Bond - -Fidelity bond
contracts, meaning a contract in which equal which specifies a single limit of liability applicable
, Insurance: Property & Casualty Test Questions and
Answers Rated A+
to each employee involved in a loss. define the perils for which coverage is provided
and is combined with one or more coverage
forms, the commercial property conditions form,
Bodily Injury - -__________ coverage pays the common policy conditions form, and the
for injuries, sickness, disease, or required care declarations to make up an ISO commercial
for death that the policyholder is found legally property policy. ex: Basic, Broad, Special
liable for.
Claims-Made Coverage Form - -Part of the
Boiler and Machinery Policy - -Insurance Commercial General Liability coverage part of the
which covers the insured against loss (liability CPP. Provides coverage for bodily injury and
and physical damage) arising out of the use of property damage if a written claim is made during
scheduled commercial equipment. the policy period, regardless of when the injury or
damage actually occurred.
Broker - -An individual who represents the
prospect, instead of the insurance company, in Coinsurance Clause - -A clause that
the insurance transaction. Frequently involved in requires an insured to pay part of a loss if the
the placement of very large or unusual risks. coverage provided under the policy limits is less
than a specific percentage of the value of the
property at the time of loss.
Burglary - -The unlawful taking of property
by forced entry into the premises while the
premises is closed for business (must be visible Collision - -A type of physical damage
evidence of forced entry or exit). insurance which covers loss due to the insured
object striking another object. Always written with
a deductible, and includes overturning of a
Business Interruption Insurance - -A Time- vehicle.
Element coverage which reimburses the insured
for loss of earnings due to the inability to operate
caused by a covered peril. Commercial Blanket Bond - -A bond which
covers loss arising from the dishonesty of one or
more employees acting separately or in collusion.
Casualty Insurance - -A broad category of The limit of liability applies separately to each
coverage against loss of property, damage, or loss, regardless of the number of employees
other liabilities. Includes auto, liability, theft, involved.
elevator, glass, aviation, boiler and machinery,
worker's comp, bonds, and many other types of
insurance. Commercial General Liability (CGL) - -A
coverage part of the CPP that protects the
insured from claims by third parties as the result
Causes of Loss Form - -Commercial of business conduct.
property insurance forms that establish and
