Ohio Personal Lines (Insurance
Exam)Accurate 100%
Stock Insurance Company - ANSWER Issues non-participating policies and is owned by
stockholders who received taxable corporate dividends as a return profit
Reinsurance - ANSWER The transfer of risk between insurance companies. The
reinsurer assumes some or all of the risks of the ceding, or primary, insurance company
Domestic - ANSWER Insurer organized under the laws of the resident state
Foreign - ANSWER Insurer organized under the laws of another state within the United
States
Alien - ANSWER Insurer oganized under the laws of a country outside of the United
States
Domicile - ANSWER Refers to the state in which an insurer is incorporated
Express - ANSWER Authority that is written into the producers agency contract
Implied - ANSWER Authority that in which the public and the insurer assumes the agent
possesses
Apparent - ANSWER Authority created when the agent exceeds express authority and
the insurer does not respond
FCRA - ANSWER Protects consumer privacy by ensuring that any data collected by an
insurer remains confidential, and is accurate, relevant, and used for a proper and
specific purpose
Risk - ANSWER The uncertainty of a loss
Peril - ANSWER The cause of a loss
Hazard - ANSWER Increases the possibility of a loss
Indemnity - ANSWER Does not allow the insured to profit from a loss; instead, it
restores the insured to the same financial or economic condition the existed prior to loss
Adhesion - ANSWER One party (the insurer) prepares the contract and presents it to
the second party (the insured), who must accept it on a "take-it-or-leave-it" basis
,Types Of Insurers - ANSWER Stock Insurers, Mutual Insurers, Reciprocal Insurers, and
Self-Insurer
Reduction - ANSWER Minimizing the chance of a loss without eliminating the risk
altogether
Retention - ANSWER Assuming responsibility for a loss
Conditional - ANSWER A contract that requires that both parties perform certain duties
Acutuary - ANSWER Determines the probability of loss and sets premium rates
Physical - ANSWER A hazard that occurs when a physical condition increases the
probability of loss; use, condition, or occupancy of property
Moral - ANSWER A hazard that occurs when dishonest tendencies increase the
probability of a loss; certain characteristics and behaviors of people
Morale - ANSWER A hazard that occurs when a persons attitude increases the
probability of a loss
Speculative Risk - ANSWER Situations where there is a chance or possibility for loss,
no loss or gain
Pure Risk - ANSWER Situations where there is no chance for gain, only loss. The only
risk that can be insured
Misreprensentation - ANSWER False statement contained in the insured's application
and does not usually void coverage or the policy
Fraud - ANSWER An intentional deception of the truth in order to induce another party
with something of value or to surrender a legal right
Concealment - ANSWER The willful holding back or secretion of material facts pertinent
to the issuance of insurance or claim
Reinsurance - ANSWER A contract between the insuring company and the reinsurer,
and does not involve the insured
Underwriter - ANSWER Responsible for the selection of risks and rating that determines
actual policy premium
Underwriting - ANSWER The process of selecting, classifying, and rating a risk for the
purpose of insurance coverage
Waiver - ANSWER Voluntary surrender of a known right, claim or privilege
, Estoppel - ANSWER Prevents the denial of a fact, if the fact was admitted to be true
previously
Agreement - ANSWER One party must make and communicate an offer to the other
party and the second party must accept that offer
Occurrence - ANSWER An accident that includes continuous or repeated exposure to
the same general harmful conditions
Pro Rata - ANSWER If an insurer cancels an insurance policy before its expiration date,
the refund is made on this basis:
Friendly Fire - ANSWER A fire that stays within its intended boundaries
Hostile Fire - ANSWER A fire that burns outside of its intended boundaries
Endorsement - ANSWER A policy form that alters or adds to the provisions of a
property and casualty insurance contract
Deductible - ANSWER The specified amount of each loss that the insured must bear
Direct Loss - ANSWER Causes damage without an intervening cause
Indirect Loss - ANSWER Occurs as the consequence of a direct loss
Named Peril - ANSWER Policy that specifically lists covered perils (causes of loss)
Open Peril - ANSWER Policy that covers all perils except those specifically excluded
Replacement Value - ANSWER The cost to replace damaged property with property of
like kind and quality, at current pricing, without a deduction for depreciation
Actual Cash Value - ANSWER The replacement value of property, minus depreciation
Valued Policy - ANSWER A policy that requires the insurance company pay the total
scheduled limit of insurance for a total loss
Specific Limit - ANSWER Insures a single item on a single policy for a single limit of
insurance
Scheduled Limit - ANSWER Insures one or more items on a single policy and each item
is insured at a scheduled limit of insurance
Declarations Page - ANSWER Describes basic information of the policy; i.e., the who,
what, when, where, and how much
Exam)Accurate 100%
Stock Insurance Company - ANSWER Issues non-participating policies and is owned by
stockholders who received taxable corporate dividends as a return profit
Reinsurance - ANSWER The transfer of risk between insurance companies. The
reinsurer assumes some or all of the risks of the ceding, or primary, insurance company
Domestic - ANSWER Insurer organized under the laws of the resident state
Foreign - ANSWER Insurer organized under the laws of another state within the United
States
Alien - ANSWER Insurer oganized under the laws of a country outside of the United
States
Domicile - ANSWER Refers to the state in which an insurer is incorporated
Express - ANSWER Authority that is written into the producers agency contract
Implied - ANSWER Authority that in which the public and the insurer assumes the agent
possesses
Apparent - ANSWER Authority created when the agent exceeds express authority and
the insurer does not respond
FCRA - ANSWER Protects consumer privacy by ensuring that any data collected by an
insurer remains confidential, and is accurate, relevant, and used for a proper and
specific purpose
Risk - ANSWER The uncertainty of a loss
Peril - ANSWER The cause of a loss
Hazard - ANSWER Increases the possibility of a loss
Indemnity - ANSWER Does not allow the insured to profit from a loss; instead, it
restores the insured to the same financial or economic condition the existed prior to loss
Adhesion - ANSWER One party (the insurer) prepares the contract and presents it to
the second party (the insured), who must accept it on a "take-it-or-leave-it" basis
,Types Of Insurers - ANSWER Stock Insurers, Mutual Insurers, Reciprocal Insurers, and
Self-Insurer
Reduction - ANSWER Minimizing the chance of a loss without eliminating the risk
altogether
Retention - ANSWER Assuming responsibility for a loss
Conditional - ANSWER A contract that requires that both parties perform certain duties
Acutuary - ANSWER Determines the probability of loss and sets premium rates
Physical - ANSWER A hazard that occurs when a physical condition increases the
probability of loss; use, condition, or occupancy of property
Moral - ANSWER A hazard that occurs when dishonest tendencies increase the
probability of a loss; certain characteristics and behaviors of people
Morale - ANSWER A hazard that occurs when a persons attitude increases the
probability of a loss
Speculative Risk - ANSWER Situations where there is a chance or possibility for loss,
no loss or gain
Pure Risk - ANSWER Situations where there is no chance for gain, only loss. The only
risk that can be insured
Misreprensentation - ANSWER False statement contained in the insured's application
and does not usually void coverage or the policy
Fraud - ANSWER An intentional deception of the truth in order to induce another party
with something of value or to surrender a legal right
Concealment - ANSWER The willful holding back or secretion of material facts pertinent
to the issuance of insurance or claim
Reinsurance - ANSWER A contract between the insuring company and the reinsurer,
and does not involve the insured
Underwriter - ANSWER Responsible for the selection of risks and rating that determines
actual policy premium
Underwriting - ANSWER The process of selecting, classifying, and rating a risk for the
purpose of insurance coverage
Waiver - ANSWER Voluntary surrender of a known right, claim or privilege
, Estoppel - ANSWER Prevents the denial of a fact, if the fact was admitted to be true
previously
Agreement - ANSWER One party must make and communicate an offer to the other
party and the second party must accept that offer
Occurrence - ANSWER An accident that includes continuous or repeated exposure to
the same general harmful conditions
Pro Rata - ANSWER If an insurer cancels an insurance policy before its expiration date,
the refund is made on this basis:
Friendly Fire - ANSWER A fire that stays within its intended boundaries
Hostile Fire - ANSWER A fire that burns outside of its intended boundaries
Endorsement - ANSWER A policy form that alters or adds to the provisions of a
property and casualty insurance contract
Deductible - ANSWER The specified amount of each loss that the insured must bear
Direct Loss - ANSWER Causes damage without an intervening cause
Indirect Loss - ANSWER Occurs as the consequence of a direct loss
Named Peril - ANSWER Policy that specifically lists covered perils (causes of loss)
Open Peril - ANSWER Policy that covers all perils except those specifically excluded
Replacement Value - ANSWER The cost to replace damaged property with property of
like kind and quality, at current pricing, without a deduction for depreciation
Actual Cash Value - ANSWER The replacement value of property, minus depreciation
Valued Policy - ANSWER A policy that requires the insurance company pay the total
scheduled limit of insurance for a total loss
Specific Limit - ANSWER Insures a single item on a single policy for a single limit of
insurance
Scheduled Limit - ANSWER Insures one or more items on a single policy and each item
is insured at a scheduled limit of insurance
Declarations Page - ANSWER Describes basic information of the policy; i.e., the who,
what, when, where, and how much
