Kentucky Property Insurance Exam Flashcards with answers 2024

Kentucky Property Insurance Exam FlashcardsAbandonment - correct answer The abdication of insured property into the hands of another, or into the possession of no one in particular. Accident - correct answer An unplanned, unforeseen event which occurs suddenly and at an unspecified place. Actual Cash Value - correct answer The required amount to pay damages or for property loss, which is calculated based on the property's current replacement value minus depreciation. Additional Coverage - correct answer A provision in an insurance policy that allows for more coverage for a specific loss without an increase in premium Adhesion - correct answer A contract offered on a "take it or leave it" basis by an insurer, in which the insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured. Admitted Insurer - correct answer An insurance company authorized and licensed to transact in a particular state. Adverse Selection - correct answer The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability. Agent - correct answer An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of an insurer. Agreed Value - correct answer A property policy with a provision agreed upon by the insurer and insured as to the amount of insurance that represents a fair valuation for the property at the time the insurance is written.