Property and Casualty Insurance EXAM
Solved Papers - Questions with Complete
Solutions
This type of insurance designates a particular item to be
insured - Correct Answers ✅Specific insurance
This type of insurance covers more than one item of property
at a single location or one more items of property at multiple
locations. - Correct Answers ✅Blanket insurance
possibility of both gain and loss. Not insurable. - Correct
Answers ✅Speculative
only the possibility of loss. Insurable. - Correct Answers
✅Pure
avoid, control, retain, and transfer risk. - Correct Answers
✅What are the 5 methods of managing or handling risk?
A condition or situation which increases the chance for loss -
Correct Answers ✅Hazard
a hazard that arises from the condition, occupancy, or use of
the property itself.
ex: skateboard left on the steps - Correct Answers
✅Physical Hazards
,Property and Casualty Insurance EXAM
Solved Papers - Questions with Complete
Solutions
when an individual through carelessness or by irresponsible
actions can increase the possibly for a loss.
ex: person who drives carelessly just because they know they
are insured. - Correct Answers ✅Moral Hazards
when a person might create a loss situation on purpose just
to collect from the insurance company.
ex: Prearranged, faked theft of someone's old vehicle so they
can get an insurance payout to buy a new vehicle. - Correct
Answers ✅Morale Hazards
The amount of money it would take to replace a damaged or
destroyed item with one of like kind and quality AT THE TIME
OF LOSS. No deduction for depreciation. - Correct Answers
✅Replacement Cost
Replacement Cost, minus depreciation. - Correct Answers
✅Actual Cash Value (ACV)
Loss to one item of a pair or set does not constitute loss to
the entire pair or set. - Correct Answers ✅Pair and Set
Clause
,Property and Casualty Insurance EXAM
Solved Papers - Questions with Complete
Solutions
A method of resolving disputes between insurers and
insureds over the amount owed on a covered loss.
-both parties select an appraiser
-the two appraisers select an umpire
-if the appraisers do not agree, the umpire is consulted
-the amount agreed on by 2 out of 3 is the amount that will
be paid - Correct Answers ✅Appraisal
An insurer's right to recover the amount of its loss payment
from the third party who is legally responsible for the loss. -
Correct Answers ✅Subrogation
this condition is similar to the Appraisal Condition but it is not
limited to disputes over the value of the loss. It may also be
used to resolve other areas of disagreement between the
insured and the insurance company. - Correct Answers
✅Arbitration
Windstorm, Civil commotion, Smoke, Hail, Aircraft, Vehicles,
Volcanic eruption, Explosion, Riot - Correct Answers ✅What
does WC SHAVVER stand for?
, Property and Casualty Insurance EXAM
Solved Papers - Questions with Complete
Solutions
Burglar damage, Ice & snow weight, Glass breakage,
Accidental discharge, Falling objects, Freezing of pipes,
Electrical damage, Collapse, Tearing apart. - Correct
Answers ✅What does BIG AFFECT stand for?
A financial state that occurs if liabilities are greater than
assets. - Correct Answers ✅Insolvency
Knowledge of the Agents is Knowledge of the Principal
(Insurance Company) - Correct Answers ✅Law of Agency
Insurance Company - Correct Answers ✅Principal
Insurance Services Office which is an organization established
for the benefit of its member insurance companies. This
organization gathers statistics, provides loss costs, drafts
policy forms and coverage provisions and conducts
inspections for rate making purposes. - Correct Answers
✅What is the ISO?
Requires the insured to carry a minimum specified amount
(generally 80%) of the replacement cost value of the insured
property in order for partial losses to be paid in full. - Correct
Answers ✅Coinsurance Clause
Solved Papers - Questions with Complete
Solutions
This type of insurance designates a particular item to be
insured - Correct Answers ✅Specific insurance
This type of insurance covers more than one item of property
at a single location or one more items of property at multiple
locations. - Correct Answers ✅Blanket insurance
possibility of both gain and loss. Not insurable. - Correct
Answers ✅Speculative
only the possibility of loss. Insurable. - Correct Answers
✅Pure
avoid, control, retain, and transfer risk. - Correct Answers
✅What are the 5 methods of managing or handling risk?
A condition or situation which increases the chance for loss -
Correct Answers ✅Hazard
a hazard that arises from the condition, occupancy, or use of
the property itself.
ex: skateboard left on the steps - Correct Answers
✅Physical Hazards
,Property and Casualty Insurance EXAM
Solved Papers - Questions with Complete
Solutions
when an individual through carelessness or by irresponsible
actions can increase the possibly for a loss.
ex: person who drives carelessly just because they know they
are insured. - Correct Answers ✅Moral Hazards
when a person might create a loss situation on purpose just
to collect from the insurance company.
ex: Prearranged, faked theft of someone's old vehicle so they
can get an insurance payout to buy a new vehicle. - Correct
Answers ✅Morale Hazards
The amount of money it would take to replace a damaged or
destroyed item with one of like kind and quality AT THE TIME
OF LOSS. No deduction for depreciation. - Correct Answers
✅Replacement Cost
Replacement Cost, minus depreciation. - Correct Answers
✅Actual Cash Value (ACV)
Loss to one item of a pair or set does not constitute loss to
the entire pair or set. - Correct Answers ✅Pair and Set
Clause
,Property and Casualty Insurance EXAM
Solved Papers - Questions with Complete
Solutions
A method of resolving disputes between insurers and
insureds over the amount owed on a covered loss.
-both parties select an appraiser
-the two appraisers select an umpire
-if the appraisers do not agree, the umpire is consulted
-the amount agreed on by 2 out of 3 is the amount that will
be paid - Correct Answers ✅Appraisal
An insurer's right to recover the amount of its loss payment
from the third party who is legally responsible for the loss. -
Correct Answers ✅Subrogation
this condition is similar to the Appraisal Condition but it is not
limited to disputes over the value of the loss. It may also be
used to resolve other areas of disagreement between the
insured and the insurance company. - Correct Answers
✅Arbitration
Windstorm, Civil commotion, Smoke, Hail, Aircraft, Vehicles,
Volcanic eruption, Explosion, Riot - Correct Answers ✅What
does WC SHAVVER stand for?
, Property and Casualty Insurance EXAM
Solved Papers - Questions with Complete
Solutions
Burglar damage, Ice & snow weight, Glass breakage,
Accidental discharge, Falling objects, Freezing of pipes,
Electrical damage, Collapse, Tearing apart. - Correct
Answers ✅What does BIG AFFECT stand for?
A financial state that occurs if liabilities are greater than
assets. - Correct Answers ✅Insolvency
Knowledge of the Agents is Knowledge of the Principal
(Insurance Company) - Correct Answers ✅Law of Agency
Insurance Company - Correct Answers ✅Principal
Insurance Services Office which is an organization established
for the benefit of its member insurance companies. This
organization gathers statistics, provides loss costs, drafts
policy forms and coverage provisions and conducts
inspections for rate making purposes. - Correct Answers
✅What is the ISO?
Requires the insured to carry a minimum specified amount
(generally 80%) of the replacement cost value of the insured
property in order for partial losses to be paid in full. - Correct
Answers ✅Coinsurance Clause
