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Property and Casualty Chapter 3 Questions
with Answers (100% Correct Answers)
The first standardized property insurance policy was called the _____ of 1943
Answer: Standard Fire Policy
The Standard Fire Policy is the only P and C policy to start at 12:01 __ All
other policies start at 12:01 (one minute after midnight). Answer: p.m. and a.m.
In property insurance the specific event, such as fire, flood or earthquake, that
causes a loss is called a ___. Answer: Peril
In a Named Peril policy, should a loss occur, the burden of proof is on the
_____. Answer: Policy owner/insured
A situation or condition that increases or contributes to the probability that a
loss will occur is referred to as a ______. Answer: Hazard
Faulty wiring in a building is an example of a ____ hazard. Answer: Physical
Actual Cash Value (ACV) is defined as _____ minus _____. Answer:
Replacement Cost, Depreciation
Under an _____ policy, the insurance company and the insured agree to a
specific value for each piece of insured property before the contract is written.
Answer: Agreed Value
What someone else will pay you in cash for a piece of property at that moment
in time is called its _____ value. Answer: Fair market
The formula for Coinsurance is ____ divided by ____ times ____ = Amount
Paid. Answer: Did Carry, Should Carry, Loss
The purpose of the Coinsurance Clause in a property insurance policy is to
encourage the policy owner to _____. Answer: Insure their property to value
Property and Casualty Chapter 3 Questions
with Answers (100% Correct Answers)
The first standardized property insurance policy was called the _____ of 1943
Answer: Standard Fire Policy
The Standard Fire Policy is the only P and C policy to start at 12:01 __ All
other policies start at 12:01 (one minute after midnight). Answer: p.m. and a.m.
In property insurance the specific event, such as fire, flood or earthquake, that
causes a loss is called a ___. Answer: Peril
In a Named Peril policy, should a loss occur, the burden of proof is on the
_____. Answer: Policy owner/insured
A situation or condition that increases or contributes to the probability that a
loss will occur is referred to as a ______. Answer: Hazard
Faulty wiring in a building is an example of a ____ hazard. Answer: Physical
Actual Cash Value (ACV) is defined as _____ minus _____. Answer:
Replacement Cost, Depreciation
Under an _____ policy, the insurance company and the insured agree to a
specific value for each piece of insured property before the contract is written.
Answer: Agreed Value
What someone else will pay you in cash for a piece of property at that moment
in time is called its _____ value. Answer: Fair market
The formula for Coinsurance is ____ divided by ____ times ____ = Amount
Paid. Answer: Did Carry, Should Carry, Loss
The purpose of the Coinsurance Clause in a property insurance policy is to
encourage the policy owner to _____. Answer: Insure their property to value
