SC P&C Insurance Exam Study Guide QUESTION AND CORRECT DETAILED VERIFIED ANSWERS FROM VERIFIED SOURCES RATED A GRADE.
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Course
SOUTH CAROLINA PROPERTY AND CASUALTY INSURANCE
Institution
SOUTH CAROLINA PROPERTY AND CASUALTY INSURANCE
SC P&C Insurance Exam Study Guide QUESTION AND CORRECT DETAILED VERIFIED ANSWERS FROM VERIFIED SOURCES RATED A GRADE.
SC P&C Insurance Exam Study Guide QUESTION AND CORRECT DETAILED VERIFIED ANSWERS FROM VERIFIED SOURCES RATED A GRADE.
SC P&C Insurance Exam Study Guide QUESTION AND CORRECT DETAIL...
SC P&C Insurance Exam Study Guide
QUESTION AND CORRECT DETAILED
VERIFIED ANSWERS FROM VERIFIED
SOURCES RATED A GRADE.
Abandonment - correct Answers ✔✔ -the abdication of insured property
into the hands of another, or into the possession of no one in particular
Absolute Liability - correct Answers ✔✔ -Liability that arises from an
extremely dangerous situation. Often found in cases involving explosives.
Also known as "strict" liability. For example, you are absolutely liable if
you keep a wild animal as a pet.
Accident - correct Answers ✔✔ -an unplanned, unforseen event which
occurs suddenly and at a specific place
Actual Cash Value - correct Answers ✔✔ -the required amount to pay
damages for property loss, which is calculated based on the property's
current replacement value minus depreciation
Additional Coverage - correct Answers ✔✔ -a provision in an insurance
policy that allows for more coverage for a specific loss expense without an
increase in premium
Additional Insureds - correct Answers ✔✔ -individuals or business that are
not named as insured on the decleration page, butr are protected by the
policy, usually in regard to a specific interest
Adhesion - correct Answers ✔✔ -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 Answers ✔✔ -An insurer to which a state
insurance department has granted a license to do business within that
state.
Adverse Selection - correct Answers ✔✔ -In general, the tendency for
people with the greatest probability of loss to be the ones most likely to
purchase insurance.
Agent - correct Answers ✔✔ -an individual who is licensed to sell,
negotiate, or effect insurance contracts on behalf of an insurer
Aggregate Limit - correct Answers ✔✔ -the maximum amount an insurer
will pay for all covered losses during the covered policy period
Agreed Value - correct Answers ✔✔ -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.
Aleatory - correct Answers ✔✔ -A contract in which participating parties
exchange unequal amounts. the amount the insured will pay in premiums
is unequal to the amount the insurer will pay in the event of a loss.
Alien Insurer - correct Answers ✔✔ -an insurance company that is
incorporated outside the U.S.
Apparent Authority - correct Answers ✔✔ -The appearance or the
assumption of authority based on the actions, words, or deeds of the
principal or because of circumstances the principal created.
Appraisal - correct Answers ✔✔ -an assesment of property to determine
either the correct amount of insurance to be written or the amount of loss
to be paid
Arbitration - correct Answers ✔✔ -A process, agreed to by parties to a
dispute in lieu of going to court, by which a neutral person or body makes
a binding decision
, Assignment - correct Answers ✔✔ -the transfer of legal right or interest in
an insurance policy, in P&C ususally only valid with prior written consent
of the insurer
Authorized Insurer - correct Answers ✔✔ -An insurance company that has
qualified and received a Certificate of Authority from the Department of
Insurance to transact insurance in the state.
Auto - correct Answers ✔✔ -a land motor vehicle, trailer or semi-trailer
designed for use on public roads
Avoidance - correct Answers ✔✔ -A method of dealing with risk by
deliberately keeping away from it (e.g. if a person wanted to avoid the risk
of being killed in an airplane crash, he/she might choose never to fly in a
plane).
Bailee - correct Answers ✔✔ -One who holds the personal property of
another for a specific purpose.
Beneficiary - correct Answers ✔✔ -the one who recieves the proceeds
from an insurance policy
Binder - correct Answers ✔✔ -A temporary insurance contract that forms
an oral or wirtten agreement between the insurance company and the
customer.
Blanket Bond - correct Answers ✔✔ -a type of bond that covers losses
caused by dishonest employees
Blanket Insurance - correct Answers ✔✔ -A single property insurance
policy that provides coverage for multiple classes of property at one
location, or provides coverage for one or more classes of property at
multiple locations.
Bodily Injury Liability - correct Answers ✔✔ -Insurance that protects a
driver from claims resulting from injuries or deaths for which the insured is
at fault
Boycott - correct Answers ✔✔ -An unfair trade practice in which one
person refuses to do business with another until he or she agrees to
certain conditions.
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