WA State Property & Casualty State exam Study Guide
Course
Washington State Insurance
Institution
Washington State Insurance
WA State Property & Casualty State
exam Study Guide
Assignment - Answer️️ -The transfer of a policy to another party. Often
done when commercial property is sold to a new owner.
Building & Personal Property (BPP) - Answer️️ -The commercial property
policy for larger businesses.
Busine...
WA State Property & Casualty State
exam Study Guide
Assignment - Answer✔️✔️-The transfer of a policy to another party. Often
done when commercial property is sold to a new owner.
Building & Personal Property (BPP) - Answer✔️✔️-The commercial property
policy for larger businesses.
Business Income Policy - Answer✔️✔️-A commercial policy covering the
indirect loss of income following a loss.
Cancellation - Answer✔️✔️-Termination of a policy during the policy
period.
Casualty Insurance - Answer✔️✔️-A broad term which includes all of the
policy types that may be sold with a Casualty License - in most states this
includes auto, liability, work comp, commercial crime, and surety bonds.
Claims Made Form - Answer✔️✔️-A policy that pays according to the
coverage in effect in the year the claim is made rather than according to the
coverage in effect at the time of the loss. Professional Liability policies are
usually written on a Claims Made basis, while other Liability Policies are
written on an Occurrence Basis.
Coinsurance Clause - Answer✔️✔️-The policy provision which sates that if
the Insured has less than a specified amount of coverage (usually 80%), the
Insurer will not fully cover a partial loss.
Commercial Package Policy (CPP) - Answer✔️✔️-A bundling of commercial
policies
Competent Party - Answer✔️✔️-A person who is capable of entering into an
insurance contract. Such a person must be sane, sober, and of age of
majority (age 15 in most states).
Employers Liability - Answer✔️✔️-The section of a Work Comp policy
covering the employer for claims made by the injured worker's family
members.
Fair Credit Reporting Act - Answer✔️✔️-What an item would sell for in the
marketplace.
Fidelity Bond - Answer✔️✔️-A contract sold by a Surety Producer to cover
employee theft.
Gramm-Leach-Bliley Act - Answer✔️✔️-A federal law which protects
consumer privacy and which encourages the states to adopt uniform
licensing standards.
Hazzard - Answer✔️✔️-Any factor that increases the likelihood that a peril
will occur.
Twisting - Answer✔️✔️-Is the illegal and means that no person can, by
misrepresentations or misleading comparisons, induce, or tend to induce
any insured to lapse, terminate, forfeit, surrender, retain or convert any
insurance policy.
Law of Large Numbers - Answer✔️✔️-The maximum the policy will pay for
any one loss - this amount will be stated on the Declarations.
Medical Payments - Answer✔️✔️-A liability insurance term which refers to
payment for a victim's medical bills without regard to fault. The policy will
have a specified Limit of Liability for "med pay." Medical payments are
never made to the Insured.
Morale Hazzard - Answer✔️✔️-An Insured's carelessness or indifference
which will make a loss more likely to occur.
Moral Hazzard - Answer✔️✔️-Refer to the fact that we all act differently
when we have insurance. We are simply less likely to prevent a loss if we
know that the Insurer will pay the claim. Moral Hazzard may also refer to
a thief or arsonist who intentionally causes a loss.
Mutual Insurer - Answer✔️✔️-An insurance company owned by the policy
holders.
Inherent Vice - Answer✔️✔️-A loss caused by natural deterioration. Insurers
will not pay claims for inherent vice.
Extra Expense Policy - Answer✔️✔️-Commercial property coverage to pay
for the extra cost of continuing a business after a loss.
Business Income Policy - Answer✔️✔️-A commercial policy covering the
indirect loss of income following a loss.
Comprehension Coverage - Answer✔️✔️-Physical damage insurance that
covers all property losses except collision. Also known as "Other than
Collision."
Concealment - Answer✔️✔️-Intentionally hiding the truth or intentionally
telling only a partial truth.
Conditions Section - Answer✔️✔️-The part of the policy containing the
details of the policy, including the duties of the Insured.
Consent to Settle Provision - Answer✔️✔️-The provision in an E&O policy or
Employment Practices Liability Policy requiring the Insured's consent prior
to any claim settlement.
Consideration - Answer✔️✔️-Something of value given by each party in a
contract.
Declarations - Answer✔️✔️-The "Dec Sheet" is the first page of the policy
and includes the "fill-in-the blanks" information obtained by the Producer,
including the names of the parties, the description of the covered property,
the policy's limit of liability, the duration of the policy, the amount of the
premium, and the amount of the deductible.
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