NC Personal Lines Exam Questions And Answers 100% Pass
7 views 0 purchase
Course
Personal Lines
Institution
Personal Lines
NC Personal Lines Exam Questions And
Answers 100% Pass
Example of Direct Loss - answerLoss due to fire destroying a building
Risk Sharing - answerB and G agree to share the cost of replacing a basketball goal if it is damaged. In
risk management terms this is __________
Replacement Cost - answ...
NC Personal Lines Exam Questions And
Answers 100% Pass
Example of Direct Loss - answer✔Loss due to fire destroying a building
Risk Sharing - answer✔B and G agree to share the cost of replacing a basketball goal if it is damaged. In
risk management terms this is __________
Replacement Cost - answer✔D has a property contract that agrees to pay her the full value of damaged
personal property at the current cost without depreciation. This type of property loss valuation is known
as:
Risk - answer✔The chance of or uncertainty concerning a financial loss.
In a split limits policy 50/100/50, the second number represents - answer✔the total limit for two or
more persons with bodily injury
Insurable Interest - answer✔The ability to insure property due to ownership
Declarations Page - answer✔Identifies the amount of premium to be paid, who or what is insured, and
the amount of insurance coverage.
Transferring Risk - answer✔Obtaining Insurance is a method of this _______.
Insurers allow the insured to move the risk of loss from the insured to the insurance company for a fee
(aka premium)
Example of Indirect Loss - answer✔Fire destroys a shoe repair shop forcing the business to close down.
During the suspension of operations the shoe repair shop cannot earn money. This loss of income is
referred to as which of the following?
Economic Loss - answer✔The destruction of property or a loss of income due to the destruction of
property.
Binder - answer✔Temporary evidence of insurances issued by an insurance producer. NC limits the
binder to 60 days for the date of insurance. Canceling a binder requires at least ten days notice.
Risk Reduction - answer✔Actions reducing the possibility of a loss. Like locking doors, installing alarm
system, replacing surge protectors.
Negligence - answer✔The key element that must be present for a person or entity to be held liable for
some action. Liability requires this to be present.
Specific Coverage - answer✔___________ ___________ contracts are designed to cover the one object
of property listed and the amount of coverage provided. More than one item of property could be listed
on the Declarations, but the amount paid for each item would be separate
125,000 - answer✔J has a Homeowner's policy with a $100,000 liability limit. J dug a hole in his front
yard. Unfortunately, a delivery man fell into the hole and was injured. Later the same day, another
delivery man falls into the same hole and is injured. Eventually the claims for the injuries resulted in a
$25,000 judgment for the injuries for the first delivery man and $100,000 judgment for the injuries for
the second man. The Homeowner's policy is a "single limit" contract. How much did the policy pay on
the claims?
Misrepresentation - answer✔The attempt by an applicant to deceive an insurance company about a
potential risk, generally occurs when the insurance is applied for by the proposed insured and the
applicant is not truthful about some aspect of the risk
Aggregate Limits Policy - answer✔An insurance policy that will pay a maximum amount for the life of the
policy.
The first number in a split limits policy indicates ________ - answer✔The amount paid for any one single
bodily injury.
Deductible - answer✔________ are specific amounts of money that reduces the amount paid on a claim.
For example, J may have had $5,000 in damages to her auto, but her policy has a $500 deductible. In this
case the policy will pay $4,500.
A method of sharing the risk btw the insurer and insured
At the time of the loss - answer✔Insurable interest must exist ______________ for property insurance
policy before a claim can be paid.
Actual Cash Value - answer✔Replaces damaged property minus the depreciation.
Salvage Value - answer✔An insurance company pays for a claim and takes possession of the damaged
property.
Over- coverage - answer✔If an individual has been paying for more coverage than needed the insurance
company must refund the difference plus 6% interest.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Thebright. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
