Insurance - answer-the transfer of financial responsibility associated with a potential of a lost to an insurance company, which in turn spreads the costs of unexpected losses to many individuals.
Indemnity - answer-A provision in an insurance policy that states an insured is permitted to collec...
MAINE PROPERTY AND CASUALTY LICENSING
TEXTBOOK
Insurance - answer-the transfer of financial responsibility associated with a potential of a lost to
an insurance company, which in turn spreads the costs of unexpected losses to many
individuals.
Indemnity - answer-A provision in an insurance policy that states an insured is permitted to
collect only to the extent of their financial loss and cannot make financial gains.
Insurable Interest - answer-Any interest an insured may have in property that is the subject of
insurance. Such as a monetary, blood relative, or business interest.
Hazard - answer-is a condition or situation which creates or increases the probability of or
extent of a probable loss from a peril. Physical, moral, morale.
Peril - answer-A specific cause of loss
Named Peril - answer-is a term used in property insurance to describe the bredth of coverage
provided under an insurance policy form that insures against any risk of loss that is not
specifically excluded.
What are the four elements considered in establishing negligence? (tort) - answer-Legal Duty,
standard of care, proximate cause, actual loss of damage
Actual Cash Value - answer-method of valuation reinforces the principle of indemnity because
it recognizes the reduction of value of property as it ages and becomes subject to wear and tear
and obsolescence. Current replacement cost- depreciation= ____________
Replacement Cost - answer-is defined as the cost to replace damaged property with like kind
and quality at todays price, without any deduction for depreciation.
Per Occurance - answer-is a "sub limit" in a liability policy that puts a ceiling on the payment for
all claims that arise from a single accident.
Per Person - answer-the maximum amount available for payment of bodily injury to a single
person in an accident, regardless of the policy limit stated in the policy for bodily injury claims.
Deductible - answer-the amount of an insured loss for which the insured is financially
responsible before an insurance policy provides coverage.
, Declarations - answer-The section of an insurance policy containing the basic underwriting
information, such as the insureds name, address, amount of coverage and premiums, and a
description of insured locations.
Conditions- - answer-the section of an insurance policy that indicated the general rules or
procedures that the insurer and insured agree to follow under the terms of the policy.
Proof of Loss - answer-a sworn statement that must usually be furnished by the insured to an
insurer before any loss under a policy can be paid.
Subrogation - answer-is the insurers right to seek damages from third parties, stemming from
the fact that the insured has accepted payments from the insurer.
Binder - answer-a temporary agreement issued by an agent or insurer providing temporary
coverage until a policy can be issued.
Dwelling - answer-The ______________ policy was developed by the ISO and can insure the
dwelling only, contents only, or both. There are 3 separate coverage forms available under the
dwelling program that provide basic, broad, or special form coverage.
Yes - answer-Are reasonable debris removal expense costs covered a loss is covered?
No - answer-Is land property covered under dwelling policy forms?
30 days - answer-All loses will be paid within ___________ of receiving the proof of loss or
after.
True - answer-If more than one coverage under a policy can respond to the same loss, the
insurer will pay no more than the actual loss. True or False?
Business Income Coverage Form - answer-covers the consequential loss of business income
that occurs when a business must suspend operations because of a direct loss. These forms are
also called time element forms because of the direct relation of the time a business is unable to
operate to the amount of the loss; the longer a business is down, the bigger the amount of loss
is.
Puerto Rico and Canada - answer-Policy territory includes what two countries outside the US?
Bill of Landing - answer-is a contract for the transport of goods between the shipper and the
carrier.
5 - answer-The superintendent of insurance is the head of the bureau of insurance, appointed
by the governor for a ____ year term.
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