Exam (elaborations)
Property and casualty insurance Exam Questions and Answers
- Course
- Institution
Property and casualty insurance Exam Questions and Answers
[Show more]
1 review
By: Americannursingaassociation • 4 days ago
Content preview
Property and casualty insurance Exam Questions andAnswers 2024-2025
Specific insurance ......answer.....This type of insurance designates a particular
item to be insured
Blanket insurance ......answer.....This type of insurance covers more than one
item of property at a single location or one more items of property at multiple
locations.
Speculative ......answer.....possibility of both gain and loss. Not insurable.
Pure ......answer.....only the possibility of loss. Insurable.
What are the 5 methods of managing or handling risk? ......answer.....avoid,
control, retain, and transfer risk.
Hazard ......answer.....A condition or situation which increases the chance for
loss
Physical Hazards ......answer.....a hazard that arises from the condition,
occupancy, or use of the property itself.
ex: skateboard left on the steps
,Moral Hazards ......answer.....when an individual through carelessness or by
irresponsible actions can increase the possibly for a loss.
ex: person who drives carelessly just because they know they are insured.
Morale Hazards ......answer.....when a person might create a loss situation on
purpose just to collect from the insurance company.
ex: Prearranged, faked theft of someone's old vehicle so they can get an
insurance payout to buy a new vehicle.
Replacement Cost ......answer.....The amount of money it would take to replace a
damaged or destroyed item with one of like kind and quality AT THE TIME OF
LOSS. No deduction for depreciation.
Actual Cash Value (ACV) ......answer.....Replacement Cost, minus depreciation.
Pair and Set Clause ......answer.....Loss to one item of a pair or set does not
constitute loss to the entire pair or set.
Appraisal ......answer.....A method of resolving disputes between insurers and
insureds over the amount owed on a covered loss.
,-both parties select an appraiser
-the two appraisers select an umpire
-if the appraisers do not agree, the umpire is consulted
-the amount agreed on by 2 out of 3 is the amount that will be paid
Subrogation ......answer.....An insurer's right to recover the amount of its loss
payment from the third party who is legally responsible for the loss.
Arbitration ......answer.....this condition is similar to the Appraisal Condition but it
is not limited to disputes over the value of the loss. It may also be used to resolve
other areas of disagreement between the insured and the insurance company.
What does WC SHAVVER stand for? ......answer.....Windstorm, Civil commotion,
Smoke, Hail, Aircraft, Vehicles, Volcanic eruption, Explosion, Riot
What does BIG AFFECT stand for? ......answer.....Burglar damage, Ice & snow
weight, Glass breakage, Accidental discharge, Falling objects, Freezing of pipes,
Electrical damage, Collapse, Tearing apart.
Insolvency ......answer.....A financial state that occurs if liabilities are greater than
assets.
, Law of Agency ......answer.....Knowledge of the Agents is Knowledge of the
Principal (Insurance Company)
Principal ......answer.....Insurance Company
What is the ISO? ......answer.....Insurance Services Office which is an
organization established for the benefit of its member insurance companies. This
organization gathers statistics, provides loss costs, drafts policy forms and
coverage provisions and conducts inspections for rate making purposes.
Coinsurance Clause ......answer.....Requires the insured to carry a minimum
specified amount (generally 80%) of the replacement cost value of the insured
property in order for partial losses to be paid in full.
Estoppel ......answer.....A legal bar to changing or denying a fact because of one's
own previous actions or words to the contrary.
ex: If an insurance company representative intentionally or unintentionally gives
the impression that a specific fact exists when it does not and a client relies on
that impression and is damaged a result.
Binder ......answer.....A temporary contract of insurance, oral or written, offered
by an insurer pending issuance of the policy. Usually written for a period of 30-60
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 IANNYAGA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $19.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now