Virginia Property and Casualty Insurance
Define a fiduciary. - correct answer-An agent/broker who handles insurer's funds in a trust
capacity
Define adverse selection. - correct answer-Insuring risks more prone to losses than an
average risk.
Except for Fire Department, credit card and forgery charges, what is the basic deductible for
all forms? - correct answer-$250.00
For a nonpayment cancellation reason, how many days must an insurer provide an insured?
- correct answer-10 day in advance written notice
How are insurance companies defined? - correct answer-Where they are located, chartered,
or incorporated.
How is Actual Cost Value (ACV) calculated? - correct answer-Current Replacement Cost -
Depreciation = Actual Cost Value (ACV)
How is the loss payment calculated? - correct answer-(insurance carried ÷ insurance
required) x loss amount = loss payment
How long is newly acquired constructed property covered? (commercial) - correct answer-for
30 days
How many coverage parts are there in a Commercial Package Policy? - correct answer-7
coverage parts
How many days of a written notice are required to cancel a policy for nonpayment? - correct
answer-10 days
How many policy parts are in a monocline policy? (commercial) - correct answer-1 part
How much will the Fire Department Service Charge pay for the Fire Department to respond
to a fire at an insured's premises? - correct answer-$500.00
In regards to covered loss, an insured must provide a signed proof of loss statement within
what time? - correct answer-within 60 days of an insurer's request, send a signed proof of
loss statement
Name three types of hazards. - correct answer-1. Physical Hazard
2. Moral Hazard
3. Morale Hazard
, Personal Property of Others covers personal property that is located within how many feet of
the premises in an insured's care? (commercial) - correct answer-within 100 feet
Rental Value and Additional Living Expense coverage allows up to what percent of Coverage
A to be used for the loss of both fair rental value and additional living expenses? - correct
answer-20%
Under Coverage B, when is a garage used for private storage covered? - correct
answer-when it is rented to someone other than the occupant of the main dwelling
Under what age can a full time student be defined as an insured? - correct answer-age 24
What 7 coverage's does the Broad Form (02) expand to include? - correct answer-1. Aircraft
2. Riot or Civil Commotion
3. Smoke
4. Vandalism & Malicious Mischief
5. Vehicles
6. Volcanic Eruption
7. Windstorm or Hail
What acronym is useful in recalling the Broad Form Coverage Perils? - correct answer-B.B.
BICE-GOLF
What are Homeowner's coverage forms? - correct answer-different levels of protection ???
What are the 3 causes of Loss Forms? - correct answer-1. Basic DP 00 01
2. Broad DP 00 002
3. Special DP 00 003
What are the four elements of a contract? - correct answer-1. Offer and Acceptance
2. Consideration
3. Competent Parties
4. Legal Purpose
What are the terms of Liberalization? (commercial) - correct answer-If an insurer accepts to
broaden coverage during their policy period or [within 45 days prior to the effective date], it
will apply without having it to be endorsed on the policy.
What are the ways rates are determined? - correct answer-1. Payroll
2. Gross Sales
3. Value of Property
What boats are not excluded from coverage? - correct answer-rowboats and canoes
What coverage form is for Personal Liability? - correct answer-Coverage E
What coverage is called the Comprehensive Form? - correct answer-HO-5
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