TEXAS GENERAL LINES- PROPERTY AND CASUALTY QUESTIONS AND ANSWERS 100% VERIFIED.
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Module
Texas General Lines- Property and Casualty
Institution
Texas General Lines- Property And Casualty
TEXAS GENERAL LINES- PROPERTY AND CASUALTY QUESTIONS AND ANSWERS 100% VERIFIED.
risk - correct answer. uncertainty of financial loss, pure risk and speculative risk
Pure risk - correct answer. chance of loss ONLY
Speculative risk - correct answer. chance of loss or gain (INS...
TEXAS GENERAL LINES- PROPERTY
AND CASUALTY QUESTIONS AND
ANSWERS 100% VERIFIED.
risk - correct answer. uncertainty of financial loss, pure risk and speculative risk
Pure risk - correct answer. chance of loss ONLY
Speculative risk - correct answer. chance of loss or gain (INSURANCE COVERS
PURE RISK ONLY)
Open Peril - correct answer. all risk covers all perils except those specifically excluded
Hazard - correct answer. not causes of loss but are things that increase the chance of
peril happening
Moral - correct answer. dishonest tendencies; tendencies towards increased risk,
dishonest predisposition
Morale - correct answer. the attitude of carelessness; state of mind that causes
indifference toward loss, careless attitude (wet floor&still walking)
indemnity=reimbursement - correct answer. key principle in all insurance contracts,
insureds can only collect to the extent of their financial loss&cannot gain financially after
a loss
elements of insurable risk - correct answer. due to chance, definite and measurable,
statistically predictable, not catastrophic, randomly selected and large loss exposure
Law of large numbers - correct answer. the larger the number of people with similar
exposure to loss, the more predictable actual losses will be
Casualty - correct answer. the loss of and/or damage to property and resulting
liabilities
, Loss - correct answer. reduction of value, basis for a claim, destruction, or
disappearance of property or person insured in a policy or the reduction or destruction
must be due to a peril insured against
Insurable interest - correct answer. for an insurance policy to pay there must be an
insurable interest-financial risk of loss
-exist at the time of loss for property and casualty losses
Proximate cause - correct answer. first cause in an unbroken chain of events
Elements of a legal contract - correct answer. Competent Parties: 18+sane+sober
Agreement: composed of the offer(insured completes the application) and acceptance
(insurers issues policy)
Legal Purpose: transfer of risk is legal
Consideration: exchange of values (insured gives premium and information, the insurer
gives a promise to pay in the future)
Misrepresentation - correct answer. information that is not true. Has no effect on the
insurers decision to issue the policy.
Material misrepresentation - correct answer. -Information that is not true but would
have caused the insurer not to issue the policy
-usually is concealed (intentionally hidden) by the insured. May void the policy
Fraud - correct answer. an all out effort by one party to deceive and cheat the other
Warranty - correct answer. written into the policy, guarantees the insured will do or not
do something, usually only bound in commercial policies, breach of warranty may void
the policy
Binder - correct answer. temporary contract of insurancee pending issue of the policy,
usually issued by agent, may be written or verbal, good for 30 days in texas, can be
canceled by the insurer, does not guarantee a policy will be issued, ceases
automatically if a policy is issued/declined
Declarations - correct answer. May also be called the declarations page, declarations
sheet, or face policy, "information sheet", Purpose-tailors the policy to meet the specific
needs of an insured, contains the 6 Ps (Policy number/Parties: named insured and
insurer, mortgage or lien holder/Property description and its location/Policy term:
effective and expiration dates most policies are one year/ Policy limits and deductibles/
Premium)
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