SC Personal Lines exam questions with 100% correct answers

6 loss valuation methods actual cash value, replacement value, functional replacement value, market value, stated amount, agreed value waiver & estoppel a person has given up a known or legal right Brainpower Read More Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:15 Full screen 4 components of a legal contract agreement, consideration, competent parties, legal purpose 6 classes of insurers authorized(admitted), unauthorized(nonadmitted), domestic, foreign, alien, independent rating services 5 marketing distribution systems independent agency, exclusive/captive agency, managerial agency, general agency, direct response DP 1 extended coverage perils endorsement wind, civil commotion, smoke, hail, aircraft, vehicles, volcanic eruption, explosion, riot --- can purchase vandalism & malicious mischief after DP 2 broad form perils freezing, electrical, breakage, burglary (not theft), falling objects, ice, leakage DP 3 special form perils named perils are not covered DP 1 basic form perils fire, lightning, internal explosion HO policies on an open peril basis HO 3 dwelling & HO 5 3rd number in split limit liability property damage first number in split limit liability bodily injury per person second number in split limit liability bodily injury per accident 3 types of authority in agency relationship implied, apparent, expressed implied authority not written in contact, but expected of you expressed authority written in contract apparent authority not written in contract, not expected, but not corrected 4 types of hazards physical, moral, morale, legal physical hazard a physical condition that increases chance of loss moral hazard act of dishonesty increases chance of loss morale hazard act of carelessness increases chance of loss legal hazard acts of the legal system that increases chance of loss 5 methods of handeling risk share, transfer, avoid, retain, reduce HO policies that cover fire, lightning, WCSHAVVER, VMM, & FEBBOIL HO2, HO3 personal property, HO4, HO6, HO8* *HO8 does not cover FEBBOIL split limit liability the amounts of coverage for bodily injury & property damage for the other party 5 dwelling property coverages a - dwelling b - other structures c - personal contents d - fair rental value e - additional living expense 2 compensatory damages special & general special compensatory damage pays for? measurable out of pocket costs ex. doctor bills, prescriptions, general compensatory damage pays for? non measurable costs ex. pain & suffering, side affects a "risk" can be person, _______ , or ______ that is insured. property, activity the 2 types of risk speculative & pure which type of risks will insurance companies cover? pure which characteristic of an insurance contract requires the insured to accept the contract on a "take it or leave it" basis? contracts of adhesion which characteristic of an insurance contract states that unequal values are exchanged? aleatory contracts which characteristic of an insurance contract states that only one party is legally bound to the agreement? unilateral contract