SC P&C Insurance Exam Study Guide Exam And Actual Answers.
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Course
P&C License
Institution
P&C License
Abandonment - Answer the abdication of insured property into the hands of another, or into the possession of no one in particular
Absolute Liability - Answer Liability that arises from an extremely dangerous situation. Often found in cases involving explosives. Also known as "strict" liabi...
SC P&C Insurance Exam Study Guide
Exam And Actual Answers.
Abandonment - Answer the abdication of insured property into the hands of another, or into the
possession of no one in particular
Absolute Liability - Answer Liability that arises from an extremely dangerous situation. Often found in
cases involving explosives. Also known as "strict" liability. For example, you are absolutely liable if you
keep a wild animal as a pet.
Accident - Answer an unplanned, unforseen event which occurs suddenly and at a specific place
Actual Cash Value - Answer the required amount to pay damages for property loss, which is calculated
based on the property's current replacement value minus depreciation
Additional Coverage - Answer a provision in an insurance policy that allows for more coverage for a
specific loss expense without an increase in premium
Additional Insureds - Answer individuals or business that are not named as insured on the decleration
page, butr are protected by the policy, usually in regard to a specific interest
Adhesion - Answer A contract offered on a "take-it-or-leave-it" basis by an insurer, in which the
insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in
favor of the insured.
Admitted Insurer - Answer An insurer to which a state insurance department has granted a license to
do business within that state.
Adverse Selection - Answer In general, the tendency for people with the greatest probability of loss to
be the ones most likely to purchase insurance.
,Agent - Answer an individual who is licensed to sell, negotiate, or effect insurance contracts on behalf
of an insurer
Aggregate Limit - Answer the maximum amount an insurer will pay for all covered losses during the
covered policy period
Agreed Value - Answer A property policy with a provision agreed upon by the insurer and insured as to
the amount of insurance that represents a fair valuation for the property at the time the insurance is
written.
Aleatory - Answer A contract in which participating parties exchange unequal amounts. the amount the
insured will pay in premiums is unequal to the amount the insurer will pay in the event of a loss.
Alien Insurer - Answer an insurance company that is incorporated outside the U.S.
Apparent Authority - Answer The appearance or the assumption of authority based on the actions,
words, or deeds of the principal or because of circumstances the principal created.
Appraisal - Answer an assesment of property to determine either the correct amount of insurance to
be written or the amount of loss to be paid
Arbitration - Answer A process, agreed to by parties to a dispute in lieu of going to court, by which a
neutral person or body makes a binding decision
Assignment - Answer the transfer of legal right or interest in an insurance policy, in P&C ususally only
valid with prior written consent of the insurer
Authorized Insurer - Answer An insurance company that has qualified and received a Certificate of
Authority from the Department of Insurance to transact insurance in the state.
Auto - Answer a land motor vehicle, trailer or semi-trailer designed for use on public roads
, Avoidance - Answer A method of dealing with risk by deliberately keeping away from it (e.g. if a person
wanted to avoid the risk of being killed in an airplane crash, he/she might choose never to fly in a plane).
Bailee - Answer One who holds the personal property of another for a specific purpose.
Beneficiary - Answer the one who recieves the proceeds from an insurance policy
Binder - Answer A temporary insurance contract that forms an oral or wirtten agreement between the
insurance company and the customer.
Blanket Bond - Answer a type of bond that covers losses caused by dishonest employees
Blanket Insurance - Answer A single property insurance policy that provides coverage for multiple
classes of property at one location, or provides coverage for one or more classes of property at multiple
locations.
Bodily Injury Liability - Answer Insurance that protects a driver from claims resulting from injuries or
deaths for which the insured is at fault
Boycott - Answer An unfair trade practice in which one person refuses to do business with another
until he or she agrees to certain conditions.
Builder's Risk Coverage Form - Answer This coverage form provides coverage for buildings that are
under construction. Can also be used to cover a building while additions and alterations are being made
to the structure.
Building and Personal Property Coverage Form - Answer A commercial property form that covers
buildings, and/or their contents.
Burglary - Answer entering a building unlawfully with intent to commit a felony or to steal valuable
property
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