Indiana Property and Casualty Insurance Exam
- ANS-Punitive Damages
● accounts, bills, currency, deeds, money, securities● underground pipes● automobiles held for
sale● animals, unless owned by others and boarded by the insured, or if owned by the insured,
it is only "stock" while inside of buildings● bridges, roadways, paved surfaces● illegally
transported contraband used in trade● cost of grading backfilling or filling land, water● land,
growing crops or lawns● personal property while airborne or waterborne● retaining walls not
part of the building described in the declarations● cost or research to restore or replace valuable
records● building foundations, structures, machinery or boilers if their foundations are below the
lowest basement floor or below the surface of the ground if there is no basement● vehicles or
self-propelled machines, including aircraft or watercraft, that are licensed for use on public
roads, are principally operated away from the premises are not made, proce - ANS-Property
Excluded under the Commercial Building and Business Personal Property Form
$5,000 maximum coverage is provided when a non-owned trailer of the insured is used in the
business of the insured, is in their care, custody and control and the insured is responsible for
the trailer under a contract. - ANS-Non-Owned Detached Trailers
A $1,000 maximum, including debris removal, to be applied for outdoor property extensions
such as outdoor fences, radio and television antennas and signs, whether attached to the
building or not, are covered under the basic policy which are destroyed only by these perils:●
fire● lightning● explosion● riot● civil commotion or● aircraft. There is only a $250 maximum loss
payment per any one tree, shrub or plant. - ANS-Outdoor Property
A $10,000 limit on premises, $5,000 off premises for loss to the insured from the insured's
customer from whom the insured is unable to collect payments due, includes collection
expenses. - ANS-Accounts Receivable
A binder is temporary coverage which allows that coverage to be put in force by agents who
have a binding authority from an insurance company. A binder is the acknowledgment that
immediate coverage is in effect pending the future issuance of a policy. - ANS-Binders
A commercial enterprise typically insures property it owns by purchasing a commercial property
policy under which coverage may be indicated as either specific or blanket coverage. -
ANS-Blanket vs. Specific Limits
A decrease or loss in value - ANS-Depreciation
a financial loss that results from the physical damage, destruction, or theft of the property -
ANS-Direct loss
,a large extra amount of coverage - ANS-Excess Liability
A material fact is a statement that would have changed the underwriting basis of a policy, had
the company known of the material fact at the time of underwriting, and the offer made would
have varied form the offer originally presented. - ANS-Material Fact
a new coverage trigger and policy form of coverage in the 1980's. - ANS-Claims Made Form
a permanent injury occurs for which a scheduled payment is made, and the worker can return to
work. - ANS-Permanent Partial Disability
A principle stating that the larger the number of similar exposure units considered, the more
closely the losses reported will equal the underlying probability of loss. - ANS-Law of Large
Numbers
A provision that spells out an insured's duty to provide the insurer with reasonable notice in the
event of a loss. - ANS-Notice of Claim
a risk that presents the chance of loss but no opportunity for gain - ANS-Pure Risk
a shipping contract that contains all shipping information between the consignor (person
sending the goods) of the goods, carrier and consignee. - ANS-Bill of Laden
a situation in which either profit or loss is possible - ANS-Speculative Risk
a sworn statement that must usually be furnished by the insured to an insurer before any loss
under a policy can be paid - ANS-Proof of loss
Actual loss is covered due to physical loss of new buildings whether they are completed or still
under construction. - ANS-Alterations and New Buildings
Additional insured is a third party who is usually added to a commercial policy because they
also have loss potential. - ANS-Additional insured
additional Living Expenses and Fair Rental Value are covered for up to two weeks if the
prohibited use of the insured residence was the result of direct damage to neighboring premises
by a covered peril. - ANS-Civil Authority Prohibits Use
All goods and merchandise owned by the insured and for which the insured is legally liable are
covered when shipped with rating methods based on annual, monthly or trip transit basis
available. - ANS-Shipper's Form
, All property and casualty insurance contracts are contracts of indemnity and their purpose is to
make the insured "whole" again financially; to reimburse the loss while not making the insured
better off than they were prior to the loss. - ANS-Indemnity
allow a $2,500 extension of coverage to the business personal property of the insured's officers,
partners and employees (theft is excluded). This amount also applies to the personal property of
others left in the insured's care, custody and control. Personal effects means personally owned
items like clothing or items normally carried on their person with them. - ANS-Personal Effects
An individual is liable for injury to another, or to their property, from both intentional acts and
negligence. - ANS-Personal Liability
an individual policy that pays damages arising from a "medical incident" in which the required
level of professional service was not delivered. - ANS-Physicians, Surgeons, and Dentist
Professional Liability Insurance
an insured is paid damages upon bodily injury caused by an uninsured operator or a watercraft.
- ANS-Coverage D Uninsured Boaters
An insured must prove to an insurance company that they have a legitimate interest in
preserving the property they seek to insure at both the time the coverage is purchased as well
as when loss may occur in the future. - ANS-Insurable Interest
any community that promises to enforce land control measures, which are designed to develop
future land projects away from flood prone areas, is eligible. - ANS-National Flood Program
anyone with goods to ship can hire companies for that purpose. - ANS-Common Carriers
are "subjective" or very personal and are compensation for the injured party's "pain and
suffering." - ANS-General Damages
As opposed to covering the goods of the customer from loss this floater instead covers the
trucker's liability for the goods which are being transported. Other names for this cover are
Motor Vehicle Cargo Policy, Legal Liability and Motor Truck Cargo Policy-Truckers Form. It can
cover both organizations and individuals for merchandise they ship via a common carrier or on
their own trucks. - ANS-Motor Truck Merchandise Floater
at the time of a covered loss provides a $2,500 maximum reimbursement, without a deductible,
if the insured is obligated to pay such a charge due to contract or required by local law. -
ANS-Fire Department Service Charge (BOP)
Blanket limit policies cover multiple locations simultaneously under a single policy with one limit
that applies to all locations and all business personal property at all the insured locations -
ANS-Blanket limit
