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Virginia Personal Lines Agent Licensing Course Questions And Answers With Verified Solutions Already Passed!!! $11.49   Add to cart
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Virginia Personal Lines Agent Licensing Course Questions And Answers With Verified Solutions Already Passed!!!
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Virginia Personal Lines Agent Licensing Course Questions And Answers With Verified Solutions Already Passed!!!

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  • October 1, 2024
  • 30
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • Personal lines
  • Personal lines

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Virginia Personal Lines Agent Licensing
Course Questions And Answers With Verified
Solutions Already Passed!!!
What is insurance? - ANSWER✔✔Insurance is a social device for spreading the
chance of financial loss among a large number of people. By purchasing insurance,
a "person" shares risk with a group of others, thereby reducing the individual
potential for disastrous financial consequences.


What is insurance based on? - ANSWER✔✔the law of large numbers; by
combining a large number of homogeneous units, the insurer is able to make
predictions of possible loss. Using the law of large numbers, insurers are able to
calculate probable losses and to establish the rates for premiums that will cover
their losses and their operating expenses.


What is underwriting? - ANSWER✔✔the process of selecting certain types of
risks that have historically produced a profit and rejecting those risks that do not fit
the underwriting criteria of the insurer; normally produces a favorable loss ratio


Adverse selection - ANSWER✔✔assess risk and charge too little; the tendency of
insureds with a greater-than-average chance of loss to purchase insurance


Reinsurace - ANSWER✔✔a contract of indemnity against liability by which an
insurance company procures another insurance company to insure it against loss or
liability by reason of the original insurance; insurance companies have a company
that insures them


What are the 6 parts of an insurance contract? - ANSWER✔✔Declarations,
Insuring Agreement, Conditions, Exclusions and Limitations, Definitions,
Endorsements

,Declarations - ANSWER✔✔includes the identity and address of the named
insured, the policy term or period, the amount of insurance or limits of liability, the
policy premium, and any applicable deductibles; include property description and
any applicable deductibles as well as list any endorsements; who is insured, what is
insured, deductibles... etc.


Insuring Agreement - ANSWER✔✔describes the covered perils, or risks assumed,
or nature of coverage, or makes some reference to the contractual agreement
between insurer and insured; what insurer will cover for you.


Conditions - ANSWER✔✔set provisions, rules of conduct, duties, and obligations
for the parties; describes things such as the policy period and territory, the insured's
obligation to provide proof of loss, how settlements are handled when other
insurance is involved, and the right of each party to cancel the policy


Exclusions and Limitations - ANSWER✔✔Exclusions: may describe property ,
perils, hazards, or losses arising from specific causes that are not covered by the
policy; Limitations; may eliminate or reduce coverage, but only under certain
circumstances or when specified conditions apply; Exclusions and Limitations:
when the insurance company wont cover you.


Definitions - ANSWER✔✔Define important terms used in the policy language;
explanation


Endorsements - ANSWER✔✔used to add, delete, or change any of the policy
parts; written modification of the policy; additional coverages to contract --> extra
money premium.


Peril - ANSWER✔✔potential cause of loss

, Hazard - ANSWER✔✔increases the seriousness of a loss or increases the
likelihood that a loss will occur; increased potential of peril


Direct Loss - ANSWER✔✔direct consequence of a particular peril (example: fire
damage to an apartment building


Indirect Loss - ANSWER✔✔loss that is a result of a covered peril but is not
caused directly and immediately by that peril (example: loss of rental income)


Salvage - ANSWER✔✔If the insurer pays a loss on behalf of the insured, the
insurer is entitled to the salvage to reduce the claim (example: totaled care -->
belongs to insurance company)


Abandonment - ANSWER✔✔insured cannot simply abandon the property to the
insurance company in exchange for the full-insured value.


Pair or Set Clause - ANSWER✔✔if part of a pair or set is lost or damaged, the loss
will be valued as a fair proportion of the total value of the set, giving consideration
to the importance of the damaged article to the set; initial - appraised = payout


Deductible - ANSWER✔✔Self-insured part of an insured loss, the insured must
bear this loss; amount you pay before insurance comes in --> you are responsible.


Vacancy and Unoccupancy - ANSWER✔✔Vacancy: building is void of contents
and people; 60 or more days; Unoccupancy: premises are void of people, will not
affect the coverage provided by the policy.

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