CHAPTER 1. Property and Casualty Exam Texas with solutions(100%
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Course
Texas Property
Institution
Texas Property
CHAPTER 1. Property and Casualty
Exam Texas with solutions(100%CHAPTER 1. Property and Casualty
Exam Texas with solutions(100%CHAPTER 1. Property and Casualty
Exam Texas with solutions(100%CHAPTER 1. Property and Casualty
Exam Texas with solutions(100%CHAPTER 1. Property and Casualty
Exam...
CHAPTER 1. Property and Casualty
Exam Texas with solutions(100%)
ACCIDENT - CORRECT ANSWERS-A sudden and unexpected event
ACTUAL CASH VALUE (ACV) - CORRECT ANSWERS-ACV is computed by
subtracting depreciation from the replacement cost.
ACV=DPR-RPC
ACV = R × (E - C) / E
Where:
ACV = actual cash value
R = replacement cost or purchase price of the item
E = expected life of the item
C = current life of the item
Actuaries - CORRECT ANSWERS-1.insurance statistician: a statistician who calculates
insurance premiums, risks, dividends, and annuity rates
ADVERSE SELECTION - CORRECT ANSWERS-used to protect the insurer from
people who are poor risks who are more likely to purchase insurance than average
risks. "People who may conceal their condition to get insurance."
AUTHORIZED AND NONAUTHORIZED COMPANIES(ADMITTED AND
NONADMITTED) - CORRECT ANSWERS-AUTHORIZED(admitted)company-have a
certificate of authority, meet the capital and surplus requirements required by state are
considered Authorized or admitted.
NONAUTHORIZED(NONADMITTED)-insurers who have not been approved to do
business in the state.
BINDER - CORRECT ANSWERS-An ORAL or WRITTEN agreement that provides
TEMPORARY evidence of insurance until a policy can be issued. It does not guarantee
, that a policy will be issued, but it is temporary until a contract can be underwritten from
home or office.
BLANKET VS SPECIFIC - CORRECT ANSWERS-BLANKET COVERAGE-provides
coverage for different classes of property under one policy.
SPECIFIC INSURANCE-is when you insure a specific item or specific kind of property.
BROKERS - CORRECT ANSWERS-Independant Producers sell insurance through
many different insurance companies. A producer acting as a broker represents the
insured in selecting the best coverage available from the various companies they
represent. Brokers do not have binding authority.
BURGLARY - CORRECT ANSWERS-The taking of property from a premise that is
closed and locked tight. There must be evidence of forced entry or exit. It also includes
forcing a security guard/employee to open a locked store.
CAPTIVE(EXCLUSIVE)AGENCY SYSTEM - CORRECT ANSWERS-represent on
particular insurer in a specfic geographical area. Captive agencies recruit insurance
producers who are trained and supervised by a company employee or a general agent.
PRODUCER CATEGORY
a captive or exclusive producer represents one insurance company and sells only that
company's insurance products. Represents the company, not the insured.
CASULTY INSURANCE - CORRECT ANSWERS-Protects you against liabilty for
BODILY INJURY (BI) and PROPERTY DAMAGE (PD)
CERTIFICATE OF INSURANCE - CORRECT ANSWERS-Document that serves to
provide evidence that you have purchased certain types of insurance coverages and
limits.
CHARACTERISTICS (ELEMENTS) OF INSURABLE RISKS - CORRECT ANSWERS-
To be Insurable, the risk must:
1.Be PREDICTABLE-an insurer must be capable of statistically predicting the possibility
of loss.
2.Be a CHANCE OCCURRENCE- the risk must be outside the insureds control. It must
be unexpected, accidental, or uncertain.
3.Not be CATASTROPHIC-Insurers typically will not insure risks that will expose them
to losses that may occur to large number of insureds at the same time.
4.Be MEASURABLE and DEFINITIVE- an insurable risk is a loss that has a definite
monetary value. The insurer must be able to measure or value a potential loss.
5.Be AFFORDABLE- Loss must cause a financial or economic hardship to the insured
or to the insureds family.
COINSURANCE CLAUSE - CORRECT ANSWERS-A clause in most insurance policies
that penalizes you for not having adequate coverage on your personal or private
property.
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