NC PROPERTY INSURANCE- COMMERCIAL ACTUAL EXAM|140 VERIFIED EXAM QUESTIONS AND 100% COREECT ANSWERS,ALL GRADED A+|GUARANTEED SUCCESS|LATEST UPDATE
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NC PROPERTY INSURANCE- COMMERCIAL
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NC PROPERTY INSURANCE- COMMERCIAL
NC PROPERTY INSURANCE- COMMERCIAL ACTUAL EXAM|140 VERIFIED EXAM QUESTIONS AND 100% COREECT ANSWERS,ALL GRADED A+|GUARANTEED SUCCESS|LATEST UPDATE
Law of Large Numbers - ANSWER-The larger the number of people with a similar exposure to loss, the more predictable actual losses will be.
I...
NC PROPERTY INSURANCE- COMMERCIAL
ACTUAL EXAM2024-2025|140 VERIFIED EXAM
QUESTIONS AND 100% COREECT
ANSWERS,ALL GRADED A+|GUARANTEED
SUCCESS|LATEST UPDATE
Law of Large Numbers - ANSWER-✔The larger the number of people with a similar
exposure to loss, the more predictable actual losses will be.
Insurance - ANSWER-✔Transfers the risk of loss from an individual or business
entity to an insurance company
The three elements of insurable risk are - ANSWER-✔1) Financial 2) Blood (relative)
3) Business
Risk - ANSWER-✔The uncertainty or chance of a loss occurring
Types of risks are - ANSWER-✔1) Pure risk 2) Speculative risk
What type of risk does insurance cover? - ANSWER-✔Pure risk
What is pure risk? - ANSWER-✔It can only result in a loss or no change
What type of risk is not insurable? - ANSWER-✔speculative risk
What is speculative risk? - ANSWER-✔Opportunity for loss or gain. For example,
gambling.
What is a peril? - ANSWER-✔a specific cause of loss
What is a hazard? - ANSWER-✔conditions or situations that increase the probability
of a loss occurring
What is a loss? - ANSWER-✔reduction, decrease or disappearance of value of the
person or property insured.
, What is indemnity? - ANSWER-✔provision in an insurance policy that states that in
the event of loss, an insured can only collect to the extent of the financial loss. The
insured is not allowed to gain financially.
Subrogation - ANSWER-✔insurer's legal right to seek damages from third parties
after it has reimbursed the insured.
Accident - ANSWER-✔The sudden, unplanned and unexpected event not under the
control of the insured. Neither expected or intended.
Occurrence - ANSWER-✔losses caused by continuous or repeated exposure to
conditions neither intended or expected.
Direct loss - ANSWER-✔direct, physical damage to buildings and/or personal
property
Indirect Loss (consequential) - ANSWER-✔results of a direct loss
What is the most prevalent indirect loss for homeowners? - ANSWER-✔Extra living
expense that may be incurred by the insured while the home is being repaired.
What is the primary type of indirect loss for commercial property? - ANSWER-✔The
loss of profits a business may suffer from closing business while repaired.
General damages - ANSWER-✔compensates an injured person for pain & suffering,
mental anguish and disfigurement
Open Peril - ANSWER-✔ANY risk of loss not specifically excluded
Named Peril - ANSWER-✔Specific covered perils. There is no coverage for unlisted
perils
Special damages - ANSWER-✔specific out-of-pocket expenses for medical,
miscellaneous and loss of wages
Property damage loss - ANSWER-✔value of property and loss of use
Punitive damages - ANSWER-✔form of punishment for extreme, outrageous
behavior, gross negligence or willful intent
Negligence - ANSWER-✔failure to use the care that a reasonable, prudent person
would have taken under similar circumstances
Burglary - ANSWER-✔forced entry into or out of the premises of another with
felonious intent. *Must have visible signs of forced entry or exit*
, Robbery - ANSWER-✔taking of property from care or custody of a person through
threatening or causing bodily harm.
Mysterious disappearance - ANSWER-✔disappearance of property without
knowledge of how it disappeared. *Excluded from most policies*
Theft - ANSWER-✔any act of stealing that encompasses both burglary and robbery
Vacancy - ANSWER-✔No people and no property stored for a period of time
(usually 60 days)
Unoccupancy - ANSWER-✔nobody living or working in structure for a period of time,
but some property is stored.
Blanket insurance - ANSWER-✔A single property policy that provides coverage for
multiple classes of property at one location or multiple classes at multiple locations.
Specific insurance - ANSWER-✔Property policy that covers a specific kind or unit of
property for a specific amount of insurance.
Loss valuation - ANSWER-✔How a loss to an insured property will be valued at the
time of loss. It is also a factor in determining the premium and amount of insurance
required
Actual cash value - ANSWER-✔recognizes reduction of value as property ages and
wear & tear
Formula for Actual Cash Value (ACV) - ANSWER-✔Current replacement-
depreciation= ACV
Replacement cost - ANSWER-✔cost to replace damaged property with like kind and
quality at today's price without deduction for depreciation. * May provide excess of
acv
Market Value - ANSWER-✔amount a willing buyer would be willing to pay to a
willing seller for the property prior to loss. *seldom used*
Stated value - ANSWER-✔An amount of insurance scheduled in a property policy
that is not subject to any coinsurance requirements in the event of a covered loss.
*scheduled amount is the max insurer will pay*
Salvage value - ANSWER-✔Estimated value an asset will realize upon its sale at the
end of its useful life. * may be sold as whole or in part*
Absolute liability - ANSWER-✔imposed on defendants engaged in hazardous
activities such as harboring wilding animals, using explosives etc.
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