Property and Casualty insurance exam questions and answers already passed

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Property and Casualty insurance exam questions and answers already passed Insurance ✔✔The transfer of risk through a legal contract Property ✔✔Covers real property and personal property aga... inst damage or loss resulting from covered causes of loss called perils casualty ✔✔covers non-property losses (3rd Party) Personal lines ✔✔Insurance for families and individuals Commercial Lines ✔✔Insurance for Business Risk ✔✔Uncertainty of financial loss Pure Risk ✔✔Chance of loss only (insurance only covers) Speculative Risk ✔✔Chance of loss or gain law of large numbers ✔✔as the number of homogenous loss exposures increases, the more accurate claims can be predicted from the group Perils ✔✔causes a loss Named Peril ✔✔lists the perils that are covered open peril ✔✔cover all perils except those specifically excluded by the policy hazard ✔✔Are not causes of loss but are things that increase the chance of a peril happening. Physical Hazard ✔✔something you can physically look at Moral Hazard ✔✔dishonest tendencies morale hazard ✔✔attitude of carelessness Direct Loss ✔✔immediate physical damage to property indirect loss ✔✔loss that happens after the direct loss but due to the loss of use of the property. Also called consequential proximate cause ✔✔the first cause in an unbroken chain of events Elements of a legal contract ✔✔Competent parties, Agreement, Legal Purpose, consideration Binder ✔✔temporary contract of insurance. Pending issue of the policy, good for 30 days DICE ✔✔4 major parts to an insurance policy Declarations ✔✔6 P's policy number, parties, property description, policy term, policy limits, premium Insuring Agreement ✔✔Promise to Pay, Perils, Liability Conditions ✔✔Rules of the Game, Insured's duties in a loss, Insurer's subrogation rights, mortgagees rights Exclusions ✔✔Contains property and perils not covered. Direct Liability ✔✔Insured is the wrongdoer Vicarious Liability ✔✔insured is responsible for actions of wrongdoer contractual liability ✔✔insured assumes another's liability under a written agreement Absolute Liability ✔✔liability w/o fault strict liability ✔✔product defect claims Legal Duty Negligence ✔✔owe an obligation to act or not act breach of duty negligence ✔✔failure to comply with the duty actual loss negligence ✔✔another suffers a loss proximate cause negligence ✔✔the breach of duty is the direct causer of the loss accident ✔✔event that is sudden and unexpected occurence ✔✔an event that happens over time Admitted Carrier ✔✔authorized insurer, issued a certificate of authority to transact business in the state. nonadmitted carrier ✔✔unautho [Show More]

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