Property and Casualty Exam Questions and answers, 100% Accurate, rated A

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Property and Casualty Exam Questions and answers, 100% Accurate, rated A the one basic characteristic of any type of insurance is that the insured is returned to the same status that existed prio... r to the loss, but without a chance for gain or profit - ✔✔-true which of the following coverages does an open peril policy provide? - ✔✔-perils other than those specifically named as being excluded determine the actual cash value in the following situation: original price of office equiptment when purchased 8 years ago- 9,000. depreciated amount at time of fire-5,000 current replacement cost 12,000 - ✔✔-7,000 liquor liability - ✔✔-need for a dram shot, liquor, or package store inherent vice or defect - ✔✔-iron rusting, milk going sour, rubber breaking down are all inherent vices how is hitting an animal on the road covered? - ✔✔-other than collision otc medicare supplement insurance - ✔✔-aka medical gap insurance. must include core benefits ordinance or law - ✔✔-an endorsement for building code upgrades loss sustained/discovery forms under crime coverage - ✔✔-loss is for later than the policy period. discovery is for before the policy (loss is later, discovery before) designated brush fire or civil unrest areas - ✔✔-qualifying areas under the fair plan stop loss provision - ✔✔-used in health insurance to limit the maximum amount of money the insured would have to pay out of pocket on a health claim in any particular claim shortages of inventory - ✔✔-under crime insurance the employee dishonesty endorsement never covers can the mortgagee still collect if the insured burns their house down - ✔✔-yes, the mortgage clause is a standard provision otc covers - ✔✔-earthquake, flood, hail, theft, hitting an animal, gunshots (no collision or upset) law of large numbers - ✔✔-the greater the number of insured the more accurately the prediction where does a driver have coverage? - ✔✔-U.S. Canada and US possessions eg puerto rico, guam what is excluded under commercial general liability? - ✔✔-pollution-with the exception of fuel spilled during normal operations. Pollution is normally covered under cpp or builders risk what is the midi-tail on claims made? - ✔✔-provides 5 years coverage for something reported during minitail speculative risk - ✔✔-chance for loss or gain commercial package - ✔✔-modular policy Binder - ✔✔-a temp insuring contract (written or oral) Hazard - ✔✔-anything that increases a chance for loss OTC - ✔✔-anything causing loss or damage to the car, except collision you have liability only and borrow a car and collide with another. which pays? - ✔✔-the borrowed cars insurance is primary basic broad special: which has the broadest coverage? - ✔✔-special gap insurance - ✔✔-pays the difference between the amount an insurer pays on a totaled car and the amount owed on the loan or lease eligibility/enrollment period - ✔✔-used in life and health group benefits without having to prove insurability symbol 9 - ✔✔-non-owned autos the lender on a home is called - ✔✔-mortgagee or mortgage holder multiple employer trust - ✔✔-a legal entity of small biz owners grouped together to buy insurance what percentage must vacant for a building to be called vacant? - ✔✔-70% size limits for business owners policy - ✔✔-6 stories, 100,000 sq feet on offices, 25,000 sq feet and 3 million dollars gross sales for mercantile space (store) Dp-1 covers - ✔✔-fire, lightning, and internal explosion dp1, 2, 3 all dwelling forms cover? - ✔✔-loss of rental income third party - ✔✔-the injured party. to whom liability insurance pays claims Personal property - ✔✔-property that can move eg furniture, clothes, paintings, etc why is yacht like ocean marine, even though yacht is a personal line? - ✔✔-the structure of the policy is the same; hull covers damage to the vessel. P and C covers liability and workers comp. A yacht policy can be used for organized racing while ocean marine cannot. Medical Payments in boat owners insurance covers? - ✔✔-covers medical payments and injury for insured and others on a personal boat. does not cover business use or competitive racing. Protection and Indemnity on Ocean Marine or Yacht - ✔✔-Liability and workers comp. portion of ocean marine or yacht policies. code section 770 - ✔✔-when buying property that is financed, a lender cannot force the purchaser to buy insurance from a particular agent or broker part of protection and indemnity - ✔✔-worker compensation in a yacht policy elimination period - ✔✔-used in disability income health insurance. that time period benefits are not paid. also called the waiting period did over should - ✔✔-did over should is the fraction of the loss the company pays. the remaining is paid by the insured.( take what they did carry over what they should have carried. Occupational disability income contract - ✔✔-a disability income policy that will pay benefits whether on or off the job. Guaranteed renewable insurance contract - ✔✔-a life or health insurance policy that cannot be changed except for the rate. does the fair plan cover vandalism and mischief - ✔✔-yes, during civil unrest ( riots) you will need it. Misc Vehicle - ✔✔-Motorcycle atvs (not autos, not mobile equiptment) Open Peril - ✔✔-all perils except those specifically excluded. Whats the penalty for not carrying the amount required in a coinsurance clause? - ✔✔-you become a coinsurer and pay a portion of the loss Consequential loss - ✔✔-a consequence of a direct loss eg. a store loses business income after a fire. personnel loss - ✔✔-loss of an employee do corporations have absolute liability? - ✔✔-Yes What is embezzlement? - ✔✔-employee dishonesty, which is not covered by a crime policy unless an employee dishonesty form is attatched. (does not cover shortages of inventory). Deductible - ✔✔-a specified amount of money that is pa [Show More]

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