1 Flashcards
What is property and casualty insurance?
A type of insurance that covers loss or damage to property and protection against legal liability.
True or False: Property insurance protects against theft and damage to physical assets.
True
Fill in the blank: The primary purpose of casualty insurance is to provide __________ coverage.
liability
What is the main difference between property insurance and casualty insurance?
Property insurance covers physical assets, while casualty insurance covers liability for injuries or damages.
What types of events are typically covered under a standard homeowners insurance policy?
Fire, theft, vandalism, and certain natural disasters.
What is a deductible in property and casualty insurance?
The amount the insured must pay out of pocket before the insurance coverage kicks in.
Multiple Choice: Which of the following is NOT typically covered by a standard auto insurance policy? A) Collision damage B) Theft C) Routine maintenance D) Liability
C) Routine maintenance
What is an insurance premium?
The amount paid by the insured to the insurer for coverage.
True or False: Liability insurance is optional for businesses.
False
What does ‘underwriting’ refer to in insurance?
The process of evaluating risk and determining the terms of coverage.
Fill in the blank: A __________ policy provides coverage for multiple types of risks, including property and liability.
package
What is the purpose of a claims process in insurance?
To allow policyholders to report losses and receive compensation according to their policy terms.
Multiple Choice: Which of the following is a common exclusion in property insurance? A) Earthquake B) Fire C) Theft D) Vandalism
A) Earthquake
What does ‘actual cash value’ mean in the context of property insurance?
The replacement cost of an item minus depreciation.
True or False: Business interruption insurance covers lost income due to a covered event that disrupts normal operations.
True
What is the difference between ‘named perils’ and ‘all risks’ coverage?
Named perils covers only specific risks listed in the policy, while all risks covers all risks except those explicitly excluded.
Fill in the blank: The __________ clause in a property insurance policy requires the insured to maintain the property in good condition.
maintenance
What is an umbrella insurance policy?
A type of insurance that provides additional liability coverage above the limits of other policies.
Multiple Choice: Which of the following is a benefit of having renters insurance? A) Covers the building structure B) Provides liability protection C) Covers home maintenance D) None of the above
B) Provides liability protection
What is the significance of subrogation in insurance?
It allows the insurer to recover costs from a third party responsible for a loss after compensating the insured.
True or False: Flood damage is typically covered under standard homeowners insurance policies.
False
What does ‘replacement cost’ mean in property insurance?
The cost to replace an asset without deducting for depreciation.
Fill in the blank: Liability insurance protects against __________ claims.
third-party
What is the role of an insurance adjuster?
To assess damage and determine the amount of compensation to be paid on a claim.
Multiple Choice: Which type of insurance would best cover injuries occurring on a business’s premises? A) Property Insurance B) Casualty Insurance C) Health Insurance D) Life Insurance
B) Casualty Insurance
What is the term for the maximum amount an insurer will pay for a covered loss?
Coverage limit
True or False: Comprehensive auto insurance covers damages from non-collision incidents.
True
