Chapters 1-3 Quiz Flashcards
What increases the likelihood of Severity
Hazard
Risk with chance of financial loss or gain
Speculative Risk
Risk with only chance of financial loss
Pure Risk
Hazard from irresponsibility (cell phone)
Morale Hazard
Hazard from Character flaws (arson, fraud)
Moral Hazard
Hazard from structural, operational characteristics (loose handrail)
Physical Hazard
High Deductible is what risk management technique?
Retention
Do not engage in the activity
Avoidance
Insurance is what risk management technique
Transfer
Giving back a portion of premiums to write business
Rebating
Incomplete comparison between policies
twisting
Resident license renewal fee
55
Lapsed license renewal fee
165
What is the fine if you did not know
$1,000 each/$10,000 in 6 months
Notify of contact information change in how many days
30 days
How long is a temp license good for
180 days
Minimum liability required for transportation of hazardous materials
$750,000
How often to consult Do Not Call list
every 31 days
How long to honor opt-out for CAN-SPAM
10 days
Factors that lead to the possibility of loss
Exposures
Insurance company domiciled in PA
Domestic Insurer
Insurance Company domiciled in another country
Alien Insurance
Loss resulting from the inability to use the property
Consequential Loss
Replacement cost - depreciation =
ACV
Added to policy to add, modify or exclude coverage
Endorsement
4 Elements needed for Negligence
Legal Duty, Breach of the duty, Proximate Cause, Actual Damage
Damages that are measurable dollars
special (economic)
Non-economic damages (pain & suffering)
General Damages
Responsible for negligent acts of others (employer/employee)
Vicarious Liability
Accident, including continuous or repeated exposure to the same condition
occurrance
Binders can be issued for
30 days
How old to be a resident producer
18 yrs old
