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EXAM PREP > FROM CLASS > Flashcards

FROM CLASS Flashcards

1
Q

pure risk is

A

insurable risk

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2
Q

risk retention group corp or llc

A

spreads all or most liability

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3
Q

purchasing group

A

purchases for group

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4
Q

fidciary

A

finances / handles money for insurers

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5
Q

loss ratio

A

example, a firm pays $100,000 of premium for workers compensation insurance in a given year, and its insurer pays and reserves $50,000 in claims, the firm’s loss ratio is 50 percent ($50,000 incurred losses/$100,000 earned premiums).

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6
Q

manual rating is also known as

A

class rating

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7
Q

loss exposure is when one may be affected by a

A

peril

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8
Q

material statement

A

disclosure or lack of disclosure would change the insurer’s decision to issue a policy for the same premium

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9
Q

producer/agent exceeds the authority expressed in his/her contract, and the insurer does nothing to counter the public impression that such authority exists (renewed after renewal)

A

apparent authority

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10
Q

authority explicitly written in agency contract

A

express

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11
Q

authority that the public assumes a producer has based on his/her actions

A

implied

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12
Q

insured is ___, insurer is ___

A

first, second

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13
Q

Insuring agreement is the

A

PROMISE

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14
Q

ACV

A

today’s replacement minus depreciation

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15
Q

an accident is a type of

A

occurrence

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16
Q

subrogation

A

insurers right to recover payment from third party

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17
Q

subrogate

A

third party pays

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18
Q

policy premium is fully earned at

A

the end or expiration date

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19
Q

pure no-fault

A

completely abolishes blame

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20
Q

assumption of risk is not an

A

element of risk

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21
Q

actual cause of loss

A

proximate

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22
Q

statuary defense against negligence is

A

comparitive

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23
Q

coverage D limit in DP policy is __% of coverage A

A

20%

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24
Q

coverage a is settled on a __ on DP2 and DP3

A

Replacement Cost

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25
Q

coverage is settled on a __ for DP1

A

Actual Cash Value

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26
Q

__% of Coverage C will pay for alterations, additions, and improvements

A

10%

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27
Q

dwelling policies do not have __, must be added by endorsement

A

liability

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28
Q

HO-3 and HO-8 have what in common

A

personal liability and medical payments

29
Q

HO-3 is on a what basis

A

ACV

30
Q

HO-5 is on a what basis

A

RCV

31
Q

HO-2 has

A

property

32
Q

HO-4 has

A

contents

33
Q

HO-3 differs with HO5 in coverage

A

C

34
Q

other structures of what % in coverage B in DP and HO

A

10%

35
Q

OTC (other than collision) covers

A

earthquake

36
Q

good driver discount is at least

A

20%

37
Q

how many days notice for non renewal

A

30

38
Q

CAARP is

A

15/30/5

39
Q

Low Cost auto is

A

10/20/3

40
Q

duties of insured with uninsured motorist is to

A

notify the police

41
Q

FAIR plan relates to

A

fire ion brush area

42
Q

FAIR plan is not available for

A

auto or farm land

43
Q

coin collections covered under

A

personal article floater

44
Q

Boat Owners does not cover

A

personal injury

45
Q

floor covers

A

structures and contents

46
Q

property removed to protect it from floor is covered for

A

45 days

47
Q

SIR is

A

self insured retention

48
Q

SIR is not required for

A

umbrella policies

49
Q

Builders risk coinsurance must be at

A

100%

50
Q

coinsurance is located on what page

A

the declaration page

51
Q

Building and personal property does not cover

A

foundation

52
Q

building and personal property are paid on what basis

A

Actual Cash Value

53
Q

Commercial general Liability covers what only

A

customers

54
Q

who is considered an insured

A

anyone on the declaration page

55
Q

what liability can be endorsed onto CGL or its own policy

A

Pollution

56
Q

what is not an insured contract

A

employment

57
Q

broadest coverage for crime is

A

theft

58
Q

loss sustained form is used for

A

occurrence

59
Q

discovery form is used for

A

claims made

60
Q

__ and __ is not a crime coverage form

A

premises and operations

61
Q

Inland marine almost always provides what peril basis

A

OPEN peril basis

62
Q

freight insurance covers

A

freight and import duties

63
Q

what type of insurance coverage is used for strict liability

A

railroad protection

64
Q

which of the following is excluded as money in a crime policy

A

checks

65
Q

what type of hazard is a deliberate creation of loss by an insured in order to collect insurance payment or benefits? (gambling)

A

moral hazard

66
Q

NAIC

A

National Association of Insurance Commissioner consists of all state and territorial insurance commissioner regulations

67
Q

stock insurance

A

owned by stockholders

68
Q

mutual insurance company

A

owned by policy holders

69
Q

demutualization

A

mutual becomes stock

EXAM PREP (2 decks)

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