P&C Insurance

Question 1

Policy Administration System (PAS)

Answer 1

A web-based underwriting and policy administration system
designed for personal and commercial line carriers in the
property and casualty insurance (P&C) industry

Question 2

Property and Casualty

Insurance

Answer 2

Property insurance and casualty insurance are types of
coverage that help protect the stuff you own — your home
or car, for example — and also provide liability coverage to
help protect you if you’re found legally responsible for an
accident that causes injuries to another person or damage
to another person’s belongings

Question 3

Property insurance

Answer 3

Insurance designed to cover property losses—the risks that
we will suffer financial losses because things we own are
damaged or destroyed.

Question 4

Casualty Insurance

Answer 4

Encompasses a wide variety of basically unrelated
insurance products. One of the most important types of
casualty insurance is liability insurance.

Question 5

Liability Losses

Answer 5

Losses that occur as a result of the insured’s interactions

with others or their property.

Question 6

Personal Lines

Answer 6

Encompasses coverages for individuals—auto and

homeowners insurance.

Question 7

Commercial Lines

Answer 7

Encompasses the many kinds of insurance products

designed for businesses.

Question 8

Underwriting or

Insurance Underwriting

Answer 8

The process of evaluating the risk of insuring a home, car,
driver, or business to determine if it’s profitable for the
insurance company to take the chance on providing
insurance.

Question 9

Insurance underwriters

Answer 9

An professional who chooses who and what the insurance

company will insure based on risk assessment.

Question 10

Binder

Answer 10

A legal document that serves as a temporary insurance

policy.

Question 11

Policy

Answer 11

A contract between the carrier and the insured in which the
carrier promises to cover the insured for specific types of
losses.

Question 12

Coverage

Answer 12

Protection from a specific risk and is always attached to a
coverable such as a vehicle or a building. Coverages are
always attached to a coverable.

Question 13

Account

Answer 13

A single person or organization which has or may have one
or more policies – an account could have many, one, or zero
policies. An account is really a collection of information, and
includes the account holder, the policies (each of which has
a policy holder or holders who may or may not be the same
as the account holder),

Question 14

Contract

Answer 14

A person or organization which includes but is not limited to
the Named Insured(s)

Question 15

Location (as it pertains

to a policy)

Answer 15

A physical location which may be referenced on a policy.
Both Contacts and Locations can be: created on account
and reused on a policy or simply created on policy.

Question 16

Coverable

Answer 16

An exposure to risk that can be protected by the policy.
Coverages are attached only to coverables. Within
PolicyCenter, Guidewire makes the policy line a coverable to
represent the named insureds. A policy line is the type of
insurance that the insured is buying such as personal auto
or business owners insurance and so on.

Question 17

Property coverages

Answer 17

Cover tangible assets belonging to the insured, such as a

vehicle, home, or the body of the insured.

Question 18

Liability coverages

Answer 18

Cover the liability of the insured when damage is done to a

third party.

Question 19

PolicyCenter Policy

“Tools”

Answer 19

Tools that are used to complete the work of policy

management.

Question 20

Transaction

Answer 20

A process that creates or changes the nature of a policy.

Question 21

Policy tools contact

Answer 21

A person whom the carrier may need to contact but who is
not part of the policy contract (such as a billing manager for
a company which has a business owner’s policy).

Question 22

Note

Answer 22

A record of a user of PolicyCenter thinking or strategy when

working on a policy.

Question 23

An underwriting issue.

Answer 23

A note of an issue which is relevant to the creation or
renewal of a policy and may cause the carrier to deny the
policy or raise the premium.

Question 24

Claim

Answer 24

An event in which a potentially covered loss occurred.