prop and casualty basics

Question 1

Insurance adjuster adjusts losses, not an underwriter

Answer 1

a

Question 2

Which part of an insurance contract sets forth the rules of conduct, duties and obligations of the insured and the insurer?

Answer 2

Conditions

Question 3

Policies that agree to pay a stated amount to the insured in the event of a claim, regardless of the actual cash value of the property are known as

Answer 3

valued policies

Question 4

Furniture that is destroyed when a building burns down is an example of what kind of loss?

Answer 4

Direct

Question 5

Most Property and Casualty policies are written for what period of time?

Answer 5

One year

Question 6

What is the name of the area of tort law that provides remedies for wrongful acts other than crimes and breach of contract?

Answer 6

Negligence

Question 7

A policy that combines the maximum limit available for BI and/or PD for any one occurrence is a

Answer 7

single

Question 8

Many CGL policies are written with an Aggregate policy limit, which is:

Answer 8

the most the insurer will pay for all claims during the policy period

Question 9

The purpose of Coinsurance on Fire insurance is

Answer 9

to require the client to carry proper coverage

Question 10

When you are found to be responsible for the negligent acts of others, it is known as

Answer 10

vicarious liability

Question 11

What part of an insurance contract specifies the perils insured against

Answer 11

insuring agreement

Question 12

What part of an insurance contract describes the perils that are not covered in an all-risk policy?

Answer 12

Exclusions

Question 13

A hostile fire is one that escapes from its intended area.

Answer 13

a

Question 14

The penalty for failure to satisfy the 80% Coinsurance requirement on a Property policy is

Answer 14

only a portion of a partial loss will be paid

Question 15

All of the following must be present in order to prove negligence EXCEPT

Answer 15

intervening cause

Question 16

States that have adopted limited forms of no fault auto insurance coverage are relying on what concept?

Answer 16

Assumption of the risk

Question 17

A policy modification that may be added to an insurance policy for an extra premium charge to the insured is called a(n

Answer 17

endorsement

Question 18

Data regarding the premium, limits, name and address of the insured and the policy period are found in what part of the contract

Answer 18

declarations

Question 19

A policy that only pays after another policy has paid is called

Answer 19

excess

Question 20

A doctrine of law that states that you cannot recover damages from the other party if you are found to be partly at fault is called

Answer 20

contributory negligence

Question 21

Which of the following is NOT considered a Consequential Loss?

Answer 21

Damage to personal property

Question 22

All of the following are permitted defenses in a negligence lawsuit EXCEPT

Answer 22

strict liability (not a defense in a negligence lawsuit)

Question 23

When a direct chain of events resulting from a negligent act causes injury or damage, that act is considered to be

Answer 23

the proximate cause

Question 24

All of the following are examples of Strict (or Absolute) Liability EXCEPT

Answer 24

driving your car