Property and Casualty Basics

Question 1

Loss Valuation

Answer 1

A factor in determining the premium

Question 2

Actual Cash Value

Answer 2

The used value to replace things; calculated by knowing Replacement value, then subtracting (-) wear + tear

Question 3

Functional Replacement vs Replacement

Answer 3

Replacement: The brand new price
Functional Replacement: The modern, less expensive price to make repairs like using drywall

Question 4

Agreed

Answer 4

The fair valuation of item; used for non fluctuation priced items

Question 5

Stated

Answer 5

A Policy that sets a minimum limit $ that the wil pay up to if the item sufers a covered peril

Question 6

Policy Structure

Answer 6

Declarations
Definitions
Insuring Agrement/Clause
Additional/Supplementary
Conditions
Exclusions
Endorsements
Certificate of Insurance

Question 7

Common Policy provision

Answer 7

Insured
First Named Insured
Named Insured
Additional Insured
Policy Period
Policy Territory
Policy Limits
Cancellation
Non-Renewable
Deductibles
Coinsurance
Other Insurance
Vacancy
Unnocupancy

Question 8

Binder

Answer 8

A temporary agreement for temporary coverage; expires when the policy is issued

Question 9

Elements of a contract

Answer 9

Agreement — offer and acceptance;
Consideration;
Competent parties; and
Legal purpose.

Question 10

Fraud

Answer 10

is an intentional material representation

Question 11

Loss

Answer 11

The reduction, decrease, or disappearance of value of the person or property insured in a policy by a peril insured against.