PROPERTY AND LIABILITY INSURANCE

Question 1

ACTUAL CASH VALUE

Answer 1

THE DEPRECIATED VALUE OF PERSONAL PROPERTY

Question 2

ASSUMPTION OF RISK

Answer 2

THE INJURED PARTY FULLY UNDERSTOOD AND RECOGNIZED THE DANGERS THAT WERE INVOLVED IN AN ACTIVITY AND VOLUNTARILY CHOSE TO PROCEED

Question 3

BASIC PERILS COVERAGE

Answer 3

PROTECTS THE HOMEOWNER FROM LOSSES ASSOCIATED WITH SPECIFICALLY NAMED PERILS

Question 4

BODILY INJURY

Answer 4

OCCURS WHEN AN INSURED DRIVER CAUSES BODILY HARM TO A THIRD PARTY AND THE INSURED DRIVER IS DEEMED RESPONSIBLE FOR THE INJURIES

Question 5

BROAD PERILS COVERAGE

Answer 5

PROVIDES PROTECTION FOR THE PERILS COVERED IN BASIC COVERAGE, PLUS ADDITIONAL PROTECTION FOR NAMED PERILS NOT COVERED UNDER BASIC COVERAGE

Question 6

COINSURANCE

Answer 6

THE PERCENTAGE OF FINANCIAL RESPONSIBILITY THE INSUREDAND THE INSURER MUST UPHOLD IN ORDER TO ACHIEVE EQUITY IN RATING. COINSURANCE IN PROPERTY INSURANCE ENCOURAGES INSUREDS TO COVER THEIR PROPERTY TO AT LEAST A STATED PERCENTAGE OF THE PROPERTYS VALUE, OR ELSE SUFFER A FINANCIAL PENALTY

Question 7

COLLATERAL SOURCE RULE

Answer 7

HOLDS THAT DAMAGES ASSESSED AGAINST A NEGLIGENT PARTY SHOULD NOT BE REDUCED SIMPLY BECAUSE THE INJURED PARTY HAS OTHER SOURCES OF RECOVERY AVAILABLE, SUCH AS INSURANCE OR EMPLOYEE BENEFITS (HEALTH OR DISABILITY INSURANCE)

Question 8

COLLISION

Answer 8

AUTO INSURANCE COVERAGE THAT PROTECTS THE INSURED AGAINST UPSET AND COLLISION DAMAGES, SUCH AS THOSE SUSTAINED IN AN ACCIDENT INVOLVING OTHER VEHICLES, OR THOSE SUSTAINED WHEN THE AUTO RUNS OFF THE ROAD AND INTO A LAKE

Question 9

COMBINED SINGLE LIMIT POLICY

Answer 9

AN AUTO INSURANCE POLICY THAT HAS A FIXED AMOUNT OF COVERAGE THAT THE INSURANCE COMPANY PAYS, WHETHER THE LOSS IS ATTRIBUTABLE TO BODILY INJURY OR PROPERTY DAMAGE

Question 10

COMPARATIVE NEGLIGENCE

Answer 10

THE AMOUNT OF DAMAGE IS ADJUSTED TO REFLECT THE INJURED PARTYS PROPORTION OF CONTRIBUTION TO THE CAUSE OF INJURY

Question 11

COMPREHENSIVE (OR OTHER THAN COLLISION)

Answer 11

AUTO INSURANCE COVERAGE THAT PROTECTS THE INSUREDS AUTO AGAINST PERILS OUT OF THE INSUREDS CONTROL, SUCH AS MISSLES OR FALLING OBJECTS, FIRE, THEFT, EARTHQUAKE, HAIL, FLOOD, AND VANDALISM

Question 12

CONTRIBUTORY NEGLIGENCE

Answer 12

NEGLIGENCE ON THE PART OF THE INJURED PARTY THAT CONTRIBUTES TO THE HARM AND, THEREFORE, REQUIRES THE INJURED TO BEAR SOME RESPONSIBILITY FOR THE INJURY

Question 13

DWELLING

Answer 13

RESIDENTIAL STRUCTURE COVERED UNDER A HOMEOWNERS INSURANCE POLICY

Question 14

ENDORSEMENT

Answer 14

ATTACHMENT OR ADDITION TO AN EXISTING INSURANCE POLICY THAT CHANGES THE ORIGINAL TERMS

Question 15

HOMEOWNERS INSURANCE

Answer 15

A PACKAGE INSURANCE POLICY THAT PROVIDES BOTH PROPERTY AND LIABILITY COVERAGE FOR THE INSUREDS DWELLING, OTHER STRUCTURES, PERSONAL PROPERTY, AND LOSS OF USE

Question 16

INTENTIONAL INTERFERENCE

Answer 16

INTENTIONAL ACT COMMITTED AGAINST ANOTHER THAT CAUSES INJURY

Question 17

LAST CLEAR CHANCE RULE

Answer 17

THIS RULE STATES THAT A CLAIMANT WHO IS ENDANGERED BY HIS OWN NEGLIGENCE MAY RECOVER IF THE DEFENDANT HAS A “LAST CLEAR CHANCE” TO AVOID THE ACCIDENT AND FAILED TO DO SO

Question 18

LIABILITY COVERAGE

Answer 18

COVERS BODILY INJURY OR PROPERTY DAMAGE TO OTHERS FOR WHICH THE INSURED DRIVER IS DEEMED TO BE RESPONSIBLE

Question 19

LIBEL

Answer 19

A WRITTEN STATEMENT THAT CAUSES HARM TO ANOTHER

Question 20

LOSS OF USE

Answer 20

UNDER HOMEOWNERS INSURANCE COVERAGE, LOSS OF USE IS A COMBINATION OF ADDITIONAL LIVING EXPENSES AND LOSS OF RENTAL INCOME

Question 21

MEDICAL PAYMENTS

Answer 21

A NO-FAULT, FIRST-PARTY INSURANCE COVERAGE DESIGNED TO PAY FOR BODILY INJURIES SUSTAINED IN AN AUTO ACCIDENT

Question 22

NEGLIGENCE

Answer 22

HARM CAUSED BY FAILURE TO USE REASONABLE CARE

Question 23

OPEN PERILS POLICY

Answer 23

ALL-RISK COVERAGE FOR PERSONAL PROPERTY THAT PROVIDES FOR A MUCH BROADER AND MORE COMPREHENSIVE PROTECTION PROGRAM THAN NAMED-PERILS COVERAGE

Question 24

OTHER STRUCTURES

Answer 24

SMALL DETACHED STRUCTURES ON THE INSUREDS PROPERTY NOT ATTACHED TO THE MAIN HOUSE, SUCH AS DETACHED GARAGES, GREENHOUSES, OR STORAGE BUILDINGS

Question 25

PERSONAL AUTOMOBILE POLICY

Answer 25

INSURANCE POLICY THAT COVERS LIABILITY FOR INJURIES AND DAMAGES TO PERSONS INSIDE AND OUTSIDE THE VEHICLE AND COVERS THE COST TO REPAIR/REPLACE A DAMAGED OR STOLEN VEHICLE

Question 26

PERSONAL LIABILITY UMBRELLA POLICY (PLUP)

Answer 26

COVERAGE DESIGNED TO PROVIDE A CATASTROPHIC LAYER OF LIABILITY COVERAGE ON TOP OF THE INDIVIDUALS HOMEOWNERS AND AUTOMOBILE INSURANCE POLICIES

Question 27

PERSONAL PROPERTY

Answer 27

VALUABLE ITEMS OWNED BY THE INSURED THAT ARE COVERED UNDER HOMEOWNERS INSURANCE

Question 28

REPLACEMENT COST

Answer 28

THE AMOUNT NECESSARY TO PURCHASE, REPAIR, OR REPLACE THE DWELLING WITH MATERIALS OF THE SAME OR SIMILAR QUALITY AT CURRENT PRICES

Question 29

RES ISPA LOQUITUR

Answer 29

A DOCTRINE OF THE LAW OF NEGLIGENCE THAT IS CONCERENED WITH THE CIRCUMSTANCES AND THE TYPES OF ACCIDENTTS, WHICH AFFORDS RESONABLE EVIDENCE IF A SPECIFIC EXPLANATION OF NEGLIGENCE IS NOT AVAILABLE

Question 30

SCHEDULE

Answer 30

ATTACHMENT OR ADDITION TO AN EXISTING INSURANCE POLICY THAT LISTS INDIVIDUAL ITEMS

Question 31

SCHEDULED PERSONAL PROPERTY ENDORSEMENT

Answer 31

AN ENDORSEMENT TO A HOMEOWNER POLICY THAT COVERS SPECIFIED ITEMS OF PERSONAL PROPERTY AT AN AGREED-UPON VALUE IN EXCESS OF THE STANDARD COVERAGE LIMITS FOR THE TYPE OF PROPERTY

Question 32

SLANDER

Answer 32

VERBAL STATEMENT THAT CAUSES HARM TO ANOTHER

Question 33

SPLIT LIMIT POLICY

Answer 33

AN AUTO INSURANCE POLICY WITH THREE SEPERATE LIABILITY COVERAGE LIMITS COVERING BODILY INJURY (PER PERSON AND PER OCCURRENCE) AND PROPERTY DAMAGE

Question 34

STRICT AND ABSOLUTE LIABILITY

Answer 34

LIABILITY RESULTING FROM LAW. STRICT LIABILITY ALLOWS FOR DEFENSE, ABSOLUTE LIABILITY DOES NOT

Question 35

UNINSURED / UNDERINSURED MOTORIST

Answer 35

A MOTORIST WITHOUT LIABILITY COVERAGE OR WHOSE INSURER CAN/WILL NOT PAY CLAIM, SUCH AS A HIT-AND-RUN DRIVER, OR MOTORIST WITH INSUFFICIENT LIABILITY COVERAGE ACCORDING TO STATE LAW

Question 36

VICARIOUS LIABILITY

Answer 36

ONE PERSON MAY BECOME LEGALLY LIABLE FOR THE TORTS OF ANOTHER (E.G., PARENT/CHILD, EMPLOYER WHOSE EMPLOYEE IS ACTING IN THE SCOPE OF EMPLOYMENT