Property Casualty

Question 1

Both robbery and burglary can be considered what?

Answer 1

Theft

Question 2

The risk of loss may be classified as

Answer 2

Pure risk and speculative risk

Question 3

Which of the following best expresses the purpose of a stated value contract?

Answer 3

To pre establish the amount of coverage for the property items that are difficult to value.

Question 4

The reduction, decrease, or disappearance of value of the person or property. Insured in a policy by Perl insured against is known as.

Answer 4

Loss

Question 5

What is most likely to occur if it is determined by the audit that the deposit premium was too high?

Answer 5

The insured will receive a return premium

Question 6

The crime of force entry into a premises of another person or persons with felonious intense, is subscribed as? 

Answer 6

Burglary

Question 7

Peril is most easily defined as

Answer 7

The cause of the loss (Event, Fire lightning , vandalism) *The Act

Question 8

When a parent is required to pay for damages cost by their children, this is an example of the act of someone else paying for you)

Answer 8

Vicarious liability

Question 9

In property insurance, actual cash values defined as?

Answer 9

Replacement cost at the time of loss, less depreciation

Question 10

If someone owns several buildings, what type of insurance do they have if they have them at separate locations?

Answer 10

Blanket insurance . this provides eight specific amounts of coverage for each property.

Question 11

The proximate cause

Answer 11

The main reason that started the incident .

Question 12

Actual cash value

Answer 12

Actual cash value (ACB) is a valuation method which the value of property is determined using the replacement cost for property of like kind and quality, minus depreciation. The original cost is not a factor.

Question 13

Stated amount

Answer 13

Stated amount coverage the value of the insured properties determined at the time the policy is written .

Question 14

Improper insurance, what is the purpose of coinsurance clause?

Answer 14

To encourage the insured to ensure property close to its value

Question 15

What is the difference between vacancy and unoccupied

Answer 15

Vacancy refers to insured structure in which no people have been living or working and no property has been stored for the specified period of time on occupied refers to insured structure in which no people have been living or working within the required period of amount of time, but the property is still stored.

Question 16

What term describes a loss caused by continuous exposure to a condition

Answer 16

Occurance

Question 17

What is a risk

Answer 17

The opportunity of losing or taking a chance (uncertainly of loss)

Question 18

What is a hazard?

Answer 18

Conditions that increase the chance of a loss or known.

Question 19

What types of limits of liability has the limits separately stated for different coverages?

Answer 19

Split limits

Question 20

What law protects consumers from the circulation of inaccurate or absolete information

Answer 20

The fair credit reporting act

Question 21

Wagering on a sporting event is known as what type of risk ?

Answer 21

Speculative

Question 22

If a tornado destroys a property, would that be example of what?

Answer 22

Peril

Question 23

What are three types of hazards?

Answer 23

Physical, moral morale

Question 24

What determines the insurer responsibility for payments, as stated in the insurance policy?

Answer 24

Limits of liability

Question 25

What provision states, that if a policy allows for greater benefit than the financial loss and cured, the insured may be compensated only for the amount lost?

Answer 25

Indemnity

Question 26

Improper insurance, when must “insurable interest” exist?

Answer 26

At the time of loss

Question 27

The reduction, decreased, or disappearance of value of the person or property insured in a policy is known as what?

Answer 27

Loss

Question 28

A policy that covers all cost of loss, except for those specifically excluded is known as what type of policy

Answer 28

Open peril

Question 29

What is the term for the causes of loss insured against in an insurance policy?

Answer 29

Peril

Question 30

His situation in which a person can experience only a loss and no gain presents. What type of Risk?

Answer 30

Pure risk

Question 31

What is burglary?

Answer 31

A forced entry into another premises with felonies intent

Question 32

What supplement in a liability policy, put a ceiling on the payments of all claims that arise from a single accident?

Answer 32

Per occurrence

Question 33

What are the two types of compensatory damages ?

Answer 33

Special and general

Question 34

In property insurance, what is the actual cash value??

Answer 34

Replacement cost at the time of loss minus depreciation

Question 35

If a manufactured product is unsafe, what type of liability applied to the manufacture?

Answer 35

Strict liability

Question 36

What term defines an exact , direct, and uninterrupted cost of loss?

Answer 36

Proximate cost

Question 37

Under absolute liability, does an injured party need to prove negligence ?

Answer 37

No, absolutely liability exist when a condition or conduct is inherited dangerous, so proof of negligence is not required

Question 38

I was actual cash value property calculated?

Answer 38

Current replacements cost minus depreciation

Question 39

How are direct and indirect losses related?

Answer 39

Direct losses can cause indirect losses of other people’s belongings or properties.