Terms to know

Question 1

an unplanned event resulting in injury or damage, not under the control of the insured

Answer 1

accident

Question 2

financial interest in the life o another person or ina piece of property

Answer 2

insurable interest

Question 3

national entity that creates standardized property and casualty insurance policies

Answer 3

ISO (Insurance Services Office

Question 4

responsibility under the law

Answer 4

liability

Question 5

the individual whose name appears on the policy’s declaration

Answer 5

named insured

Question 6

a cause of loss specifically listed in and covered by the policy

Answer 6

named peril

Question 7

failure to use the care that a reasonable and prudent person would use under the same circumstances

Answer 7

negligence

Question 8

loss caused by continuous exposure to hazardous conditions

Answer 8

occurence

Question 9

any risk of loss that is not specifically excluded in the policy

Answer 9

open peril

Question 10

an act or event that is the immediate cause of loss (one cause of loss sets off the other causes of loss)

Answer 10

proximate cause

Question 11

amount of premium charged for a specified amount of coverage (unit of cost)

Answer 11

rate

Question 12

risk selection and classification

Answer 12

underwriting