WebCe Commercial Lines 101 CE Latest Update

WebCe Commercial Lines 101 CE Latest Update

• Actual Exam 255 Questions with 100%

Verified Correct Answers Guaranteed A+ Verified by Professor

A Condition - CORRECT ANSWER: An event, not certain to happen, which must occur

before performance under a contract becomes due

A credit modifier (less than 1.0) - CORRECT ANSWER: reduces the employers

premium

A debt modifier (greater than 1.0) - CORRECT ANSWER: Indicates higher than average losses and produces a correszponding increase in premium

A modifier of 1.0 indicates - CORRECT ANSWER: Average loss experience; produces a modified premium that equals the unmodified premium

Absolute Exclusions - CORRECT ANSWER: Apply regardless of the existence of

underlying coverage

Acceptance - CORRECT ANSWER: The assent to the offer; it must be unconditional

and communicated clearly as well

Actual Cash Value - CORRECT ANSWER: The cost to replace new today with materials of like kind and quality, less physical depreciation

Admitted Assets - CORRECT ANSWER: Assets whose value is included in the annual

statement of an insurer to the state insurance department; can readily be used to pay claims, including cash, stocks, bonds, real estate, and money market funds 1 / 3

Advantage to Direct Writers - CORRECT ANSWER: Low expense ratios

Advantage to Independent Agents - CORRECT ANSWER: Place insurance with any

one company or a combination of many insurance companies with which they do business

Advantages of CPP - CORRECT ANSWER: Fewer gaps in coverage, business insureds

pay relatively lower premiums, savings insurer expenses are passed on to the insured in the form of a package discount, named insured has the convenience of a single policy

Advantages of Federal Regulation - CORRECT ANSWER: Some states have

inadequate personnel to properly regulate, some states lack funding, greater operating efficiencies, establish a more consistent and uniform way of addressing insurer insolvencies

Advantages of Standard Policy Forms - CORRECT ANSWER: Ability to set rates using pooled loss data is enhanced, increases ability to make generalizations about coverages, reduces the need to compare insurers' policies, simplifies the claims-settling process

Advantages of State Regulation - CORRECT ANSWER: Well established, more flexible and adaptable to change, allows for experimentation, allows a decentralization of political influence

Aleatory Contract - CORRECT ANSWER: An agreement concerned with an uncertain

even that provides for unequal transfer of value between the parties (Ex. Insurance Policies)

All Risk Policy - CORRECT ANSWER: Agree to cover all causes of loss except those that are excluded 2 / 3

All Risks Policy - CORRECT ANSWER: Provides broader protection and covers any

accidental loss, subject to a host of policy exclusions

Allied Healthcare Professional Liability - CORRECT ANSWER: Covers nonphysician

health care professionals including nurses, dentists, physical therapists, technicians, and a variety of other persons providing medical services

Any Auto - CORRECT ANSWER: Any auto, whether owned, nonowned, or hired, is

considered a covered auto

Auto Dealers Policy - CORRECT ANSWER: A specialized form designed to provide

insurance to auto and trailer dealers, both franchised and nonfranchised

BAP Definition of Insured - CORRECT ANSWER: The named insured, permissive

users, and anyone liable for the conduct of an insured

BAP Elements of a Covered Loss - CORRECT ANSWER: Bodily injury or property

damage resulting from the ownership, maintenance, or use of a covered auto; bodily injury or property damage is caused by an accident; the insured is legally liable for the loss

BAP Liability Coverage - CORRECT ANSWER: Insures against legal liability arising from the ownership, operation, or use of covered autos

BAP Physical Damage Coverage - CORRECT ANSWER: Deals with the exposure of

direct and accidental loss of or damage to an insured's own vehicle

Benefits that the insurance system provide to society - CORRECT ANSWER: Stability to families and businesses, peace of mind, facilitates credit transactions, risk control, source of investment capital

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