FREE INSURANCE AND STUDY GAMES ABOUT PROPERTY

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FREE INSURANCE AND STUDY GAMES ABOUT PROPERTY

& CASUALTY EXAM QUESTIONS Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -41 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Six P's

Answer:

Policy number, Parties (insurer, insured, mortagee or lien holder), Property description and location, Policy term (effective and expiration dates), Policy limits and deductibles, premium

Question 2: Personal Lines

Answer:

Insurance for families and individuals:AUTO HOMEOWNERS BOATS RECREATIONAL VEHICLES

Question 3: Law of large numbers L.L.N.

Answer:

As the number of homogenous (similar) loss exposures increases, the more accurate claims can be predicted from the group

Question 4: Indirect Loss

Answer:

Loss that happens but due to the use of the property. AKA consequential

Question 5: Proximate Cause

Answer:

first cause in an unbroken chain of events

Question 6: After a loss

Answer:

insured must provide insurer with prompt notification, cooperation with the insurer, submission of proof or sworn statement (within 91 days in TX), if required.

Question 7: Morale Hazard

Answer:

Attitude of carelessness

Question 8: After a loss (property policies)

Answer:

Property policies require insured to protect property from further damage and provide an inventory of damaged property

Question 9: Insurable Interest (Must be present for insurance to pay)

Answer:

financial risk of loss.

Question 10: Physical Hazard

Answer:

Visisble characteristic

Question 11: CALC

Answer:

competent parties, Agreement, Legal purpose, consideration

Question 12: Representations

Answer:

information believed to be true, ex: answers by the insured

Question 13: Insuring agreement

Answer:

contains the insurer's promise to pay, includes the covered perils of a policy. Named, Open, and a combinatio of named and open PERILS

Question 14: Hazard

Answer:

not causes of loss but things that increase the chance of a peril

Question 15: Perils

Answer:

common causes of loss such as fire, wind, lightning, and so on.

Question 16: Commercial Lines

Answer:

Insurance for businesses: COMMERCIAL AUTO COMMERCIAL PROPERTY COMMERCIAL

PROPERTY COMMERCIAL LIABILITY WORKER'S COMPENSATION

Question 17: Mortgage Rights

Answer:

Mortgagee (Lender): pay the premium/file a proof of loss, receive claim payment up to the insurable interest

Question 18: Opene peril

Answer:

all risk: except the specifically excluded by the policy

Question 19: Moral Hazard

Answer:

Dishonest tendencies

Question 20: Binder Details

Answer:

Usually issued by the agent, may be writeen or verbal, good for up to 30 days in Texas, can be cancelled by insurer, does not guarantee a policy will be issued, ceases automatically if a policy is issued/declined

Question 21: Binder

Answer:

Temporary contract of insurance pending issue of the policy

Question 22: Risk

Answer:

Uncertainty of financial loss

Question 23: Named peril

Answer:

specified peril that is listed on the policy

Question 24: Direct loss

Answer:

immediate physical damage to property

Question 25: Deductable

Answer:

aka: retention or retention limit. requires the insured to pay a specific amount or percentage of the loss.Insurer pays in excess of deductible, effect of adding deductible; reduces premium, reduces frequency of claims

Question 26: Casualty Insurance

Answer:

covers insured from non-property losses. AKA as legal liability to others

Question 27: INSURER Subrogation rights

Answer:

If insurance company pays for the damages caused by someone else, then the insurer now has the right to go after the responsible party. the deductible is returned to the insured party if the insurer is able to collect from the at-fault party

Question 28: Limits

Answer:

of liability: max amount of coverage agreed to be paid per loss

aggregates: max amount of total of all claims paid per policy period (usually found only on commercial