INDIANA PROPERTY AND CASUALTY INSURANCE EXAM

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INDIANA PROPERTY AND CASUALTY INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Arbitration

Answer:

settling a dispute by agreeing to accept the decision of an impartial outsider

Question 2: Examination of Your Books and Records

Answer:

the company may examine and audit the insured's books any time during the policy coverage and for up to three years after coverage expires.

Question 3: Actual Cash Value

Answer:

replacement cost minus depreciation

Question 4: Medical Malpractice

Answer:

designed to protect people who work in the health care industry such as doctors, surgeons, dentists, nurses, hospitals, opticians, pharmacists, etc.

Question 5: Particular Risks

Answer:

Particular risks occur when there is some sort of loss to the individual specifically.

Question 6: Personal Effects Floater (PEF)

Answer:

used to ensure the insured's personal property that is taken with on trips and vacations) and are insured everywhere in the world except while at the home of the insured.

Question 7: Fidelity Bonds

Answer:

offer protection against the dishonest and fraudulent acts of employees; therefore, they guarantee honesty.

Question 8: Comprehensive Personal Liability (CPL)

Answer:

coverage which pays for bodily injury and property damaged of others caused by the negligence of an insured which is unrelated to business activities of negligence arising out of use by the insured of an automobile.

Question 9: Personal lines contracts

Answer:

offer protection against property loss owned by individuals for real and personal property not used for business or commercial purposes.

Question 10: Combined Single Limit

Answer:

Combined Single Limit is a total policy limit which is expressed in the declarations as a single dollar amount that will be paid for both bodily injury (including death) and property damage, regardless of the number of victims, in a single accident.

Question 11: Commercial Blanket Bond

Answer:

the bond limit is the maximum amount that will be paid for a single loss regardless of the number or employees involved.

Question 12: Indirect, or Consequential, loss

Answer:

Indirect, or Consequential, loss is damage which results from a covered peril, but the loss itself was not directly caused by that peril. These are losses which result from the actual physical loss itself and are generally only covered if an appropriate endorsement was added to the policy for such loss.

Question 13: Personal Injury (P.I)

Answer:

injury other than bodily injury (it is nonphysical injury) or property damage arising

Question 14: Permanent Total Disability

Answer:

the employee can never work again making this the most severe disability and awarding the highest compensation.

Question 15: Depreciation

Answer:

A decrease or loss in value

Question 16: Pure Risk

Answer:

a risk that presents the chance of loss but no opportunity for gain

Question 17: Bill of Laden

Answer:

a shipping contract that contains all shipping information between the consignor (person sending the goods) of the goods, carrier and consignee.

Question 18: Coverage D Uninsured Boaters

Answer:

an insured is paid damages upon bodily injury caused by an uninsured operator or a watercraft.

Question 19: Inside the Premise- Robbery or Safe Burglary of Other Property

Answer:

the insured or any of the insured's partners or members or any employee while having care and custody of property inside the premises, excluding any person while acting as a watchperson or janitor.

Question 20: Fair Rental Value

Answer:

pays the fair rental value to any part of the premises rented to another minus any expenses that do not continue while the premises are not fit to live in.

Question 21: Exclusions

Answer:

Exclusions limit the scope of coverage in an insurance contract by specifically listing any causes of loss for which coverage will not exist

Question 22: Aggregate Limit

Answer:

The aggregate limit is the limit the policy will pay for all covered loss in a policy period regardless of the total number of claims brought by any number of claimants. The aggregate limit resets to the original amount on the anniversary of the policy.

Question 23: Farm Property Coverage Form

Answer:

is used to ensure farms on a commercial basis that are owned and occupied by the insured.

Question 24: Mortgage Clause

Answer:

the mortgagee (lender) will be paid under Coverage A and Coverage B as their interest appears. If required to do so and with notice by the company, the Mortgagee has 60 days to file a proof of loss.

Question 25: Contributory negligence

Answer:

the person who is pursuing a claim could not hold liable the other party if it was ruled that the claimant, through a failure, omission, or negligence of their own, had partly contributed to their own injury, in any degree, no matter how small.

Question 26: Conditions

Answer:

The conditions of a policy set forth and describes the rights and duties of both the insurance company and the insured.

Question 27: Fundamental Risks

Answer:

Fundamental risks are generally large scale, impersonal events that are caused by groups and/or natural occurrences and have great effect on groups of people, sometimes even the entire populace.Common examples of fundamental risks are unemployment, war, political instability, and natural disasters such as floods, earthquakes, tidal waves, and hurricanes.