PROPERTY AND CASUALTY BASIC INSURANCE EXAM

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PROPERTY AND CASUALTY BASIC INSURANCE EXAM

QUEEN EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -52 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: cancellation

Answer:

terminating an in force policy

Question 2: Punitive

Answer:

for punishment

Question 3: Special Damages

Answer:

medical bills and loss of wages after an accident. easily calculable because you can see a bill

Question 4: absolute liability

Answer:

obviously dangerous - swimming pools and pet tiger. You are acting dangerously

Question 5: Functional Replacement

Answer:

modern less expensive price to make repairs like using drywall instead of plaster.

Question 6: replacement

Answer:

brand-new value to place the similar/same kind or quality things at today's prices. The original price paid is not considered. Defeats indemnity but only because it has to. You cannot build a house with used wood. Original price paid NOT considered

Question 7: NNAAPP Declarations

Answer:

Name of insured Name of insurer Address (where) Amount Property Description Premium

Question 8: Specific Insurance

Answer:

A policy that covers a certain thing or it's own amount of coverage. 1 policy covers 1 item. This necklace is $5,000, this ring is $5,000 etc.

Question 9: Fire Restive

Answer:

House that is built with material that can resist burning down for up to 2 hours. Fire resistive is the best rating.

Question 10: other insurance

Answer:

a provisions in the policy that explains if there is more than one policy covering a loss, they will all need to pay a fair share of the loss to protect indemnity.

Question 11: Additional/supplementary Coverage

Answer:

is built in extra coverage to all the policies at no additional cost. automatically going to get it. in addition to.

Question 12: deductibles

Answer:

the amount of money the insured pays first before the insurer pays

Question 13: policy period

Answer:

found on declaration page. states how long a policy covers an insured. usually 6 months for car. usually 12 months for home.

Question 14: Conditions

Answer:

a part of the policy that lists the rules, duties, obligations, ways of behaving for both the insured and insurer

Question 15: additional insured

Answer:

mortgage/lien holder added via an endorsement in regards to a specific interest.

Question 16: Stated

Answer:

A policy that set a Max limit that the insurer will pay up to if the item suffers a covered peril. pay up to a certain value and this is max. MAXIMUM. Stating the MAX Value

Question 17: Loss Valuation

Answer:

a factor in determining the PREMIUM. Evaluation of loss. whats the value of the less = what will the insurer pay for the loss up to the limits.

Question 18: Policy structure

Answer:

parts of a policy. table of contents

Question 19: Policy territory

Answer:

states where the coverage is active (US, Canada, US territories). worldwide.

Question 20: Named Peril

Answer:

policy that will only cover perils that are named/listed on the the policy.

Question 21: nonrenewal

Answer:

termination of a policy at expiration

Question 22: strict liability

Answer:

about PRODUCTS. I bought something from you, the product causes damage to the person. Tire's. fault doesn't matter.

Question 23: First named insured

Answer:

Only refers to commercial policy, the named insured is the designated person who manages the policy for the business.

Question 24: Property Damage

Answer:

Direct damage to PROPERTY. Mine or your property

Question 25: certificate of insurance

Answer:

a document that states the insured has coverage.

Question 26: policy limits

Answer:

the most amount of money the insured can collect under the policy. max that I will collect

Question 27: Unoccupany

Answer:

a house that has stuff, but NO people, however the people do intend to come back like going on a vacation