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PDF Download SC P&C INSURANCE EXAM STUDY GUIDE Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers
-Format: Multiple-choice / Flashcard
Question 1: Insured
Answer:
An individual who is covered by an insurer
Question 2: FAIR Plan
Answer:
Fair Access to Insurance Requirements plan is a state-run program that makes insurance obtainable to those in high risk areas who have been unable to acquire insurance through other channels.
Question 3: Avoidance
Answer:
A method of dealing with risk by deliberately keeping away from it (e.g. if a person wanted to avoid the risk of being killed in an airplane crash, he/she might choose never to fly in a plane).
Question 4: Fraternal Benefit Society
Answer:
A life or health insurance company formed to provide insurance for members of an affiliated lodge, religious, or fraternal organization with a representative form of government.
Question 5: Flood
Answer:
An unusual accumulation of water that overflows from rivers, lakes and the ocean onto land that is not normally covered by water.
Question 6: Implied Authority
Answer:
Authority that is not expressed or written into the contract, but which the agent is assumed to have in order to transact the business of insurance for the principal.
Question 7: Builder's Risk Coverage Form
Answer:
This coverage form provides coverage for buildings that are under construction. Can also be used to cover a building while additions and alterations are being made to the structure.
Question 8: Insurable Interest
Answer:
any interest an insured may have in property that is the subject of insurance so that damage or destruction of that property would cause the insured financial loss
Question 9: First Named Insured
Answer:
the individual whose name appears first on the policy's declaration
Question 10: Blanket Bond
Answer:
a type of bond that covers losses caused by dishonest employees
Question 11: Abandonment
Answer:
the abdication of insured property into the hands of another, or into the possession of no one in particular
Question 12: Express Authority
Answer:
the authority granted to an agent by means of the agent's written contract
Question 13: Arbitration
Answer:
A process, agreed to by parties to a dispute in lieu of going to court, by which a neutral person or body makes a binding decision
Question 14: Alien Insurer
Answer:
an insurance company that is incorporated outside the U.S.
Question 15: Defamation
Answer:
An unfair trade practice in which one agent or insurer makes an injurious statement about another with the intent of harming the person's or company's reputation.
Question 16: Excess Policy
Answer:
a policy that only pays for loss after the primary policy has paid its limit
Question 17: Indemnity
Answer:
compensation to the insured that restores them to the same financial position that they enjoyed prior to the loss
Question 18: Exclusive or Captive Agent
Answer:
an agent who only represents one company and is compensated by commisions
Question 19: Admitted Insurer
Answer:
An insurer to which a state insurance department has granted a license to do business within that state.
Question 20: Coercion
Answer:
An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance.
Question 21: Domestic Insurer
Answer:
An insurance company that conducts business in the state of incorporation.
Question 22: Deposit Premium Audit
Answer:
A condition that allows the insurer to audit the insured's books or records at the end of the policy term to make sure adequate premium has been collected for the exposure.
Question 23: Bailee
Answer:
One who holds the personal property of another for a specific purpose.
Question 24: Beneficiary
Answer:
the one who recieves the proceeds from an insurance policy
Question 25: Direct Losses
Answer:
Physical damage to buildings and/or personal property as a result of direct consequence of a particular peril.
Question 26: Conditions
Answer:
the section of the policy that indicates the general rules or procedures that the insurer and insured agree to follow under the terms of the policy
Question 27: Comprehensive Coverage
Answer:
The portion of an insurance policy that protects an individual against automobile damages or losses other than collisions. It includes damages and losses due to fire, vandalism, or theft.
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