Property and Casualty Insurance Test Notes and Answers, Exams of Nursing

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Property and Casualty Insurance Test 95Question Notes and Answers all answers 100%correctly verified latest update 2024 RATED A+ What is a peril? - CORRECT ANSWERS A Peril is a cause of loss What is a hazard? - CORRECT ANSWERS Something that increases the chance of a loss What is the difference between a Moral hazard and a Morale Hazard? - CORRECT ANSWERS Moral Hazard - dishonesty, against the law Morale Hazard - carelessness What is the method of handling risk that involves a deductible? - CORRECT ANSWERS Retention (loss or portion of loss) If a fire causes damage to a building, what is the fire considered? - CORRECT ANSWERS A Peril What are the elements of an insurable risk? - CORRECT ANSWERS CANHAM Calculable, Affordable, Non-Catastrophic, Homogeneous, Accidental, Measurable If an insurance company is housed in Tennessee, what type of insurer are they considered? - CORRECT ANSWERS Domestic An insurance company incorporated in Wisconsin and conducting business in Minnesota is know as what type of insurer? - CORRECT ANSWERS Foreign What is it meant by "Express Authority"? - CORRECT ANSWERS Authorities are written in agent contract What is a term that is typically used to describe an Insurance Agent? - CORRECT ANSWERS Fiduciary - a person in a position of financial trust Property and Casualty Insurance Test 95Question Notes and Answers all answers 100%correctly verified latest update 2024 RATED A+ What is a contract or device for transferring risk from a persons, business, or organization to an insurance company? - CORRECT ANSWERS Insurance What is Reinsurance? - CORRECT ANSWERS When insurance companies purchase insurance to cover their own exposures to loss What is a fiduciary? - CORRECT ANSWERS A person in a position of financial trust What is it meant by a contract of adhesion? - CORRECT ANSWERS Policy written by the insurer with the insured having no input What part of the insurance policy shows the premium payment? - CORRECT ANSWERS Declarations page What are the duties of the insured after a loss? - CORRECT ANSWERS Notice to insurer, protect property from further damage, Proof of loss, property available for inspection, examination under oath if needed, cooperate with insurer What is the FCRA? - CORRECT ANSWERS Fair Credit Reporting Act - If the insurer uses credit, must inform insured What are the parts to an insurance contract? - CORRECT ANSWERS Declarations, Conditions, Insuring Agreements, and Exclusions When an insured decides to cancel an insurance policy before the expiration date, how is the unearned premium returned? - CORRECT ANSWERS Short-Rate basis What are the three basic perils? - CORRECT ANSWERS Fire, Lightning, and Internal Explosion What are the extended coverage perils? - CORRECT ANSWERS WCSHAVVER and V&MM -Wind, Civil commotion, Smoke, Hail, Aircraft, Vehicles, Volcanic Eruption, Explosion, Riot, Vandalism and malicious mischef Property and Casualty Insurance Test 95Question Notes and Answers all answers 100%correctly verified latest update 2024 RATED A+ What is the standard liability limit for coverage E in Part II of a standard homeowners policy? - CORRECT ANSWERS $100,000 per occurence What is the amount of reimbursement that an insured can receive for loss of earning due to the time spent in court if an insurance company requests the insured to testify in court? - CORRECT ANSWERS Up to $200 a day If an insured was injured in an auto accident during a work-related injury, how much can they claim on their own personal auto policy? - CORRECT ANSWERS $0 How much coverage is available under the emergency program for flood insurance? - CORRECT ANSWERS $35,000 dwelling coverage $15,000 contents coverage $2,000 deductible What type of coverage covers a mobile home in transit? - CORRECT ANSWERS Trip-Transit coverage When does mobile home coverage take effect? - CORRECT ANSWERS As soon as the mobile home is set on a permanent foundation What is Jettison? - CORRECT ANSWERS When the crew of a ship tosses cargo over the side of the ship What is Barrity? - CORRECT ANSWERS When a ship's crew commits criminal acts What is the special limit of watercraft under a homeowners policy, if not large enough to be excluded? - CORRECT ANSWERS $1,500 Which inland marine form provides open peril coverage for the same categories of property covered under the homeowners scheduled personal property endorsement? - CORRECT ANSWERS Personal articles form Property and Casualty Insurance Test 95Question Notes and Answers all answers 100%correctly verified latest update 2024 RATED A+ What is the standard deductible under the emergency program of the National Flood insurance program? - CORRECT ANSWERS $2,000 What type of coverages can be included in a Commercial Package Policy? - CORRECT ANSWERS Property, CGL, Auto, Inland Marine What is an interline endorsement? - CORRECT ANSWERS An endorsement that may be used with more than one line of insurance What is subrogation? - CORRECT ANSWERS A legal right that allows one party to make payment that is actually owed by another party, and then collect the money from the party that owes the debt after the fact When does coverage stop for vandalism in a vacant building under a property policy? - CORRECT ANSWERS 60 days Business personal property is covered while it is in within how many feet of the main premises? - CORRECT ANSWERS 100 feet What does a builders risk policy expire? - CORRECT ANSWERS When the project is completed, occupied, or abandoned In an extra expense coverage form, what amount of days are meant if the coverage states: 40%/80%/100% - CORRECT ANSWERS 30 days or less will pay 40% 31-60 days will pay 80% 61+ days will pay 100% What is the period of time that insurance considers a volcanic eruption or earthquake as one event? - CORRECT ANSWERS 168 hours (7 days) Property and Casualty Insurance Test 95Question Notes and Answers all answers 100%correctly verified latest update 2024 RATED A+ What are three coverages that equipment breakdown covers? - CORRECT ANSWERS Failure of pressure or vacuum equipment, electrical failure, mechanical failure What is one exception of of the products-completed operations exposure? - CORRECT ANSWERS Spoiled food What is the state legal minimum for fire liability? - CORRECT ANSWERS $50,000 In commercial general liability coverage, what coverage letter refers to medical payments? How long does someone have to report a loss? - CORRECT ANSWERS Coverage C; 1 year What are the three CGL coverage letters and meanings? - CORRECT ANSWERS A - Bodily Injury (caused by an occurence) B - Liable and Slander C - Medical Payments Which of the coverage forms on a CGL policy covers liability arising out of libel, slander or advertisements? - CORRECT ANSWERS Coverage B How long does the insured have to report expenses of medical payments under a Commercial General Liability policy? - CORRECT ANSWERS 1 year of the date of the accident What is the purpose of a retroactive date? - CORRECT ANSWERS Excludes claims made before the policy effective date How long does an Extended Reporting Period cover claims made after the expiration date of the policy? - CORRECT ANSWERS Extended, 60 days Covered up to 5 years with basic tail extension