Property and Casualty Review

Which of these is defined as maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims that may be made, or the number of accidents that may occur

Aggregate limit

Which of the following types of valuation works best for property? Whose value does not fluctuate much?

Agreed value

Insurable interest in a property policy must be proven

At the time of loss

A policy that ensures all property at multiple locations for a single male is referred to as

Blanket

How are state Insurance Guaranty Associations funded?

By their members - authorized insurers

An insured is driving her car through a residential area when she loses control and crashes into a neighbors front porch. The neighbor, who was sitting on the porch, is injured. The insured liability policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have?

Combined single

Which method of loss valuation is contrary to the basic concept of indemnity

Replacement cost

Negligence is defined as

The failure to do what a reasonable prudent person would do under given circumstances.

An insured building has an actual cash value of $200,000 and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

$30,000

How many days notice are required for cancellation on a commercial lines, property, and casualty policy for a reason of nonpayment of premium?

10 days

Which of the following is a mandatory part of an insurance policy that varies with each individual policy?

Declarations

In property and casualty insurance, what is the term for the amount of a law that the insured must cover out-of-pocket, and the insurer will only pay the additional amount of a loss above this limit?

Deductible

Which of the following provisions requires that the insured protects the damaged property from further damage, cooperates with the insurer and settling the loss, and submits to the insurer, signed proof of loss within a specific period of time?

Duties after loss

The loss ratio compares

Earned premium to losses

In insurance terms, what are components?

Factors that determine rates

Events or conditions increase the chances of an insured loss occurring are referred to as

Hazards

Otto fails to pay the premium on a personal lines property policy. Otto's policy can be canceled IF

His policy has been in effect for at least 60 days

The pro rata liability is designed to protect the principle of

Indemnity

In additional loss that results from a direct loss of property is called an

Indirect loss

Which of the following entities protects, policy owners, insured, and beneficiaries under insurance contracts, when insured failed to perform contractual obligations due to financial impairment?

Insurance Guaranty Association

All of the following are factors in the determination of actual cash value, EXCEPT

Insurance premium paid

All of the following statements, describe the concept of strict liability, EXCEPT

It is imposed on defendants engaged in hazardous activities.

Which reading method provides an insure with that portion of a rate that does not include provisions of expenses (other than adjusting expense) or profit, and is based on historical aggregate loss and loss adjustment expenses, projected through development to their ultimate value and through trending to a future future point in time

Loss costs rating

Rates that are established based on similarities of the risk with other risks are known as

Manual rates or class rates

An insured who has coverage for all his personal property has his TV stolen from the shop of the repairman. The owner of the repair shop filed a claim under the insured policy, but it paid nothing to the owner of the store. Which provision does the policy have

No benefit to bailiee clause

When an insurance policy does not offer a continuation or replacement at its expiration date it is considered a

Nonrenewal

Duties of the insurer found in property policy conditions include all of the following, EXCEPT

Notify the insured in the event of financial difficulty

An insured has a liability policy that sets the amount for all claims that arise from a single incident at $50,000. Which type of limit of liability does this insured policy have?

Per occurrence

All the following are considered parts of the policy structure, EXCEPT

Provisions

What fundamental principle in property insurance holds that when there is an unbroken connection between an incurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the occurrence

Proximate clause

A building is insured, but no one has lived or worked in it for 10 years. The building is completely empty of any furniture or personal belongings. From an insurance standpoint, the building is considered.

vacant

What are all the required elements for establishing a charge of negligence?

legal duty owed, standard of care, proximate cause, damages