Property and casualty basics

First party wrist protection

An individual purchased her own personal property insurance policy on her newly purchased dream home. This type of insurance coverage that applies to the insured's on property is known ass

Arbitration

Bob insist that the insurer owes him $10,000 for liability damages, while his insurer asserts that they owe him no more than $7000. Which of the following would most likely just grab the type of claim settlement that they might pursue?

Concurrent causation

Many circumstances the action of more than one causes produces a particular harm or loss to an insured. The predominant legal rule is that if the losses caused by both an insured peril and in uninsured peril, coverage is deemed to apply. This rule of law is called?

Direct loss

Physical damage to buildings and/or personal property. This also includes other damage where the insured Peril was the proximate cause of loss.

Manual rates

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

Pro rata cancellation

The termination of an insurance contract with the premium charge been adjusted in proportion to the exact time the production has been in force is considered a

Judgment

Using an air cooled engine, a proposed insured has developed a new, experimental aircraft. If the inventor applies for liability insurance, what rating type would insurer most likely use?

Loss of use

Which of the following coverages and dwelling and homeowners policies is for indirect losses?

Short rate

Which of the following is a cancellation procedure in which the premium return to the insured is not in direct proportion to the number of days remaining in the policy period?

Direct loss

A beauty parlor burns to the ground. What type of loss is this to the owner?

Premiums would go down

A contractor who builds homes has never made a claim on his business insurance policy. His age and discovers that his policy is written on a scheduled reading. If the contractor changes to an experience rating policy, which is most likely?

Liability insurance

Adam is injured in a car accident caused by John. What kind of insurance would cover johns obligation to pay and Adams injuries?

Revenues received from investments

All of the following would be considered an expense of an insurance company except

Experience

Compared with other drivers in his age group, a driver has had more minor accidents and traffic violations. Which of the following reading types would most accurately reflect the drivers through insurance risk?

Subrogation

The policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is called

Rate

The premium is determined by multiplying the number of units of insurance purchased times the?

Loss

The reduction, decrease, or disappearance of value of the person or property insured in a policy by a peril insured against is known as

A.m. best

This assigns ratings to life, property and casualty insurance companies based upon the financial stability of the insurer.

Consequential loss

This is known as indirect losses, is a second financial loss caused by a cover direct loss.

Judgment rating

This rate is when it is not possible to read the risk based upon history or experience. For those reasons this type of writing is the most likely system.

Guides describing company financial integrity

What insurance concept is associated with the names Weiss and Fitch?

Direct loss

What term includes damage where the insured peril was the proximate cause of loss?

Open peril policy

What type of insurance policy and Sher's against all risk of loss better not specifically excluded by the policy?

Arbitration through the court

When a disagreement occurs as to how to settle a loss in a fender bender between two cars, what procedure is followed?

A sudden, unplanned and unexpected event, not under the control of the insured, resulting in injury or damage neither expected nor intended

Which of the following definitions best defines the term accident?

Loss

Which of the following is the basis for a claim against an insurance policy?

Cancellation

Which of the following terms describes the act of revoking or terminating ones insurance policy?

Combined ratio

Which of the following terms describes the ratio that is the percentage of each premium dollar a property/casualty insurer spends on claims and expenses?

Occurrence

Losses caused by continuous or repeated exposure to conditions resulting in injury persons or damage to property that is neither intended nor expected is the definition of which of the following terms?

Arbitration

When and insured and insurer cannot agree on how to settle a claim, this is often used. The settlement is submitted to a specialist who's decision may or may not be binding on both parties dependent on state law.

Subrogation

When insured's except last payment from the insurance company, they must transfer the rights to recovery to the insurance. This prevents the insured from collecting twice for the same loss and allow the insurer to indemnify the insurance company.

Indirect loss

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

Consequential

And insurance business is damaged because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?

California workers comp inspection rating bureau (WCIRB)

And on Inc. nonprofit association representing all insurance companies in the state of California license to transact Worker's Compensation insurance is known as?

California workers comp inspection rating bureau (WCIRB)

And unincorporated, nonprofit association representing all insurance companies in the state of California license to transact workers compensation insurance is known as?

A loss is caused by both a covered and an uncovered peril

Con current causation occurs when

Rate

The cost of a unit of insurance is known as the

Subrogation

The legal process that gives the insurer after payment of loss, the right to seek recovery from a third-party that was responsible for this loss is known as

Pro rata cancellation

The termination of an insurance contract with the premium charge being adjusted in proportion to the exact time the protection has been enforced is considered a?

Subrogation

The transfer of an insured's right to seek damages from negligent party to the insurer is found in which of the following clauses?

Subrogation

This is a provision found in most insurance policies that give the insurer, after payment of loss caused by third-party, the insured's rights to recovery against that third-party. The insurance rates are only to the extent of the last payment.

Insurance services office

Which of the following organizations has the primary responsibility forms for the standard market?

A.m. best

Which of the following pretty sister valuations of insurers financial status often used by state department of insurance?

Rating the financial strength of insurance companies

Which services are associated with standard and poors and a.m. best?