Illinois Casualty Insurance Exam Review Solved Papers - Questions with Complete Solutions Premium - Correct Answers ✅money paid by the insured to the insurance company in exchange for the insurance policy Lapse - Correct Answers ✅when a policy is terminated due to non-payment of premiums First Party Claimant - Correct Answers ✅is an insured making a claim under their own policy for damage to their insured property Third Party Claimant - Correct Answers ✅is a person or organization other than the insured making a claim against an insured for the insured to submit to their insurance company for insurance coverage Legal Liability - Correct Answers ✅occurs when an insured is involved in an accident or an occurrence in which a third party claimant is injured or incurs property damage Peril - Correct Answers ✅is an actual cost of loss that can be insured against - legal liability 1 / 4
Illinois Casualty Insurance Exam Review Solved Papers - Questions with Complete Solutions hazard - Correct Answers ✅is a condition or operation in property which either creates or increases the chance of loss by a covered peril - ie bad driving habits risk - Correct Answers ✅likelihood or degree of uncertainty that a covered peril will cause a loss Insurable Interest - Correct Answers ✅financial risk which the insured must possess at the time of loss Limits of Liability - Correct Answers ✅maximum amounts which the insurance company will pay under each coverage - aka Face amount or Amount carried Aggregate Limit - Correct Answers ✅maximum limit of liability that the policy will pay to all persons who are injured or who incur property damage in an occurrence Additional coverages - Correct Answers ✅Things specified in homeowner policies that the insurance company will pay for in addition to the homeowner policy limits of liability Supplemental Payments - Correct Answers ✅Things specified in auto policies that the insurance company will pay for in addition to the auto policy limits of liability 2 / 4
Illinois Casualty Insurance Exam Review Solved Papers - Questions with Complete Solutions Certificate of Insurance - Correct Answers ✅issued by an insurance company to someone other than a named insured as official documentation of coverage Declaration Page - Correct Answers ✅the information page - effective date and expiration date Moral hazard - Correct Answers ✅risk of loss is caused by the insured acting in an indifferent, careless, or irresponsible manner.Morale Hazard - Correct Answers ✅when there is risk of loss due to legal action - a loss caused by order of civil authority (another name that can be used for civil authority is legal authority) Physical Hazard - Correct Answers ✅when there is a risk of loss due to condition or use of the property. ie; wear, tear, rot, settling, insects, rodents, vermin or mold. These losses are sometimes due to condition of the property or the property not being properly maintained Three Reasons People Buy Liability Insurance - Correct Answers ✅1- sometimes required by law 3 / 4
Illinois Casualty Insurance Exam Review Solved Papers - Questions with Complete Solutions 2- protects assets and income should the insured be involved in an accident or an occurance that was unintended but which occured in such a way that a court would find the insured is legally liable (responsible) for another person's injuries and or damages 3- If a claim is covered, a liability policy will provide the insured's defense Liability Coverage - Correct Answers ✅issued as a separate policy or other times it is packaged together with property insurance covers It is possible for an insured to have liability coverage in effect at the time of an accident, for the claimant to have injuries, for the claimant to make a claim, for the insured to be covered, but the insurance company to pay no money to the claimant An insurance company will pay an injured claimant on a liability claim only if the insurance company determines that a court would find the insured legally liable and a court would order the insured to pay to the claimant if the claim were to go to court hearing Omission - Correct Answers ✅failing to do something that he should have done
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