Property and Casualty Insurance EXAM Solved Papers - Questions with Complete Solutions This type of insurance designates a particular item to be insured - Correct Answers ✅Specific insurance This type of insurance covers more than one item of property at a single location or one more items of property at multiple locations. - Correct Answers ✅Blanket insurance possibility of both gain and loss. Not insurable. - Correct Answers ✅Speculative only the possibility of loss. Insurable. - Correct Answers ✅Pure avoid, control, retain, and transfer risk. - Correct Answers ✅What are the 5 methods of managing or handling risk?A condition or situation which increases the chance for loss - Correct Answers ✅Hazard a hazard that arises from the condition, occupancy, or use of the property itself.
ex: skateboard left on the steps - Correct Answers
✅Physical Hazards 1 / 4
Property and Casualty Insurance EXAM Solved Papers - Questions with Complete Solutions when an individual through carelessness or by irresponsible actions can increase the possibly for a loss.
ex: person who drives carelessly just because they know they
are insured. - Correct Answers ✅Moral Hazards when a person might create a loss situation on purpose just to collect from the insurance company.
ex: Prearranged, faked theft of someone's old vehicle so they
can get an insurance payout to buy a new vehicle. - Correct Answers ✅Morale Hazards The amount of money it would take to replace a damaged or destroyed item with one of like kind and quality AT THE TIME OF LOSS. No deduction for depreciation. - Correct Answers ✅Replacement Cost Replacement Cost, minus depreciation. - Correct Answers ✅Actual Cash Value (ACV) Loss to one item of a pair or set does not constitute loss to the entire pair or set. - Correct Answers ✅Pair and Set Clause 2 / 4
Property and Casualty Insurance EXAM Solved Papers - Questions with Complete Solutions A method of resolving disputes between insurers and insureds over the amount owed on a covered loss.-both parties select an appraiser -the two appraisers select an umpire -if the appraisers do not agree, the umpire is consulted -the amount agreed on by 2 out of 3 is the amount that will be paid - Correct Answers ✅Appraisal An insurer's right to recover the amount of its loss payment from the third party who is legally responsible for the loss. - Correct Answers ✅Subrogation this condition is similar to the Appraisal Condition but it is not limited to disputes over the value of the loss. It may also be used to resolve other areas of disagreement between the insured and the insurance company. - Correct Answers ✅Arbitration Windstorm, Civil commotion, Smoke, Hail, Aircraft, Vehicles, Volcanic eruption, Explosion, Riot - Correct Answers ✅What does WC SHAVVER stand for? 3 / 4
Property and Casualty Insurance EXAM Solved Papers - Questions with Complete Solutions Burglar damage, Ice & snow weight, Glass breakage, Accidental discharge, Falling objects, Freezing of pipes, Electrical damage, Collapse, Tearing apart. - Correct Answers ✅What does BIG AFFECT stand for?A financial state that occurs if liabilities are greater than assets. - Correct Answers ✅Insolvency Knowledge of the Agents is Knowledge of the Principal (Insurance Company) - Correct Answers ✅Law of Agency Insurance Company - Correct Answers ✅Principal Insurance Services Office which is an organization established for the benefit of its member insurance companies. This organization gathers statistics, provides loss costs, drafts policy forms and coverage provisions and conducts inspections for rate making purposes. - Correct Answers ✅What is the ISO?Requires the insured to carry a minimum specified amount (generally 80%) of the replacement cost value of the insured property in order for partial losses to be paid in full. - Correct Answers ✅Coinsurance Clause
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