Package deal
EXAM FX PROPERTY AND CASUALTY TESTS COMPILATION BUNDLE
EXAM FX PROPERTY AND CASUALTY TESTS COMPILATION BUNDLE
[Show more]EXAM FX PROPERTY AND CASUALTY TESTS COMPILATION BUNDLE
[Show more]Insurance Transactions include what 4 tactics correct answer: Solicitation 
Negotiation 
Sale 
Advising 
 
2 types of Risk correct answer: 1. Pure 
2. Speculative 
 
Pure Risk Definition correct answer: A risk that can only can result in loss or no change 
 
Speculative Risk Definition correct a...
Preview 2 out of 11 pages
Add to cartInsurance Transactions include what 4 tactics correct answer: Solicitation 
Negotiation 
Sale 
Advising 
 
2 types of Risk correct answer: 1. Pure 
2. Speculative 
 
Pure Risk Definition correct answer: A risk that can only can result in loss or no change 
 
Speculative Risk Definition correct a...
Abandonment correct answer: The abdication of insured property into the hands of another, or into the possession of no one in particular. 
 
Accident correct answer: An unplanned, unforeseen event which occurs suddenly and at a specific place. 
 
Actual Cash Value (ACV) correct answer: The requir...
Preview 3 out of 23 pages
Add to cartAbandonment correct answer: The abdication of insured property into the hands of another, or into the possession of no one in particular. 
 
Accident correct answer: An unplanned, unforeseen event which occurs suddenly and at a specific place. 
 
Actual Cash Value (ACV) correct answer: The requir...
3 coverage forms available under dwelling program correct answer: -basic 
-broad 
-special forms 
 
Is liability coverage included under dwelling program? correct answer: No, but can be added 
 
Does the dwelling policy can be used to insure: 
a) dwelling only 
b)contents only 
c)both dwelling and...
Preview 4 out of 46 pages
Add to cart3 coverage forms available under dwelling program correct answer: -basic 
-broad 
-special forms 
 
Is liability coverage included under dwelling program? correct answer: No, but can be added 
 
Does the dwelling policy can be used to insure: 
a) dwelling only 
b)contents only 
c)both dwelling and...
Earned Premium correct answer: Portion of the premium paid in advance that now belongs to the insurer because it applies to the elapsed part of the policy. 
 
Exposure Units correct answer: used as a measure of the rating units or the premium base of a risk 
 
Exposure Unit Formula correct answer:...
Preview 2 out of 15 pages
Add to cartEarned Premium correct answer: Portion of the premium paid in advance that now belongs to the insurer because it applies to the elapsed part of the policy. 
 
Exposure Units correct answer: used as a measure of the rating units or the premium base of a risk 
 
Exposure Unit Formula correct answer:...
The members of a limited liability company are insureds under a businessowners policy (BOP) if correct answer: The limited liability company is designated as the named insured. 
 
An endorsement added to a businessowners policy that provides coverage for direct damage caused by utility service disr...
Preview 4 out of 62 pages
Add to cartThe members of a limited liability company are insureds under a businessowners policy (BOP) if correct answer: The limited liability company is designated as the named insured. 
 
An endorsement added to a businessowners policy that provides coverage for direct damage caused by utility service disr...
Insurable Interest correct answer: Stand to suffer an economic loss - follows ownership! Has to be known when loss occurs 
 
Underwriting correct answer: Underwriters function is to evaluate risks - reviewing the application. Risk selection process 
 
Formula for Loss Ratio? correct answer: Loss ...
Preview 2 out of 13 pages
Add to cartInsurable Interest correct answer: Stand to suffer an economic loss - follows ownership! Has to be known when loss occurs 
 
Underwriting correct answer: Underwriters function is to evaluate risks - reviewing the application. Risk selection process 
 
Formula for Loss Ratio? correct answer: Loss ...
Policy Components correct answer: Policy Cover 
Common Declarations 
Interline Endorsements 
Common Policy Conditions 
 
Coverage Part Components correct answer: Declarations 
Coverage Forms 
Conditions 
Endorsements 
 
General Form Structure correct answer: General Liability 
Commercial Property...
Preview 3 out of 19 pages
Add to cartPolicy Components correct answer: Policy Cover 
Common Declarations 
Interline Endorsements 
Common Policy Conditions 
 
Coverage Part Components correct answer: Declarations 
Coverage Forms 
Conditions 
Endorsements 
 
General Form Structure correct answer: General Liability 
Commercial Property...
To be considered an insurable risk, a loss may NOT be correct answer: catastrophic 
 
Which of the following persons would be required to hold a producer license? correct answer: a nonresident agent who negotiates insurance contracts 
 
Which of the following is the oldest known type of insurance?...
Preview 2 out of 11 pages
Add to cartTo be considered an insurable risk, a loss may NOT be correct answer: catastrophic 
 
Which of the following persons would be required to hold a producer license? correct answer: a nonresident agent who negotiates insurance contracts 
 
Which of the following is the oldest known type of insurance?...
What sublimit in a liability policy sets the maximum amount that will be paid for all claims arising from a single accident? correct answer: Per occurrence 
 
In reference to insurable interest, which of the following is NOT an element of insurable risk? correct answer: Personal 
 
Businessowners ...
Preview 2 out of 8 pages
Add to cartWhat sublimit in a liability policy sets the maximum amount that will be paid for all claims arising from a single accident? correct answer: Per occurrence 
 
In reference to insurable interest, which of the following is NOT an element of insurable risk? correct answer: Personal 
 
Businessowners ...
Financial(monetary interest) 
Blood(a relative) 
Business(a business partner) correct answer: 3 elements of insurable risk 
 
at the time of the loss correct answer: In property and casualty insurance, insurable interest must exist __ ___ ____ __ ___ ____ 
 
insured correct answer: anyone who is ...
Preview 2 out of 14 pages
Add to cartFinancial(monetary interest) 
Blood(a relative) 
Business(a business partner) correct answer: 3 elements of insurable risk 
 
at the time of the loss correct answer: In property and casualty insurance, insurable interest must exist __ ___ ____ __ ___ ____ 
 
insured correct answer: anyone who is ...
In Return for premium, and insurance company must.. correct answer: Be Fair in underwriting and pay covered losses 
 
In return for premium, an insurance company must be fair and impartial in underwriting of risks and must pay claims made for all covered losses. 
 
The part of a policy that clarifi...
Preview 3 out of 30 pages
Add to cartIn Return for premium, and insurance company must.. correct answer: Be Fair in underwriting and pay covered losses 
 
In return for premium, an insurance company must be fair and impartial in underwriting of risks and must pay claims made for all covered losses. 
 
The part of a policy that clarifi...
Judgement rating - Rating used by underwriters to rate one-of-a-kind risks. 
 
Schedule Rating - A rating plan that awards debits and credits based on specific categories, such as the care and condition of the premises or the training and selection of employees, to modify the final premium to reflec...
Preview 2 out of 5 pages
Add to cartJudgement rating - Rating used by underwriters to rate one-of-a-kind risks. 
 
Schedule Rating - A rating plan that awards debits and credits based on specific categories, such as the care and condition of the premises or the training and selection of employees, to modify the final premium to reflec...
An endorsement is available for hired and nonowned auto on BOP liability... 
A. Only if the insured does not have commercial auto coverage 
B. In addition to commercial auto coverage 
C. Only if the insured has 4 or more employees 
D. Never correct answer: A 
 
The Mail Coverage Form is always writ...
Preview 4 out of 55 pages
Add to cartAn endorsement is available for hired and nonowned auto on BOP liability... 
A. Only if the insured does not have commercial auto coverage 
B. In addition to commercial auto coverage 
C. Only if the insured has 4 or more employees 
D. Never correct answer: A 
 
The Mail Coverage Form is always writ...
The insured's mother-in-law broke her leg falling down the front steps of the insured's premises. The insured's homeowners medical payments coverage will correct answer: Apply to injuries of any guests or visitors. 
 
First aid costs for others injured on the insured's premises correct answer: ...
Preview 2 out of 7 pages
Add to cartThe insured's mother-in-law broke her leg falling down the front steps of the insured's premises. The insured's homeowners medical payments coverage will correct answer: Apply to injuries of any guests or visitors. 
 
First aid costs for others injured on the insured's premises correct answer: ...
what are the 3 separate coverage forms available under the dwelling program? correct answer: basic, broad, and special 
 
In practice, the dwelling property policy is commonly used to insure ______ _______ correct answer: rental dwellings 
 
what are the corresponding form numbers for dwelling pro...
Preview 2 out of 9 pages
Add to cartwhat are the 3 separate coverage forms available under the dwelling program? correct answer: basic, broad, and special 
 
In practice, the dwelling property policy is commonly used to insure ______ _______ correct answer: rental dwellings 
 
what are the corresponding form numbers for dwelling pro...
The declarations section in a homeowners policy provides all of the following information EXCEPT correct answer: Policy exclusions 
 
An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request? correct answer:...
Preview 2 out of 7 pages
Add to cartThe declarations section in a homeowners policy provides all of the following information EXCEPT correct answer: Policy exclusions 
 
An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request? correct answer:...
Restoring an insured financially after a claim is known as correct answer: indemnity 
 
Prior to paying a claimant under a professional liability policy, the 
insurer must correct answer: Obtain the consent of the insured. 
 
The purpose of purchasing an umbrella liability policy is to provide cor...
Preview 3 out of 24 pages
Add to cartRestoring an insured financially after a claim is known as correct answer: indemnity 
 
Prior to paying a claimant under a professional liability policy, the 
insurer must correct answer: Obtain the consent of the insured. 
 
The purpose of purchasing an umbrella liability policy is to provide cor...
HO - 2 - Broad Form 
Named Peril 
 
HO - 3 - Special Form 
Open & Named Peril 
 
HO - 4 - Renters/Tenants Form 
Named Peril 
 
HO - 5 - Comprehensive Form 
Open Peril 
 
HO - 6 - Condo Form 
Named Peril 
 
HO - 8 - Modified Form 
Named Peril 
 
Homeowners Liability - Coverages E & F 
 
Homeowners Li...
Preview 1 out of 3 pages
Add to cartHO - 2 - Broad Form 
Named Peril 
 
HO - 3 - Special Form 
Open & Named Peril 
 
HO - 4 - Renters/Tenants Form 
Named Peril 
 
HO - 5 - Comprehensive Form 
Open Peril 
 
HO - 6 - Condo Form 
Named Peril 
 
HO - 8 - Modified Form 
Named Peril 
 
Homeowners Liability - Coverages E & F 
 
Homeowners Li...
____ is uncertainty of loss correct answer: risk 
 
____ is a transfer of risk from the insured to the insurer correct answer: insurance 
 
____ risk means there is no chance of gain. It is insurable. correct answer: pure 
 
____ risk means there is a chance of a loss or a gain. It is not insurab...
Preview 4 out of 49 pages
Add to cart____ is uncertainty of loss correct answer: risk 
 
____ is a transfer of risk from the insured to the insurer correct answer: insurance 
 
____ risk means there is no chance of gain. It is insurable. correct answer: pure 
 
____ risk means there is a chance of a loss or a gain. It is not insurab...
Which of the following policies does NOT contain an automatic reinstatement provision? 
a) Business automobile liability 
b) Personal automobile liability with split limits 
c) Homeowners 
d) General liability written with an aggregate limit correct answer: General Liability written with an aggrega...
Preview 3 out of 17 pages
Add to cartWhich of the following policies does NOT contain an automatic reinstatement provision? 
a) Business automobile liability 
b) Personal automobile liability with split limits 
c) Homeowners 
d) General liability written with an aggregate limit correct answer: General Liability written with an aggrega...
Law of Large Numbers correct answer: The larger the number of people with a similar exposure to loss, the more predictable actual losses will be. 
 
Insurance correct answer: Transfers the risk of loss from an individual or business entity to an insurance company 
 
The three elements of insurable...
Preview 3 out of 18 pages
Add to cartLaw of Large Numbers correct answer: The larger the number of people with a similar exposure to loss, the more predictable actual losses will be. 
 
Insurance correct answer: Transfers the risk of loss from an individual or business entity to an insurance company 
 
The three elements of insurable...
The larger the number of people with a similar exposure to loss, the more predictable actual losses will be. correct answer: Law of Large Numbers 
 
Transfers the risk of loss from an individual or business entity to an insurance company correct answer: Insurance 
 
1) Financial 2) Blood (relative...
Preview 3 out of 18 pages
Add to cartThe larger the number of people with a similar exposure to loss, the more predictable actual losses will be. correct answer: Law of Large Numbers 
 
Transfers the risk of loss from an individual or business entity to an insurance company correct answer: Insurance 
 
1) Financial 2) Blood (relative...
1. In dwelling policies, automatic increase in insurance is 
 
 
(Choose from the following options) 
1. Coverage for newly acquired property. 
2. Coverage by endorsement. 
3. Automatic coverage. 
4. Coverage without additional premium. correct answer: 2. Coverage by endorsement. 
 
2. Personal b...
Preview 4 out of 246 pages
Add to cart1. In dwelling policies, automatic increase in insurance is 
 
 
(Choose from the following options) 
1. Coverage for newly acquired property. 
2. Coverage by endorsement. 
3. Automatic coverage. 
4. Coverage without additional premium. correct answer: 2. Coverage by endorsement. 
 
2. Personal b...
Which dwelling policy coverage will provide protection for contents damaged by fire in an insured dwelling? correct answer: Coverage C-Personal Property 
 
Under what conditions can broad theft coverage be added to a dwelling policy? correct answer: if the insured is the owner-occupant of the dwel...
Preview 4 out of 62 pages
Add to cartWhich dwelling policy coverage will provide protection for contents damaged by fire in an insured dwelling? correct answer: Coverage C-Personal Property 
 
Under what conditions can broad theft coverage be added to a dwelling policy? correct answer: if the insured is the owner-occupant of the dwel...
A golfer slices a tee shot and the ball goes through the window of a house beside the fairway. The broken glass is paid for by correct answer: The golfer's homeowners liability coverage 
 
What was the purpose of the Motor Carrier Act of 1980? correct answer: To establish financial responsibility...
Preview 3 out of 22 pages
Add to cartA golfer slices a tee shot and the ball goes through the window of a house beside the fairway. The broken glass is paid for by correct answer: The golfer's homeowners liability coverage 
 
What was the purpose of the Motor Carrier Act of 1980? correct answer: To establish financial responsibility...
What is burglary? correct answer: The forced entry into another's premises with felonious intent. 
 
Under absolute liability, does an injured party need to prove negligence? correct answer: No. Absolute liability exists when a condition or conduct is inherently dangerous, so proof of negligence ...
Preview 1 out of 4 pages
Add to cartWhat is burglary? correct answer: The forced entry into another's premises with felonious intent. 
 
Under absolute liability, does an injured party need to prove negligence? correct answer: No. Absolute liability exists when a condition or conduct is inherently dangerous, so proof of negligence ...
Personal Lines - Includes Dwelling and Homeowners policies 
 
Commercial Lines - Business policies such as Businessowners, Commercial Property and Commercial Package policies 
 
Dwelling Property Policy - Insures properties solely used for residential purposes, can be used to insure the dwelling onl...
Preview 1 out of 3 pages
Add to cartPersonal Lines - Includes Dwelling and Homeowners policies 
 
Commercial Lines - Business policies such as Businessowners, Commercial Property and Commercial Package policies 
 
Dwelling Property Policy - Insures properties solely used for residential purposes, can be used to insure the dwelling onl...
Which endorsement Is used by individual business owners who use Company vehicles for personal use rather than Buying a car? correct answer: Individual named insured 
 
What type of liablity would a person who owns wild animals have? correct answer: Absolute 
 
The designation symbols used in comme...
Preview 3 out of 27 pages
Add to cartWhich endorsement Is used by individual business owners who use Company vehicles for personal use rather than Buying a car? correct answer: Individual named insured 
 
What type of liablity would a person who owns wild animals have? correct answer: Absolute 
 
The designation symbols used in comme...
Dwelling ('02) Policy correct answer: Is used to insure 1-4 unit residential dwellings that are not eligible for coverage under the regular homeowners program because of age, location, value, or other factors. 
 
3 Coverage Forms (Dwelling Program) correct answer: 1.DP 00 01- Basic 
2.DP 00 02-Br...
Preview 3 out of 21 pages
Add to cartDwelling ('02) Policy correct answer: Is used to insure 1-4 unit residential dwellings that are not eligible for coverage under the regular homeowners program because of age, location, value, or other factors. 
 
3 Coverage Forms (Dwelling Program) correct answer: 1.DP 00 01- Basic 
2.DP 00 02-Br...
Situations to Purchase Dwelling Property Policy correct answer: •Up to 5 roomers/boarders 
•Up to 4 residential units, property in construction 
•Owner occupied or tenant occupied, mobile homes •seasonal dwellings 
 
DP 1 correct answer: Basic Form - Named Peril 
 
DP 2 correct answer: B...
Preview 2 out of 5 pages
Add to cartSituations to Purchase Dwelling Property Policy correct answer: •Up to 5 roomers/boarders 
•Up to 4 residential units, property in construction 
•Owner occupied or tenant occupied, mobile homes •seasonal dwellings 
 
DP 1 correct answer: Basic Form - Named Peril 
 
DP 2 correct answer: B...
An insured has four separate but identical policies written by different insurers to cover her $100,000 building. Each policy is written for $100,000, and each has the pro rata liability other insurance clause. In the event of a total loss to the building, what would each insurer pay? correct answer...
Preview 1 out of 3 pages
Add to cartAn insured has four separate but identical policies written by different insurers to cover her $100,000 building. Each policy is written for $100,000, and each has the pro rata liability other insurance clause. In the event of a total loss to the building, what would each insurer pay? correct answer...
Insurable Interest correct answer: Something that, if damaged, will cause the insured to incur financial loss 
 
Risk correct answer: Chance of loss occurring 
 
Pure Risk correct answer: Situations that can only result in loss or no change (Insurable) 
 
Speculative Risk correct answer: Involve...
Preview 2 out of 7 pages
Add to cartInsurable Interest correct answer: Something that, if damaged, will cause the insured to incur financial loss 
 
Risk correct answer: Chance of loss occurring 
 
Pure Risk correct answer: Situations that can only result in loss or no change (Insurable) 
 
Speculative Risk correct answer: Involve...
Duties of the insurer found in property policy conditions include all of the following EXCEPT 
a) Return any premiums to the insured. 
b) Notify the insured in the event of financial difficulty. 
c) Pay covered losses. 
d) Provide advance notice of cancellation. correct answer: B 
 
According to th...
Preview 2 out of 13 pages
Add to cartDuties of the insurer found in property policy conditions include all of the following EXCEPT 
a) Return any premiums to the insured. 
b) Notify the insured in the event of financial difficulty. 
c) Pay covered losses. 
d) Provide advance notice of cancellation. correct answer: B 
 
According to th...
An insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he insure the property for? 
a) 80% of the property's replacement cost or more 
b) 100% of the market value 
c) $400,000 
d) $32,000 correct answer: A 
 
Whi...
Preview 1 out of 3 pages
Add to cartAn insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he insure the property for? 
a) 80% of the property's replacement cost or more 
b) 100% of the market value 
c) $400,000 
d) $32,000 correct answer: A 
 
Whi...
Risk is correct answer: uncertainty of loss. 
 
Insurance is correct answer: a transfer of risk from the insured to the insurer. 
 
Pure risk means correct answer: there is no chance of gain. 
 
Pure risk is correct answer: insurable. 
 
Speculative risk means correct answer: you could lose or ...
Preview 2 out of 11 pages
Add to cartRisk is correct answer: uncertainty of loss. 
 
Insurance is correct answer: a transfer of risk from the insured to the insurer. 
 
Pure risk means correct answer: there is no chance of gain. 
 
Pure risk is correct answer: insurable. 
 
Speculative risk means correct answer: you could lose or ...
If an auto policy has split limits of 30/50/25, what is the maximum amount the policy will pay for injuries to one person in a single accident? correct answer: $30,000 - Split limits expressed as 30/50/25 would provide $30,000 coverage for bodily injury per person, $50,000 for all bodily injuries, ...
Preview 2 out of 11 pages
Add to cartIf an auto policy has split limits of 30/50/25, what is the maximum amount the policy will pay for injuries to one person in a single accident? correct answer: $30,000 - Split limits expressed as 30/50/25 would provide $30,000 coverage for bodily injury per person, $50,000 for all bodily injuries, ...
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Stuvia is a marketplace, so you are not buying this document from us, but from seller Demetrius. Stuvia facilitates payment to the seller.
No, you only buy these notes for $43.99. You're not tied to anything after your purchase.
4.6 stars on Google & Trustpilot (+1000 reviews)
72042 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now