Workers Compensation - CORRECT ANSWER Benefits required by state law to be
paid to an employee by an employer in the case of injury, disability, or death as the
result of an on-the-job hazard.
Warranty - CORRECT ANSWER A material stipulation in the policy that if breached
may void coverage.
...
Examfx Property and Casualty Exam | 93
Questions with 100% Correct Answers
|GRADED
Workers Compensation - CORRECT ANSWER Benefits required by state law to be
paid to an employee by an employer in the case of injury, disability, or death as the
result of an on-the-job hazard.
Warranty - CORRECT ANSWER A material stipulation in the policy that if breached
may void coverage.
Waiver - CORRECT ANSWER The voluntary abandonment of a known or legal
right or advantage.
Waiting Period - CORRECT ANSWER Time between the beginning of a disability
and the start of disability insurance benefits.
Vicarious Liability - CORRECT ANSWER A type of liability in which one person is
responsible for the acts of another. For example, employers may be vicariously liable for
the actions of their employees, and parents may be held responsible for negligent acts of
their children.
Valued Policy - CORRECT ANSWER A policy used when it is difficult to establish
the actual cash value of insured property after a loss occurs because of its rarity or
uniqueness. A valued policy provides for payment of the full policy amount in the event
of a total loss without regard to actual value or depreciation.
Vacant - CORRECT ANSWER A property that has no contents, furnishings, or
occupants.
Upmost Good Faith - CORRECT ANSWER The fair and equal bargaining by both
parties in forming the contract, where the applicant must make full disclosure of risk to
the company, and the insurance company must be fair in underwriting the risk.
Unoccupied - CORRECT ANSWER A property that has contents or furnishings in it,
but is not being used or lived in.
Unintentional Tort - CORRECT ANSWER The result of acting without proper care,
generally referred to as negligence.
,Uninsured Motorist Coverage - CORRECT ANSWER Coverage that allows the
named insured, resident relative(s) and passengers in a covered auto to collect sums
another driver would be legally liable to pay for bodily injury resulting from an auto
accident, providing the accident was caused by an uninsured motorist, a hit-and-run
driver or a driver whose insurance company is insolvent.
Underinsured Motorist Coverage - CORRECT ANSWER Coverage in an
automobile insurance policy under which the insurer will pay costs up to specified limits
for bodily injury, if the liable driver's policy limits are exhausted and he/she cannot pay
the full amount for which he or she is liable.
Unilateral Contract - CORRECT ANSWER A contract that legally binds only one
party to contractual obligations after the premium is paid.
Underwriting - CORRECT ANSWER The process of reviewing, accepting or
rejecting applications for insurance.
Underwriter - CORRECT ANSWER A person who evaluates and classifies risks to
accept or reject them on behalf of the insurer.
Unauthorized Insurer - CORRECT ANSWER An insurance company that has not
applied, or has applied and been denied a Certificate of Authority.
Umbrella Liability Coverage - CORRECT ANSWER Coverage that provides extra
protection against liability, and excess amount of insurance above the primary policy.
Twisting - CORRECT ANSWER A form of misrepresentation in which an agent
persuades an insured/owner to cancel, lapse, or switch policies, even when it's to the
insured's disadvantage.
Transfer - CORRECT ANSWER A basic principle of insurance under which the risk
of financial loss is assigned to another party.
Tort - CORRECT ANSWER A wrongful act or the violation of someone's rights that
leads to legal liability. Torts are classified as intentional or unilateral (referred to as
negligence).
Third-Party Provisions - CORRECT ANSWER Insurance provisions that address
the rights of someone other than the policyowner to have a secured financial interest in
the insured property.
Theft - CORRECT ANSWER Any act of stealing or removing property from its
rightful owner. Theft encompasses both burglary and robbery.
, Surplus Lines - CORRECT ANSWER Insurance for which there is no readily
available, admitted market.
Surety Bond - CORRECT ANSWER A guarantee that debts and obligations will be
carried out, and the benefits will be paid for losses caused by nonperformance.
Superintendent (Commissioner, Director) - CORRECT ANSWER The head of the
state department of insurance.
Subrogation - CORRECT ANSWER The acquisition by an insurer of an insured's
rights against any third party for indemnification of loss or other payment, to the extent
that the insurer pays the loss.
Strict Liability - CORRECT ANSWER A liability that refers to damages caused by
defective products even though the manufacturer's fault or negligence cannot be proven.
Stock Companies - CORRECT ANSWER Companies owned by the stockholders
whose investments provide the capital necessary to establish and operate the insurance
company.
Statute Law - CORRECT ANSWER The written law as enacted by a legislative
body (i.e. the laws of the state), which generally takes precedence in cases where both
common law and statute law apply.
Stated Amount - CORRECT ANSWER An amount of insurance scheduled in a
property policy which is not subject to any coinsurance requirements in the event of a
covered loss.
Split - CORRECT ANSWER Separately stated limits of liability for different
coverage, which may be stated on a per person, per occurrence, per policy period basis,
or can be divided between bodily injury and property damage.
Speculative Risk - CORRECT ANSWER The uncertainty or chance of a loss
occurring in a situation that involves the opportunity for either loss or gain.
Specific Insurance - CORRECT ANSWER A property insurance policy that covers a
specific kind or unit of property for a specific amount of insurance.
Sharing - CORRECT ANSWER A method of dealing with risk for a group of
individual persons or businesses with the same or similar exposure to loss who share
the losses that occur within that group.
Severability of Interests - CORRECT ANSWER A provision that insurance applies
separately to each insured in a policy, treating each individual as the only insured.
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