Exam (elaborations)
Exam Fx Chapter 2 - Property and Casualty Insurance Basics Exam Questions with complete solutions
- Course
- Institution
Exam Fx Chapter 2 - Property and Casualty Insurance Basics Exam Questions with complete solutions
[Show more]
Seller
Follow
Rusenna
Reviews received
Content preview
Exam Fx Chapter 2 - Property andCasualty Insurance Basics Exam
Questions with complete solutions
Financial (monetary interest)
Blood (a relative)
Business (a business partner) - Answer- 3 elements of insurable risk
at the time of the loss - Answer- In property and casualty insurance, insurable interest
must exist __ ___ ____ __ ___ ____
insured - Answer- anyone who is covered under the policy, whether named or not
named insured - Answer- the individual whose name appears on the policy's declaration
first named insured - Answer- the individual whose name appears first on the policy's
declaration.
additional insureds - Answer- Individuals or business that are not named as insured on
the declaration page, but are protected by the policy, usually in regard to a specific
interest.
accident - Answer- A sudden, unplanned and unexpected event, not under the control of
the insured, resulting in injury or damage that is neither expected nor intended.
occurrence - Answer- a broader definition of loss than accident because it includes
those losses caused by continuous or repeated exposure to conditions resulting in injury
to persons or damage to property that is neither intended nor expected
peril - Answer- a specific cause of loss; includes fire, wind, hail, and explosions
named peril - Answer- term used in property insurance to describe the breadth of
coverage provided under an insurance policy form that lists specific covered perils; no
coverage is provided for unlisted perils
open peril - Answer- Term used in property insurance to describe the breadth of
coverage provided under an insurance policy form that insures against "any risk of loss"
that is not specifically excluded.
Direct loss - Answer- direct physical damage to buildings and/or personal property. also
includes other damage where the insured peril was the proximate cause of loss.
i.e. a building catches fire, the fire dept. applies water to put out the fire, and the walls
and floor suffer water damage. the damage is paid because the cause was the fire
, indirect/consequential losses - Answer- losses considered as a result of direct loss;
these losses usually result from the time it takes to repair or replace damaged property
liability/casualty insurance - Answer- this type of insurance exists to pay damages to a
third party for reasons such as bodily injury, property damage, personal injury, or
advertising injury
liability - Answer- a legal obligation to pay for damages that were incurred for which you
may be responsible due to negligence
third party - Answer- Liability insurance does not pay the policy owner, but pays a _____
______ instead
absolute liability - Answer- A type of liability that occurs due to extremely dangerous
operations, such as the use of explosives or working at extreme heights.
strict liability - Answer- A liability that refers to damages caused by defective products
even though the manufacturer's fault or negligence cannot be proven.
Vicarious Liability - 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.
negligence - Answer- the failure to use the care that a reasonable, prudent person
would have taken under the same or similar circumstances
Legal Duty
Standard of care
Unbroken chain of events
Actual loss or damage - Answer- Elements of a Negligent Act
Comparative Negligence - Answer- A rule in tort law that reduces the plaintiff's recovery
in proportion to the plaintiff's degree of fault, rather than barring recovery completely;
used in the majority of states.
Contributory Negligence - Answer- the injured party must be completely free of fault in
order to collect
Intervening Cause Doctrine - Answer- a doctrine that bars or reduces recovery to an
injured person if an intervening cause interrupted the chain of events and set in motion
a new chain of events.
measured by the actual monetary loss the injured party suffered, which is measured by
the value of the property damaged and the loss of use of that asset - Answer- how is
property damage and the extent of the loss determined?
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
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!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
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.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Rusenna. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76799 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now