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Property and Casualty Insurance Basics -Louisiana exam questions with answers
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Property and Casualty Insurance Basics -Louisiana exam questions with answers
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Property and Casualty Insurance Basics -Louisiana exam questions with answersInsurable Interest - 3 Elements - Answer-1.) Financial (a monetary interest)
2.) Blood (a relative)
3.) Business (a business partner)
**Insurable interest must exist at the time of the loss.
Named Insured - Answer-The individual(s) whose name appears on the policy's declaration.
First Name Insured - Answer-The individual whose name appears first on the policy's declaration.
Has control of the policy
Only one who may cancel the policy or request changes to the policy
Responsible for paying premiums and reporting losses
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.
Added to the policy by an endorsement
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, which differs from accident in that it includes 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
Fire, wind, hail, and explosions
Named peril - Answer-A specific cause of loss listed and described in an insurance policy. Also used to describe policies containing named perils.
Open peril - Answer-is a 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. (This term replaced the use of the term "all risks.") Direct loss - Answer-Loss that is a direct result of a peril, such as fire.
Consequential Loss - Answer-Indirect losses that occur as a "consequence" of a direct loss. Includes Time-Element coverages, such as coverage for rental value.
Liability - Answer-to pay damages to a third party for reasons such as bodily injury, property damage, personal injury, or advertising injury
Legal obligation to pay for damages that were incurred
Absolute Liability - Answer-is imposed on defendants engaged in hazardous activities, such as harboring wild animals, using explosives, etc. The injured party does not need to prove negligence.
Strict liability - Answer-applied in product liability cases - a business that sells or manufactures a product makes an implied warranty that the product is safe. Business is liable for defective products, regardless of fault of negligence.
Vicarious Liability - Answer-doctrine comes from the old English Law, "respondent superior," in which the master was liable for the acts of their servants. Transfers liability to another person who has a greater ability to pay. Ex.) parents pay for children
Ex.) employer pays for employees
Negligence - Answer-failure to use the care that a responsible, prudent person would have taken under the same or similar circumstances.
4 elements of a Negligent Act - Answer-1.) Legal duty;
2.) Standard of care;
3.) Unbroken chain of events;
4.) Actual loss or damage
Legal duty - Answer-It must be shown that the defendant had a legal duty to act or not to act.
Standard of Care - Answer-the defendant must has used a standard of care that breached that legal duty. Implies acting as a reasonable person would act.
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