Property And Casualty License In Arkansas Exam. 153 Questions And Answers 2024.
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Property And Casualty License In Arkansas
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Property And Casualty License In Arkansas
Property And Casualty License In Arkansas Exam. 153 Questions And Answers 2024.
What is Insurance?
Transfers the risk of loss from individual to insurance co.
What is Risk?
Chance of loss occuring
What are 3 types of Hazzards?
Physical, Moral, Morale
What is a Peril?
Causes of loss insure...
Property And Casualty License In Arkansas
Exam. 153 Questions And Answers 2024.
What is Insurance?
Transfers the risk of loss from individual to insurance co.
What is Risk?
Chance of loss occuring
What are 3 types of Hazzards?
Physical, Moral, Morale
What is a Peril?
Causes of loss insured against
What does Indemnify mean?
Right for Reimbursement but only to the extent of the loss. Cannot gain from loss.
Define Subrogation
Right to seek damages from 3rd party so that the insured cannot collect 2xs.
What is an accident?
Sudden unplanned event resulting in a loss
What is an occurrence?
Repeated action or event that results in a loss
What is a direct loss?
Things physically loss. For ex. If a fire burned down a house that would be a direct loss of the fire.
What is an indirect loss?
A loss resulting from the direct loss. For Ex. If a fire burned down a house and you had to rent a hotel
room the added expense of the hotel would be an indirect loss of the fire.
What is a vacancy?
When someone has been absent and no property is stored on the premises for 60 days consecutively.
What is unoccupied?
When someone has been absent from the premises for more than 60 consecutive days but still has
property stored there.
,What type of insurance provides coverage for multiple classes of property at one location?
Blanket Insurance
Explain the actual cash value method of valuation
Current replacement cost-depreciation = ACV
When absolute liability is involved, does the injured party have to prove negligence?
No
If a product is unsafe, what kind of liability applies to the manufacturer.
Strict liability
What is proximate cause?
A reasonable cause or reason why a loss occurred.
What type of policies may include insurance to value provision?
Coinsurance
What is a certificate of insurance?
Written evidence a policy has been written and is in effect.
What information is included in a policy's declarations?
(who, What, Where, when, how much, why) Name, Address, Location described, Amt of coverage and
premiums and any supplemental representations.
What are the four elements of an insurance contract?
1. Agreement (offer and acceptance)
2. Consideration (the exchange of money for coverage)
3. competent parties
4. Legal purpose
What does Representation mean?
Something that is believed to be true to the best of ones knowledge but is not guaranteed to be true.
Will not void the policy.
What does Warranty mean?
Something that is an absolute truth. If found out to be false it could void the policy.
What are additional or supplementary payments?
A provision that provides add coverage for a specific loss expense at no additional premium.
What is included in the conditions section of a policy?
, The general rules that the insurer & insured agree to follow under the terms of the policy.
What is the term used to describe printed addendum's to a contract that are used to change the
policy's original terms, conditions, or coverage's?
Endorsements
What does the exclusions section of a policy specify?
Perils and persons not insured against
When is an appraisal needed?
When there is a disagreement between the insured and insurer on the value of the property.
How is an appraisal requested?
Either the insurer or the insured can request an appraisal by written demand.
What is proof of loss?
A sworn statement made that there was a loss. Must be done before the policy will pay.
What is cancellation.
When a policy is cancelled prior to the end of the coverage period. A written 10 day notice is required
before an insurer can cancel an insureds insurance.
What is nonrenewal
When an insurer or the insured decides not to continue coverage at the end of the current coverage
period. The policy remains in effect until the end of that period but will not continue after that.
What is the purpose of the Fair Credit Reporting Act?
Establishes procedures to make sure information is kept confidential, accurate, relevant, and is used
properly.
What are the eligibility requirements for a dwelling property policy?
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