Property and Casualty insurance exam Texas Questions with 100% Correct Answers
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Course
Property and Casualty insurance Texas
Institution
Property And Casualty Insurance Texas
Property and Casualty insurance exam Texas Questions with 100% Correct Answers
Insurance
The transfer of risk through a legal contract
Property
Covers real property and personal property against damage or loss resulting from covered causes of loss called perils
casualty
covers no...
Property and Casualty insurance exam Texas Questions with 100% Correct Answers Insurance
The transfer of risk through a legal contract
Property
Covers real property and personal property against damage or loss resulting from covered causes of loss called perils
casualty
covers non-property losses (3rd Party)
Personal lines
Insurance for families and individuals
Commercial Lines
Insurance for Business
Risk
Uncertainty of financial loss
Pure Risk
Chance of loss only (insurance only covers)
Speculative Risk
Chance of loss or gain
law of large numbers
as the number of homogenous loss exposures increases, the more accurate claims can be predicted from the group
Perils
causes a loss
Named Peril
lists the perils that are covered open peril
cover all perils except those specifically excluded by the policy
hazard
Are not causes of loss but are things that increase the chance of a peril happening.
Physical Hazard
something you can physically look at
Moral Hazard
dishonest tendencies
morale hazard
attitude of carelessness
Direct Loss
immediate physical damage to property
indirect loss
loss that happens after the direct loss but due to the loss of use of the property. Also called consequential
proximate cause
the first cause in an unbroken chain of events
Elements of a legal contract
Competent parties, Agreement, Legal Purpose, consideration
Binder
temporary contract of insurance. Pending issue of the policy, good for 30 days
DICEE
5 major parts to an insurance policy Insuring Agreement
Promise to Pay, Perils, Liability
Conditions
Rules of the Game, Insured's duties in a loss, Insurer's subrogation rights, mortgagees rights
Direct Liability
Insured is the wrongdoer
Vicarious Liability
insured is responsible for actions of wrongdoer
contractual liability
insured assumes another's liability under a written agreement
Absolute Liability
to not only break a law but to act deliberately or with intention to break a law
strict liability
whether you know about it or not, if you break a law, you are held accountable to the fullest extent of
the law
Legal Duty Negligence
owe an obligation to act or not act
breach of duty negligence
failure to comply with the duty
actual loss negligence
another suffers a loss
proximate cause negligence
the breach of duty is the direct causer of the loss
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