TEXAS PROPERTY AND CASUALTY EXAM AND PRACTICE QUESTIONS WITH VERIFIED CORRECT ANSWERS || GRADED A+ || LATEST UPDATE
6 views 0 purchase
Course
TEXAS PROPERTY AND CASUALTY
Institution
TEXAS PROPERTY AND CASUALTY
TEXAS PROPERTY AND CASUALTY
EXAM AND PRACTICE QUESTIONS
WITH VERIFIED CORRECT ANSWERS ||
GRADED A+ || LATEST UPDATE
Laws of Large Numbers - ANSWER The larger the group, the more
accurately losses can be predicted
Elements of Insurable Risk - ANSWER C-alculable
A-ffor...
TEXAS PROPERTY AND CASUALTY
EXAM AND PRACTICE QUESTIONS
WITH VERIFIED CORRECT ANSWERS ||
GRADED A+ || LATEST UPDATE
Laws of Large Numbers - ANSWER ✔ The larger the group, the more
accurately losses can be predicted
Elements of Insurable Risk - ANSWER ✔ C-alculable
A-ffordable
N-on-catastrophic
H-omogeneous
A-ccidental
M-easurable
Calculable - ANSWER ✔ Premiums must be calculable based upon
prior loss statistics for that particular risk in order to predict future losses
Affordable - ANSWER ✔ The premium for transferring the risk should
be affordable for the average consumer
Non-catastrophic - ANSWER ✔ The risk must be non-catastrophic for
the insurance company
Homogeneous - ANSWER ✔ The risk must be similar in nature so the
same factors affects the chance of loss
, Accidental - ANSWER ✔ The loss mus have caused due to
chance(accident). Intentional losses caused by the insured not covered
by insurance
Measurable - ANSWER ✔ A definite and measurable loss means the
proof of loss must be established with numbers and dollars amounts, not
just casual references
Reinsurance - ANSWER ✔ An insurance company's insurance
company. Helps insurers spread their risk.
Stock Insurers - ANSWER ✔ -Owned by stockholders
-Dividend is not guaranteed
-Dividend is paid to stockholder
-Dividend is taxable to stockholder
-Issue non-participating policies
Ex: Allstate
Mutual Insurer - ANSWER ✔ -Owned by policyholders
-Dividend is not guaranteed
-Dividend is paid to policyholder
-Dividend is not taxable; considered refund of premium
-Issue participating policies
Ex: Liberty Mutual
Fraternal Benefit Society - ANSWER ✔ -Provides insurance and other
benefits
-Must be a member to get the benefits
Ex: Herman and Sons
Reciprocal Insurer - ANSWER ✔ -Unincorporated
-Members are assessed if a loss occurs to any members of the group.
-Managed by an attorney-in-fact
Ex: USAA
Risk Retention Group - ANSWER ✔ -Liability insurance company
created for policyholders from the same industry
Ex: A car dealer's risk retention group in which only car dealers can be
policyholders
Risk Purchasing Group - ANSWER ✔ A group of businesses from the
same industry that joins together to buy liability insurance from an
insurance company.
Self Insurance - ANSWER ✔ A business that pays its own claims.
Reserves funds cover losses
Retain risk rather than transfers
Federal Government Provides Insurance - ANSWER ✔ -War Risk
Insurance
-Nuclear Energy Insurance
-Flood Insurance
-Federal Crop Insurance
-Unemployment Insurance (at state level)
-Workers' Compensation (at state level)
Insurance Company Location - ANSWER ✔ -Domestic
-Foreign
-Alien
Domestic - ANSWER ✔ The state where a company has its home office
, Foreign - ANSWER ✔ Home office is in another state
Alien - ANSWER ✔ Home Office is in another country
Certificate of Authority - ANSWER ✔ State license for an insurance
company
Authorized or Unauthorized
Alternative dispute methods (appraisal) - ANSWER ✔ disagreement of
the amount of the loss
- comp. and insured ea. pay their own appraiser
***- appraisers get an umpire if they can't agree (cost shared)****
- agreement of any 2/3 determines amount
Arbitration - ANSWER ✔ disagreement about other areas of the loss
Vacancy & Unoccupancy - ANSWER ✔ - Vacant = empty bldg,
insured (no ppl or contents) penalized after 60 days of vacancy
- Unoccupied: contents remain, but no ppl, no loss of coverage
No benefit to Bailee ( care custody ) - ANSWER ✔ a person or business
that has temporary control of the insured's property.
- BAILEE cannot benefit from the property owners policy.
Property vs. casualty ins - ANSWER ✔ - property covers personal
belongings & real property. ex: if house is burnt down, ins pays for
rebuilt.
- casualty pays the "other guy" ex: if my dog bites mailman, insurance
pays mail carrier
Third party losses - ANSWER ✔ the 3rd party is the "other guy"
- 1st : insured
- 2nd : insurance company
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 ProfBenjamin. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
