Fortuitous loss - Study guides, Class notes & Summaries

What is an eligible building for flood insurance?: A structure with 2 or more outside rigid walls and a fully secure roof, built on a permanent site, with 50% or more of the value above ground level and located within an eligible community What is Builders Risk Coverage?: Covers buildings in the course of completion. Proper coverage is 100% of expected completed value Do all Homeowners policies contain Coverage A?: No, HO-4 (Renters person- al property) What is casual labor in workers' compen...

Commercial Lines 101 CE Questions and Answers 2024 Insurer - Answer -The insurance company Named Insured/Insured - Answer -The policyholder Financial Definition of Insurance - Answer -A financial agreement involving the redistribution of financial losses Legal Definition of Insurance - Answer -A contractual agreement in which one party (the insurer) agrees to compensate or indemnify another party (the insured) for fortuitous losses Loss Pooling - Answer -the sharing of total losses susta...

CIP C12 - Insurance on Property - Midterm Defining Property Insurance - CORRECT ANSWER--Protection against loss/damage to property -First party insurance -Premium exchanged for protection -Fortuitous losses (sudden and accidental) -Insurable interest -Intangible product Real vs Personal Property - CORRECT ANSWER-R: buildings or land (can't be moved) P: office desk or machinery (can be transported) Promise that Property Insurance is based on - CORRECT ANSWER--Insured

Gross Premium - ANSWER-Total premium charged per unit of coverage Risk Charge - ANSWER-Estimation of risk of the insurer. 3* SD/ per person Admin Costs - ANSWER-Money spent in daily operations of company. Ex. Salaries, overhead, marketing Expected Loss - ANSWER-Expected frequency * expected severity Fortuitous - ANSWER-Random, accidental, no control over E(F)/E(S) Underwriting - ANSWER-process of classifying a risk Risk based pricing - ANSWER-Higher the risk you are, the more t...

All of the following are characteristics of insurance EXCEPT A) risk avoidance. B) pooling of losses. C) payment of fortuitous losses. D) indemnification. A) risk avoidance. Which of the following is implied by the pooling of losses? A) sharing of losses by an entire group B) inability to predict losses with any degree of accuracy C) substitution of actual loss for average loss D) increase of objective risk A) sharing of losses by an entire group

From a risk management viewpoint, insurance is used to A. Prevent the cost of losses B. Reduce the cost of losses C. Transfer the cost of losses D. Isolate the cost of losses. - C. Transfer the cost of losses. A loss exposure is: A. Any condition that presents the possibility of a loss. B. Any condition that precludes the chance of loss. C. The same thing as a peril. D. The same thing as a hazard. - A. Any condition that present the possibility of a loss. Some loss exposures are not eas...

Insurer correct answer: The insurance company Named Insured/Insured correct answer: The policyholder Financial Definition of Insurance correct answer: A financial agreement involving the redistribution of financial losses Legal Definition of Insurance correct answer: A contractual agreement in which one party (the insurer) agrees to compensate or indemnify another party (the insured) for fortuitous losses Loss Pooling correct answer: the sharing of total losses sustained by a fe...

South Dakota Crop Insurance Exam with Certified Solutions Insurable Interest occurs when a person stands to lose life or property. In property and casualty insurance an insurable interest must exist at the time of loss. In crop insurance, the owner of the crop has the insurable interest. Risk uncertainty or chance of loss. Can be speculative (an opportunity for gain that may result in a loss) or pure (involves only the possibility of loss or no loss) Exposure potential for loss th...

Cigna Terms question with complete solution 2023 passed graded A+ Insurer - correct answer An entity which provides insurance. Insured - correct answer A person who buys insurance. Also known as a policyholder or a subscriber. Contract - correct answer Called the insurance policy. Details conditions and circumstances under which the insurer will compensate he insured. Premium - correct answer The amount of money charged by the insurer to the insured for coverage. Name the 4 Core...

FLORIDA GENERAL LINES 2-20 TERMS | 205 QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS 100% CORRECT | UPDATE 2024 Accident A sudden fortuitous event abandonment clause A clause often contained in property insurance policies stating that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value Accounts receivable coverage forms An inland marine coverage form which insures against loss the insured suffers because of an inability to ...