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INSURABLE INTEREST - an economic interest in a property that must exist at the time of loss (you can insure the equity interest in your own home) UNDERWRITING - classifies the applicant based upon the underwriting requirements of the insurer; matches the risk presented with the premium charged by the insurer LOSS RATIO - percentage of claims paid in comparison to total premiums collected during a particular period of time RATES - set by the insurer at a level sufficient to pay claims and c...

Professional liability policies protect against liability resulting from - A. Errors and Omissions Page 46 Mini-Tail or Extended. Page 60 - B. 60 Days after expiration date Not an exclusion under auto physical damage selection. Page 28 - C. Carpools Not a covered territory in the personal auto policy. Page 25 - C. Mexico Which is covered under other than collision section of your auto policy. Page 26 - A. Hail damage to your car Nationwide Marine Define classifies risks can be written. P...

Under the Equipment Breakdown Coverage Form, which of the following describes expediting expenses? - Payment for repairs which accelerate the period of restoration Expediting expenses are those which hasten the period of restoration. By getting the business up to speed more quickly, these expenses are offset by the ability to generate revenue sooner. Which of the following is covered by Coverage E of the Farm Property Coverage Part? - Scheduled farm personal property How much will the Dwel...

Insurance - - a plan of spreading the risk of possible loss over a large number of people (Law of Large Numbers) - protects against the risk (uncertainty) of when a financial loss might occur Speculative Risk - - when there is a chance of gain as well as a chance of loss (ex: buying a stock, gambling) - insurance IS NOT intended to protect against this Pure Risk - - when there is a chance of loss only - not all pure risks are insurable Insurable Risk - - a risk the insurance company is w...

Declarations - Section of an insurance policy containing the basic underwriting information such as the insured's name, address, amount of coverage and premiums, and a description of insured's location. Where is Declarations page found? - Usually first page. Insuring Agreement - Section of an insurance policy containing the insurer's promise to pay. What does the insuring agreement list? - Insuring agreement lists the parties to the contract, effective and renewal dates, the descriptio...

Bobby, age 16, borrows his parents' car without their permission and gets into an accident. Which of the following statements about coverage under the parents' personal auto policy is CORRECT? A) Bobby is covered by his parents' policy because he is included in the definition of named insured. B) Bobby is not covered for this accident because he used the car without permission. C) Bobby is not covered because it was not his car. D) Bobby is covered by his parents' policy because he is...

Specific insurance - This type of insurance designates a particular item to be insured Blanket insurance - This type of insurance covers more than one item of property at a single location or one more items of property at multiple locations. Speculative - possibility of both gain and loss. Not insurable. Pure - only the possibility of loss. Insurable. What are the 5 methods of managing or handling risk? - avoid, control, retain, and transfer risk. Hazard - A condition or situation which i...

Insuring Agreement - company's obligation to pay, includes the perils and coverage for specific or named peril policies Exclusions - what the policy will not pay for Definitions - names of the persons insured in addition to the named insured are listed here, along with any other (blank) of terms in the policy Additional Coverage - coverages under a policy that are provided by the insurer at no extra cost Casualty Policies - defense costs over and above liability limits, post-judgement int...

Representations - Statements made by the applicant on an insurance application. Contract of Utmost Good Faith - An insurer must rely o the truthfulness and integrity of the applicant. Contract of Adhesion - When one party constructs the contract and the other party has no input. Elements of a Legally Binding Contract - 1. Legal Purpose 2. Agreement (Offer and Acceptance) 3. Competent Parties 4. Consideration Special Peril - Type of policy that insures against open perils of loss that ar...

A single Declarations page common to all coverages A single conditions section common to all coverages - A commercial package policy always includes Send the insured a reservation of rights letter - If the insured fails to report claim in a timely fashion, the adjuster will immediately ___ $1000 per person - The basic limit for coverage F-medical payments of the standard homeowners form is normally $250 - The CGL provides up to ___per day for loss of earnings as a supplementary payment W...