P&C Vocab ch 1
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Property insurance is a _______ _______contract.
What does property insurance cover?
Liability insurance is a _____ ______ contract.
libilty insurance protects the insured if they _______ another person's ______ or hurt their ________.
- property (PD)
- body (BI)
What does personal lines insurance cover?
the needs of an individual or family
What does commercial lines insurance cover?
the needs of a business
transferring risk to an insurance company
A chance of loss
insurance only address inherent risk and not waht?
Speculative risk (gambling)
In personal lines of insurance who makes the decisions?
In commercial lines of insurance who makes decisions?
First Named Insured
the policy is terminated during the policy period.
What does nonrenewal mean?
the policy will not be renewed at the end of the policy period.
If an insurance company cancels a policy then what happens?
The insured receves a pro-rata refund
If the insured cancels a policy then what happens?
they recieve a short-rate refund
A Direct Loss is ???
A loss which covered property is damaged or destroyed by a covered peril.
An indirct loss is incurred after a Direct Loss and means what?
A loss of use of hte covered property
An example of an indirect loss would be?
the cost of renting a car after the insureds auto was in an accident.
Insurable intrest means?
to have a financial stake in insured property
What are exclusions?
those things that are not covered
Catastrophic losses are excluded but coverage for some can be purchased (give two examples)
Earthquake and Flood
Predictable losses are exclude (give example)
Rist and Inherent Vice
Losses better covered elsewhere are ____
Endorsements modify your policty to provide what?
Better coverage and typically cost additional premium
A policy with no Endorsements is refferred to as:
A Stock Company is operated for the benefit of who?
A Mutual Company is a participating Company operated for the benefit of what?
A mutual company may pay what?
Dividends are a return of what?
A Domestic company is from where?
A Foreign Company is from where?
Another state, DC or Territy Guam Puerto Rico
An Alien company is from where?
Lloyds of London often provides what?
Admitted Companies are authorized to do what?
Business in Indiana
A Surpluse Lines Producer may produce what type of coverage ?
A Nonadmitted Company
Apparent Authority is the authority of what ?
The public believes that a producer has
If a Company cancels an auto policy mid-term, the refund will be made on
A) Pro rata basis
B) Short rate basis
C) Retroactive basis
D) Coinsurance basis
Pro rata basis
What is the term used to describe terminating the insurance relationship at the end of the policy period?
Which is the best example of an indirect loss?
A. Sequential Loss
B. Liabilty loss
C. Employee theft
D. Loss of use
Loss of use
What is a tow party contract?
Insurance contracts offset?
a. speculative risk
b. pure risk
d. created risks
which of the following is a third party contract?
Risk is best defined as
a. chance of loss
b. certanity of loss
c. financial loss
d. sentimental loss
chance of loss
Being subject to a loss is:
The ranking insured in a Personal Lines contract is the:
a. named insured
b. First named insured
To be paid a claim under a P&C contract, insurable interest must exist
a. at the time of application
b. on the policy date
c. at the time of loss
d. at the time of claim settlement
at the time of loss
This type of company is run for th ebenefit of the policyowner
Ohio casualty is doing regual business in Indiana. Within the state of Indiana, Ohio casualty would be considered a(an)
a. domestic company
b. nonadmitted company
c. alien company
d. forgein company
Ohico caualty is doing regual business in Indiana. Within the state of Indiana, Ohio casulty would be considered
a. admitted company
b. domestic company
c. unathorized company
d. risk retention group
A company chartered in Guam or Puerto Rico doing regual business in NY would be considered by NYorkers to be an
a. domestic company
b. forgein company
c. alien company
d. international compney
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