FROM CLASS

Question 1

pure risk is

Answer 1

insurable risk

Question 2

risk retention group corp or llc

Answer 2

spreads all or most liability

Question 3

purchasing group

Answer 3

purchases for group

Question 4

fidciary

Answer 4

finances / handles money for insurers

Question 5

loss ratio

Answer 5

example, a firm pays $100,000 of premium for workers compensation insurance in a given year, and its insurer pays and reserves $50,000 in claims, the firm’s loss ratio is 50 percent ($50,000 incurred losses/$100,000 earned premiums).

Question 6

manual rating is also known as

Answer 6

class rating

Question 7

loss exposure is when one may be affected by a

Answer 7

peril

Question 8

material statement

Answer 8

disclosure or lack of disclosure would change the insurer’s decision to issue a policy for the same premium

Question 9

producer/agent exceeds the authority expressed in his/her contract, and the insurer does nothing to counter the public impression that such authority exists (renewed after renewal)

Answer 9

apparent authority

Question 10

authority explicitly written in agency contract

Answer 10

express

Question 11

authority that the public assumes a producer has based on his/her actions

Answer 11

implied

Question 12

insured is ___, insurer is ___

Answer 12

first, second

Question 13

Insuring agreement is the

Answer 13

PROMISE

Question 14

ACV

Answer 14

today’s replacement minus depreciation

Question 15

an accident is a type of

Answer 15

occurrence

Question 16

subrogation

Answer 16

insurers right to recover payment from third party

Question 17

subrogate

Answer 17

third party pays

Question 18

policy premium is fully earned at

Answer 18

the end or expiration date

Question 19

pure no-fault

Answer 19

completely abolishes blame

Question 20

assumption of risk is not an

Answer 20

element of risk

Question 21

actual cause of loss

Answer 21

proximate

Question 22

statuary defense against negligence is

Answer 22

comparitive

Question 23

coverage D limit in DP policy is __% of coverage A

Answer 23

20%

Question 24

coverage a is settled on a __ on DP2 and DP3

Answer 24

Replacement Cost

Question 25

coverage is settled on a __ for DP1

Answer 25

Actual Cash Value

Question 26

__% of Coverage C will pay for alterations, additions, and improvements

Answer 26

10%

Question 27

dwelling policies do not have __, must be added by endorsement

Answer 27

liability

Question 28

HO-3 and HO-8 have what in common

Answer 28

personal liability and medical payments

Question 29

HO-3 is on a what basis

Answer 29

ACV

Question 30

HO-5 is on a what basis

Answer 30

RCV

Question 31

HO-2 has

Answer 31

property

Question 32

HO-4 has

Answer 32

contents

Question 33

HO-3 differs with HO5 in coverage

Answer 33

C

Question 34

other structures of what % in coverage B in DP and HO

Answer 34

10%

Question 35

OTC (other than collision) covers

Answer 35

earthquake

Question 36

good driver discount is at least

Answer 36

20%

Question 37

how many days notice for non renewal

Answer 37

30

Question 38

CAARP is

Answer 38

15/30/5

Question 39

Low Cost auto is

Answer 39

10/20/3

Question 40

duties of insured with uninsured motorist is to

Answer 40

notify the police

Question 41

FAIR plan relates to

Answer 41

fire ion brush area

Question 42

FAIR plan is not available for

Answer 42

auto or farm land

Question 43

coin collections covered under

Answer 43

personal article floater

Question 44

Boat Owners does not cover

Answer 44

personal injury

Question 45

floor covers

Answer 45

structures and contents

Question 46

property removed to protect it from floor is covered for

Answer 46

45 days

Question 47

SIR is

Answer 47

self insured retention

Question 48

SIR is not required for

Answer 48

umbrella policies

Question 49

Builders risk coinsurance must be at

Answer 49

100%

Question 50

coinsurance is located on what page

Answer 50

the declaration page

Question 51

Building and personal property does not cover

Answer 51

foundation

Question 52

building and personal property are paid on what basis

Answer 52

Actual Cash Value

Question 53

Commercial general Liability covers what only

Answer 53

customers

Question 54

who is considered an insured

Answer 54

anyone on the declaration page

Question 55

what liability can be endorsed onto CGL or its own policy

Answer 55

Pollution

Question 56

what is not an insured contract

Answer 56

employment

Question 57

broadest coverage for crime is

Answer 57

theft

Question 58

loss sustained form is used for

Answer 58

occurrence

Question 59

discovery form is used for

Answer 59

claims made

Question 60

__ and __ is not a crime coverage form

Answer 60

premises and operations

Question 61

Inland marine almost always provides what peril basis

Answer 61

OPEN peril basis

Question 62

freight insurance covers

Answer 62

freight and import duties

Question 63

what type of insurance coverage is used for strict liability

Answer 63

railroad protection

Question 64

which of the following is excluded as money in a crime policy

Answer 64

checks

Question 65

what type of hazard is a deliberate creation of loss by an insured in order to collect insurance payment or benefits? (gambling)

Answer 65

moral hazard

Question 66

NAIC

Answer 66

National Association of Insurance Commissioner consists of all state and territorial insurance commissioner regulations

Question 67

stock insurance

Answer 67

owned by stockholders

Question 68

mutual insurance company

Answer 68

owned by policy holders

Question 69

demutualization

Answer 69

mutual becomes stock