prop and casualty basics Flashcards
(24 cards)
Insurance adjuster adjusts losses, not an underwriter
a
Which part of an insurance contract sets forth the rules of conduct, duties and obligations of the insured and the insurer?
Conditions
Policies that agree to pay a stated amount to the insured in the event of a claim, regardless of the actual cash value of the property are known as
valued policies
Furniture that is destroyed when a building burns down is an example of what kind of loss?
Direct
Most Property and Casualty policies are written for what period of time?
One year
What is the name of the area of tort law that provides remedies for wrongful acts other than crimes and breach of contract?
Negligence
A policy that combines the maximum limit available for BI and/or PD for any one occurrence is a
single
Many CGL policies are written with an Aggregate policy limit, which is:
the most the insurer will pay for all claims during the policy period
The purpose of Coinsurance on Fire insurance is
to require the client to carry proper coverage
When you are found to be responsible for the negligent acts of others, it is known as
vicarious liability
What part of an insurance contract specifies the perils insured against
insuring agreement
What part of an insurance contract describes the perils that are not covered in an all-risk policy?
Exclusions
A hostile fire is one that escapes from its intended area.
a
The penalty for failure to satisfy the 80% Coinsurance requirement on a Property policy is
only a portion of a partial loss will be paid
All of the following must be present in order to prove negligence EXCEPT
intervening cause
States that have adopted limited forms of no fault auto insurance coverage are relying on what concept?
Assumption of the risk
A policy modification that may be added to an insurance policy for an extra premium charge to the insured is called a(n
endorsement
Data regarding the premium, limits, name and address of the insured and the policy period are found in what part of the contract
declarations
A policy that only pays after another policy has paid is called
excess
A doctrine of law that states that you cannot recover damages from the other party if you are found to be partly at fault is called
contributory negligence
Which of the following is NOT considered a Consequential Loss?
Damage to personal property
All of the following are permitted defenses in a negligence lawsuit EXCEPT
strict liability (not a defense in a negligence lawsuit)
When a direct chain of events resulting from a negligent act causes injury or damage, that act is considered to be
the proximate cause
All of the following are examples of Strict (or Absolute) Liability EXCEPT
driving your car
