Unit 3 Basics of Property and Casualty Insurance

Question 1

____ is the result of two or more policies covering the same property but providing different or non-identical coverage. This situation is not ideal because it can cause gaps or disputed payments.

Answer 1

Nonconcurrency

Question 2

What are the 3 ratios used to determine an insurance company’s value?

Answer 2

Loss, Expense, Combined

Question 3

What are the 3 ways to underwrite?

Answer 3

Judgment Rating
Manual (class) Rating
Experience Rating (merit)

Question 4

FCRA - the maximum penalty for obtaining consumer reports under false pretenses is $____, imprisonment, or both.

Answer 4

$5000

Question 5

FCRA - the notice must be given to the consumer no later than ____ days after a report is requested.

Answer 5

3

Question 6

The triggering event for TRIPRA increased in 2020 to $____. The cap on federal liability is not to exceed $100 billion.

Answer 6

200M

Question 7

Fraud: Fine and ___ years in prison, or both.

Up to ____ years in prison if false statements jeopardize insurer(BK).

Answer 7

10, 15