P&C Vocab ch 1

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 ________.

What does personal lines insurance cover?

What does commercial lines insurance cover?

insurance means?

Risk means?

insurance only address inherent risk and not waht?

In personal lines of insurance who makes the decisions?

In commercial lines of insurance who makes decisions?

Cancellation means?

What does nonrenewal mean?

If an insurance company cancels a policy then what happens?

If the insured cancels a policy then what happens?

A Direct Loss is ???

An indirct loss is incurred after a Direct Loss and means what?

An example of an indirect loss would be?

Insurable intrest means?

What are exclusions?

Catastrophic losses are excluded but coverage for some can be purchased (give two examples)

Predictable losses are exclude (give example)

Losses better covered elsewhere are ____

Endorsements modify your policty to provide what?

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?

An Alien company is from where? 

Lloyds of London often provides what?

Admitted Companies are authorized to do what?

A Surpluse Lines Producer may produce what type of coverage ?

Apparent Authority is the authority of  what ?

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

What is the term used to describe terminating the insurance relationship at the end of the policy period?
A. Cancellation
B. Nonrenewal
C. Separation
D. Exclusion

Which is the best example of an indirect loss?
A. Sequential Loss
B. Liabilty loss
C. Employee theft
D. Loss of use

What is a tow party contract?
a. property
b. casualty
c. liablity
d. auto

Insurance contracts offset?
a. speculative risk
b. pure risk
c. gambling
d. created risks

which of the following is a third party contract?
a. property
b. casualty
c. earthquake
d. theft

Risk is best defined as
a. chance of loss
b. certanity of loss
c. financial loss
d. sentimental loss

Being subject to a loss is:
a. liablity
b. indemnity
c. exposure
d. subrogation

The ranking insured in a Personal Lines contract is the:
a. named insured
b. First named insured
c. Mortgagee
d. husband

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

This type of company is run for th ebenefit of the policyowner
a. stock
b. mutual
c. foreign
d. alien

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