P&C Vocab ch 1

  1. Property insurance is a _______ _______contract.
    two party
  2. What does property insurance cover?
    insureds property
  3. Liability insurance is a _____ ______ contract.
    third party
  4. libilty insurance protects the insured if they _______ another person's ______ or hurt their ________.
    • damage
    • property (PD)
    • body (BI)
  5. What does personal lines insurance cover?
    the needs of an individual or family
  6. What does commercial lines insurance cover?
    the needs of a business
  7. insurance means?
    transferring risk to an insurance company
  8. Risk means?
    A chance of loss
  9. insurance only address inherent risk and not waht?
    Speculative risk (gambling)
  10. In personal lines of insurance who makes the decisions?
    Named insured
  11. In commercial lines of insurance who makes decisions?
    First Named Insured
  12. Cancellation means?
    the policy is terminated during the policy period.
  13. What does nonrenewal mean?
    the policy will not be renewed at the end of the policy period.
  14. If an insurance company cancels a policy then what happens?
    The insured receves a pro-rata refund
  15. If the insured cancels a policy then what happens?
    they recieve a short-rate refund
  16. A Direct Loss is ???
    A loss which covered property is damaged or destroyed by a covered peril.
  17. An indirct loss is incurred after a Direct Loss and means what?
    A loss of use of hte covered property
  18. An example of an indirect loss would be?
    the cost of renting a car after the insureds auto was in an accident.
  19. Insurable intrest means?
    to have a financial stake in insured property
  20. What are exclusions?
    those things that are not covered
  21. Catastrophic losses are excluded but coverage for some can be purchased (give two examples)
    Earthquake and Flood
  22. Predictable losses are exclude (give example)
    Rist and Inherent Vice
  23. Losses better covered elsewhere are ____
  24. Endorsements modify your policty to provide what?
    Better coverage and typically cost additional premium
  25. A policy with no Endorsements is refferred to as:
  26. A Stock Company is operated for the benefit of who?
    Share Holders
  27. A Mutual Company is a participating Company operated for the benefit of what?
  28. A mutual company may pay what?
  29. Dividends are a return of what?
  30. A Domestic company is from where?
  31. A Foreign Company is from where?
    Another state, DC or Territy Guam Puerto Rico
  32. An Alien company is from where? 
    another country
  33. Lloyds of London often provides what?
  34. Admitted Companies are authorized to do what?
    Business in Indiana
  35. A Surpluse Lines Producer may produce what type of coverage ?
    A Nonadmitted Company
  36. Apparent Authority is the authority of  what ?
    The public believes that a producer has
  37. 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
  38. 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
  39. 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
  40. What is a tow party contract?
    a. property
    b. casualty
    c. liablity
    d. auto
  41. Insurance contracts offset?
    a. speculative risk
    b. pure risk
    c. gambling
    d. created risks
    pure risk
  42. which of the following is a third party contract?
    a. property
    b. casualty
    c. earthquake
    d. theft
  43. Risk is best defined as
    a. chance of loss
    b. certanity of loss
    c. financial loss
    d. sentimental loss
    chance of loss
  44. Being subject to a loss is:
    a. liablity
    b. indemnity
    c. exposure
    d. subrogation
  45. The ranking insured in a Personal Lines contract is the:
    a. named insured
    b. First named insured
    c. Mortgagee
    d. husband
    named insured
  46. 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
  47. This type of company is run for th ebenefit of the policyowner
    a. stock
    b. mutual
    c. foreign
    d. alien
  48. 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
    forgein company
  49. 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
    Admitted company
  50. 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
    forgein company
Card Set
P&C Vocab ch 1
Property and Collision Vocab