Property and Liability Insurance Principles Section 1

Question 1

insurance policy tht covers an individual arising out of the ownership, maintenance/use of auto

Accepted Answer

Personal Auto Policy (PAP)

Question 2

Sets of data that are too large to be gathered and analyzed by traditional methods

Accepted Answer

Big Data

Question 3

Insurer tht is owned by its policyholders and formed as a corp. for providing insurance to them

Accepted Answer

Mutual insurer

Question 4

Policy that coversmost ofthe property/liability loss exposures tht occur of residentialproperty

Accepted Answer

Homeowners Policy

Question 5

Decision not to act that reduces the frequency/severity of losses or makes losses more predict

Accepted Answer

Risk control

Question 6

Transfer of insurance risk from one insurer to another through a contractual agreement...

Accepted Answer

Reinsurance

Question 7

Insurer that is owned by its stockholders and formed as a corp. 4 the purpose of earning profit

Accepted Answer

Stock insurer

Question 8

Insurance tht provides coverage for benefits anemployer is obligated to pay by compensationlaws

Accepted Answer

Workers Compensation Insurance

Question 9

Systematic, iterative plan to analyze & improve business processes thru life-cycle phases.Goals

Accepted Answer

Business process management (BPM)

Question 10

An insurer formed primarily to cover the loss exposures of its parent or members

Accepted Answer

Captive insurer

Question 11

Mathematical principle stating that as the number increases, accuracy of predictions increases

Accepted Answer

Law of Large Numbers

Question 12

Methodical examination of a policyholders operations, records, to determine the exposure units

Accepted Answer

Premium audit

Question 13

Nonadmitted insurer tht is eligible to insure risks tht have ben exported by a surplus lineslaw

Accepted Answer

Surplus lines insurer

Question 14

Process of selecting insured,pricing coverage,determining insurance policy terms and conditions

Accepted Answer

Underwriting

Question 15

Insurer not authorized by the state insurance department to do business within that state

Accepted Answer

Nonadmitted insurer

Question 16

A network of objects that transmit data to and from each other w/o human interaction

Accepted Answer

Internet of Things

Question 17

Any contract in which 1 party must either accept the agreement by the other party or reject it

Accepted Answer

Contract of adhesion

Question 18

An obligation to act in complete honesty and to disclose all relevant facts

Accepted Answer

Utmost good faith

Question 19

1 of 2 sectors of insurance industry. most of which cover the financial consequences of damage

Accepted Answer

Property-Casualty Insurance

Question 20

Contract in which the insurer agrees to pay(covered loss)an amount directly related to the loss

Accepted Answer

Contract of indemnity

Question 21

An association of investors who are represented by underwriters to write insurance &reinsurance

Accepted Answer

Lloyd's (Lloyd's of London)

Question 22

Insurance that covers many of the common liability loss exposures faced by an organization.

Accepted Answer

Commercial general liability (CGL) Insurance

Questions 22