P&C Basics

the maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claim

Actualcash value is defined as:

Unbroken chain of events beginning with negligence and leading to injury or damage

the maximum amount available for payment of bodily injury to a single person in an accident

All of the following are duties after a loss EXCEPT

the amount of money realized from the sale of damaged merchandise

Protects the interest of the Mortgage Company...

(Insurance Carried ÷ Insurance Required) X Loss Amount = Loss Payment

provides for the sharing of loss with other insurance that may be written on the same risk

single property policy, covering multiple classes

Old english law that says the master is repsonsible for the servant

The replacement cost method of loss valuation is defined as

What type of policy will cover anything not excluded?

Lying on purpose

Cause of Loss

an insured structure in which no people have been living or working, and no property has been stored

Buildings constructed with masonry and/or other materials with a fire resistance rating of 2 hours or more

Staying at a hotel after a first is a....

Direct losses also include.....

What is a physical hazard?

The cost to buy something new at today's prices

used when it is difficult to establish the amount of insured property after a loss occurs

individuals or businesses that are not named as insureds on the declaration page, but are protected by the policy

a property insurance clause that extends broader coverage to current policies-no premium increase

a sublimit in a liability policy that puts a ceiling on the payment for all claims that arise from a single incident

Increase the probability of a loss

(Incurred losses + Loss adjusting expense) ÷ Earned premium =

Earth movement and water damage are

Termination of a policy during the terms is...

Certain rules must be met by both parties

A policy based on the max amount of money the insurer will pay in the event of a loss

What type of policy lists the perils insured against?

The insurers liability for payments as stated in the insurance policy

A property is insured against fire. What is fire considered?

the other party's negligence or fault will not necessarily defeat the claim

What do we call the risk selection process?

additional amount of coverage on the policy at no additional premium

Lists the duties and rules of both parties

modern, less expensive building materials

reduces recovery to an injured person if an _______ interrupted the chain of events

Contains all the basic underwriting info like name, address, premium, etc

Let's smoke and drink because we will die someday anyway represent what type of Hazard?

the individual whose name appears first on the policy's declaration

Also known as Consequential Losses

A policy based on a fair valuation for the property

Insurable risk may exist between all of the following EXCEPT:

Printed Addendums to a contract are

A parent is responsible for their child

if a person recognizes and understands that there is danger involved in an activity and voluntarily chooses to do it

factor that determines the premium to be charged

Replacement cost minus depreciation equals....

policy that only pays for a loss after the primary policy has paid up to its limit

liability for products

physical damage to either people and/or property

Legal duty, Stabndard of Care, Unbroken Chain of events and Actual Loss and Damage

Contains the insurer's promise to pay

A transfer of legal rights and ownership of the policy

automatically at fault for doing something dangerous

A material or structural issue that increass the chance of a loss

Failure to do what a reasonable prudent person would have done in the same or similar circumstances

the individual(s) whose name appears on the policy's declaration

a property insurance policy that covers a certain kind or unit of property for a set amount of insurance

a dollar amount an insured must pay on a claim before the insurance policy provides coverage

the injured party must be completely free of fault in order to collect