ExamFX Ch1 -5

General Insurance

100

An insurance company that is incorporated outside the US

A alien insurer

200

An absolutely true statement upon which the validity of the insurance policy depends

A warranty

300

What are the 3 types of hazards that give rise to a peril?

Physical - physical condition

Moral- a tendency toward increased risk

Morale- an indifference to loss

400

The 4 elements of a legal contract

Competent Parties

Legal Purpose

Agreement

Consideration

500

The 5 methods of handling risk

STARR method

Avoidance

Retention

Sharing

Reduction

Transfer

Property Ins Basics

100

What does TRIA stand for?

Terrorism Risk Insurance Act

200

What are the 2 types of liability?

Strict and Vicarious

strict- often applied to product liability cases

vicarious- liability imposed on one party as a result of another

300

3 elements of insurable interest

Financial

Blood (family)

Business

400

The 5 individual rate-making approaches

Judgement rating

Schedule rating

Experience rating

Retrospective rating

Merit rating

500

Every property and casualty policy is comprised of how many major components? What are they?

7

Declarations

Definitions

Insuring agreement

Additional coverage

Conditions

Endorsements

Exclusions and policy limits

Dwelling

100

DP1 is also called what type of form?

Basic

200

What number form covers personal property on an open peril basis and what is it called?

DP3 or Special form

300

What are the basic perils that are covered under a basic form?

Fire, Lightning, and Internal Explosion

400

What are the core 4 property coverages on a dwelling policy? Which forms have 5?

Cov A- Dwelling

Cov B- Other structures

Cov C- Personal property

Cov D- Fair Rental value

Coverage E- Additional living expenses (Added by endorsement to DP1. DP2 and DP3 have it included)

500

What is the acronym for the perils that are covered under a broad form? What are the perils?

BBB ICE GOLF

Bursting of heating systems

Burglary damage

Breaking of water heaters

Ice, snow, or sleet weight

Collapse of building or part of building

Electrical damage (artificially generated)

Glass breakage

Objects falling form outside

Leakage of water or steam damage

Freezing of plumbing

Homeowners

100

Something occuring as a minor accompaniment to something else

Incidental

200

Coverage A and B are merged in this homeowners policy type

HO-6 Condominium 

300

For coverages A,B,C, and D, does each one cover direct damages or indirect damages?

A- Direct

B- Direct

C- Direct

D- Indirect 

400

Earthquake coverage provided by endorsement in a HO form considers one or more earthquake shocks occurring within a ____hour period as a single earthquake?

72

500

How many homeowners policy forms are there, what numbers do they have, and what are they called?

6 policy forms

HO-2 (Broad)

HO-3 (Special)

HO-4 (Renters or Tenants)

HO-5 (Comprehensive)

HO-6 (Condo)

HO-8 (Modified)

Auto

100

The term for the transporting of people or things for hire

Livery

200

Medical payments must be rendered within how many years of an accident?

3 years

300

How many types of auto's are there and what are they?

4 types of autos

Owned, nonowned, hired, and temporary substitute

400

What are the 4 duties after an accident?

Help any injured person

Notify the police, registry or fire department

File a claim with the insurer

Cooperate with the insurance company

500

How many compulsory parts are there to a Personal Auto Policy? How many parts are there for optional insurance? Name all the parts

12 Parts- 4 comp/8 optional

Part 1- Bodily Injury to Others

Part 2- Personal Injury Protection

Part 3- Bodily Injury caused by Uninsured auto

Part 4- Damage to someone else's property

Part 5- Optional BI

Part 6- Med Pay

Part 7- Collision

Part 8- Limited Collision

Part 9- Comprehensive 

Part 10- Substitute Transportation

Part 11- Towing and Labor

Part 12- BI by Underinsured auto