P&C / CL Basics
The more examples used to develop a statistic, the more reliable that statistic will be
What is the Law of Large Numbers?
This is what Symbol 2 represents
What is Any Owned Auto?
One of the main CGL coverages which provides liability protection for an insured's business activities occurring on or away from the premises while the work is in progress
What is Operations Liability?
Commercial property causes of loss forms include three options _____, ______, and ______ and they determine?
What is Basic, Broad, and Special; what perils are covered
Business Income and Extra Expense is provided on this basis in the BOP
What is Actual Loss Sustained?
An individual through carelessness or by irresponsible actions can increase the chance of loss
What is a morale hazard?
The auto liability limit is referred to as CSL which stands for
What is Combined Single Limit?
The basis used for determining the premium charge for each classification
What is bases of premium?
The construction type that features combustible walls and/or roof, with exterior walls made of wood or other combustible materials
What is frame construction?
Property protection on a BOP follows which causes of loss coverage form
What is Special Causes of Loss Coverage Form?
A condition or situation that presents a possibility of loss
What is exposure?
Business use that should be applied for classification/rating when a truck visits multiple job sites a day
What is commercial use?
Manufacturers, product designers, and suppliers represent insureds that have higher ________ liability exposure.
What is product?
This clause requires the policyholder to insure covered property to a specified percentage of its full value in exchange for rate credit
What is coinsurance?
The BOP automatically applies the __________ ____ valuation method to property.
What is replacement cost?
Risk that represents chance of loss or gain
What is speculative risk?
The deductible the insured pays (if added to the policy) when they are liable for property damage to another person's property.
What is an Auto Property Damage Liability deductible?
An accident, including continuous or repeated exposure to the same general harmful conditions
What is an occurrence?
____ property is land and whatever is growing, erected or affixed to the land.
What is real property?
Per Encova BOP eligibility guidelines, contractor payroll cannot exceed $_______
What is $300,000?
The ratio that represents a percentage of losses incurred for every dollar of earned premium
What is loss ratio?
This endorsement, which broadens coverage to provide coverage for spouse and family members, is automatically attached to a business auto policy when the named insured is a sole proprietor
What is the Individual Named Insured endorsement?
A _________ may shift liability from an owner or contractor to a tenant or subcontractor
What is a hold harmless agreement?
Loss that results after the direct loss/damage to property and represents lost income or business or increased expenses while property is being repaired
What is indirect loss?
Per ISO eligibility rules, BOP eligible risks cannot exceed $_________ in sales at each location
What is $6,000,000?