Pa Property & Casualty Exam

Front 1

in order to be insured an induvidual has to have a resource that he may lose if an even occurs. What term describes this concept?

Back 1

insurable interest

Front 2

What is the legal concept in which an individual is responsible for the harm that occurred because the individual failed to perform the actions that a reasonable person in a similar situation would take to ensure the safety of other individuals

Back 2

negligence

Front 3

A legal concept in which an indivudal must COMPENSATE an individual for the harm that he or she caused

Back 3

liability

Front 4

a legal concept in which an individual is responsible for the harm that occurred because the individual was performing an extremely hazardous activity, which caused harm even though the individual took all of the necessary precautions

Back 4

absolute liability

Front 5

a legal concept in which an individual is responsible for the harm that occurred due to the actions of another individual because the individual is responsible for the SUPERVISION OR CARE of the individual who caused the harm

Back 5

vicarious liability

Front 6

The declarations section of an insurance policy that identifies the specific resources and/or perils that the policy covers

Back 6

insuring agreement

Front 7

the declarations section of an insurance policy that identifies the specific resources/perils that the policy does not cover

Back 7

exclusions

Front 8

The declarations section of an insurance policy that identifies what key items

Back 8

-who is covered
-name of insurer
-amount of coverage
-phone # & address
-cost of premium
-specific property covered

Front 9

an individual who is covered by an insurance policy that he or she does now own but is listed on the policy

Back 9

additional insured

Front 10

an individual or organization that is covered by the policy because the individual or organization owns the policy

Back 10

named insured

Front 11

individual or organization that is covered by the policy because the individual or organization is considered to be the PRIMARY owner

Back 11

first named insured

Front 12

covered by the policy because the individual or organization owns the policy but the individual or organization is not considered to be the primary owner

Back 12

an additional named insured

Front 13

a provision that allows an insurer to acquire the rights to a piece of damaged property in exchange for a payment equal to the amount necessary to replace the property

Back 13

salvage provision

Front 14

a provision that prohibits the policyholder from transferring the policy to another individual or organization during his lifetime unless the insurer has agreed to the transfer in writing

Back 14

assignment provision

Front 15

provision that allows an insured individual or organization to collect the benefits of the policy even if the individual or or organization decides to abandon the property

Back 15

abandonment provision

Front 16

a provision allows an insurer to seek the amount that it paid for a claim from the individual who caused the harm if the insurer is required to pay a claim related to an incident for which the insured individual(s) are not responsible

Back 16

subrogation provision

Front 17

The Dwelling policy Broad form (DP-1) will only cover damage to a dwelling that occurs as a result of

Back 17

a fire, internal explosion, and/or lightning

Front 18

The Dwelling policy Broad form (DP-2) will only cover damage to a dwelling that occurs as a result of (COVERS THE MOST!!)

Back 18

-accidental dischararge or overflow of liquids
-an aircraft; burglary; civil commotion; an explision; falling objects; a fire; freezing pipes; hail; lightning; smoke; sudden and accidental damage from electrical current; cracking; a sprinkler system; vandalism

Front 19

Dwelling policy Broad form with extended coverage will cover

Back 19

an aircraft, civil commotion, an explosion, hail, smoke, vehicles, and/or wind

Front 20

The Dwelling policy Broad form (DP-3) will only cover damage to a dwelling that occurs as a result of

Back 20

any even that is not specifically excluded in the policy

Front 21

A type of dwelling coverage in which an insurer agrees to pay an amount equal to the income that a landlord would lose if the landlord's rental property is damaged and a tenant is no longer able to occupy the property

Back 21

Fair Rental Value

Front 22

A type of dwelling coverage in which an insurer agrees to pay an amount equal to the value of an individual's personal property if the individual's property is stolen

Back 22

Broad Theft Coverage

Front 23

A type of dwelling coverage in which an insurer agrees to pay an amount equal to the amount that an individual would need to pay to LIVE in another location if the individual's property is damaged

Back 23

Coverage E - Additional Living Expense

Front 24

A type of dwelling coverage in which an insurer agrees to pay some of the MEDICAL expenses for an individual other than the insured if an individual is injured on the insured individual's property

Back 24

Coverage M - Medical Payments to others

Front 25

an exclusion that states that an insurer will not pay any claim in which an individual's property is damaged as a result of A LAW OR ORDINANCE THAT COMPELS AN INDIVIDUAL TO MODIFY OR REMOVE THE STRUCTURES

Back 25

Building Law exclusion

Front 26

an exclusion that states that an insurer will not pay any claim in which an individual's property is damaged or seized by the government

Back 26

Governmental Action exclusion

Front 27

an exclusion that states that an insurer will not pay any claim in which an individual's property is damaged as a result of an earthquake, mudslide. landslide, sinkhole

Back 27

An Earth Movement exclusion

Front 28

an exclusion that states that an insurer will not pay any claim in which an individual's property is damaged as a result of the fact that the individual did not maintain the property

Back 28

A Neglect exclusion

Front 29

Which Home Owners form covers damage to a condo owner's PROPERTY that occurs as the result of any event that is not specifically excluded in the policy

Back 29

HO-6 Unit Owner's form

Front 30

Which Home Owner's form covers damage to a tenant's PROPERTY that occurs as the result of an aircraft, civil commotion, an explosion, fire, hail, lightning, smoke, theft, vandalism, vehicles, and/or wind

Back 30

HO-4 Contents Broad form

Front 31

Which Home Owner's form covers damage to the DWELLING that occurs as the result of any event that is not specifically excluded in the policy and damage to the PROPERTY inside the dwelling that occurs as the result of an aircraft, civil commotion, an explosion, fire, hail, lightning, smoke, theft, vandalism, vehicles, and/or wind

Back 31

HO-3 Special form

Front 32

Which Home Owners form covers damage to the DWELLING and PROPERTY inside the dwelling that occurs as the result of any event that is not specifically excluded in the policy

Back 32

HO-5 Comprehensive form

Front 33

What means conducting business in accordance with current rules and laws set by government regulatory agencies and the courts

Back 33

compliance

Front 34

standards of conduct and moral judgement

Back 34

ethics

Front 35

legal term that describes the relationship between two parties

Back 35

agency

Front 36

what is the term to describe how an insurer appoints an individual to act on its behalf

Back 36

agency contract

Front 37

an individdual whose position and responsibilities involve a high degree of trust and confidence (trustees, guardians & executors)

Back 37

fiduciary

Front 38

the name for the fact that a producer must sell the kind of policies that best fit the prospect's needs and in amounts that the prospect can afford

Back 38

needs selling

Front 39

what is given when the applicant pays the initial premium at the time the application for a policy is signed

Back 39

conditional receipt

Front 40

what is the term for informing the prospect or client of all facts involving a specific policy or plan so that an informed decision can be made

Back 40

full disclosure

Front 41

what is the name for the watchdog group whose member companies agree to adhere to and enforce ethical principles

Back 41

Insurance marketplace Standards Association (IMSA)

Front 42

what act deals with the inappropriate use of advertising

Back 42

Unfair Trade Practices Act

Front 43

any written or oral statement that does not accurately describe a policy's features, benefits, or coverage

Back 43

misrepresentation

Front 44

any false, maliciously critical, or derogatory communication that injures another's reputation, fame or character

Back 44

defamation

Front 45

what is the term if the buyer of an insurance policy receives any part of the producer's commission or anything else of significant value as an inducement to purchase a policy

Back 45

rebating

Front 46

the unethical act of persuading a policyowner to drop a policy solely for the purpose of selling another policy without regard to possible disadvantages to the policy owner

Back 46

twisting

Front 47

a resident producer license must meet what two requirements

Back 47

may either reside in PA or have their principal place of business in this state

Front 48

in what two situations is it not required to be licensed as a manager or exclusive general agent

Back 48

-a licensee who has limited underwriting authority
-a manager or agent who started before Dec 22, 1965

Front 49

Which of the following can not be issued a temporary license:
-surviving spouse of a decesed producer in order to sell the business
-a deceased producer's personal representative until new personnel is trained to run the business
-a person holding a power of attorney for a producer in the armed forces
-a person selling insurance for the estate of a deceased producer

Back 49

a person selling insurance for the estate of a deceased producer

Front 50

which of the following is not a reason for a license to be suspended or revoked
-making a factual but subjective comparison of two policies
-intentionally violating a cease and desist order
-making false statement in a license application
-violating an insurance regulation

Back 50

making a factual but subjective comparison of two policies

Front 51

increases the chance of loss

Back 51

hazard (leaving the door unlocked)

Front 52

the chance of loss

Back 52

risk

Front 53

a means of transferring the risk of loss

Back 53

insurance

Front 54

the cause of loss

Back 54

peril (types of peril - fire; flood; collision; theft)

Front 55

states that there must be an adequate spread of risk for insurance to be effective

Back 55

law of large numbers - more examples used, more reliable the statistic (predict the number of losses; predict the charge for premium)

Front 56

installing an automatic sprinkler system is an example of what

Back 56

reduction (can not avoid risk but can reduce risk)

Front 57

deciding not to produce a product due to serious potential side effects

Back 57

avoidance (avoid the risk of being sued)

Front 58

person in good health cancels health insurance policy - what risk management method

Back 58

retention (retaining risk)

Front 59

under what regulation in PA does it state that insurers must maintain specified minimum levels of capital stock and surplus

Back 59

Regulation of insurer solvency

Front 60

Who regulates insurance rates to avoid excessive, inadequate, or unfairly discriminatory rates

Back 60

Casualty and Surety Rate Regulatory Act

Front 61

who must an insurer notify when they terminate a producer's appointment

Back 61

the Commissioner and the producer

Front 62

which of the following is not a power and duty of the Insurance Commissioner

Back 62

-issuing cease and desist orders
-prosecuting producers who violate state insurance laws
-conducting complaint hearings
-appointing examiners

Front 63

what unfiar practices is when a producer offers, promises, allows, gives, sets off or pays a rebate on the contract of insurance

Back 63

rebating

Front 64

what unfair insurance practice is the purchase of insurance from a financial institution or from a designated insurer or producer as a condition of any loan or deposit transaction

Back 64

Tie-in sales

Front 65

what unfair insurance practive occurs when a producer makes, issues, circulates, or uses any written or oral statement misrepresenting the terms of a policy or contract of insurance

Back 65

misrepresentation

Front 66

what unair insurance policy occurs when a producer misrepresents or provides an icomplete comparison of policies to induce the policyholder to lapse, forfeit or surrender his insurance to take out a similar policy in another company

Back 66

twisting

Front 67

nonpublic personal financial information about individuals

Back 67

Privacy of Consumer Financial Information

Front 68

what is the term for an instruction by the consumer to the licensee not to disclose nonpublic personal financial informationabout that consumer to a nonaffiliated third party

Back 68

Opt out

Front 69

When can a producer share a commission with an unlicensed person

Back 69

-if licensee was held at time of sale
-referring person can receive a one time nominal set fee

Front 70

when a personal fire insurance policy is cancelled because the insured's acts increase the hazard insured against, how many days' notice must be provided to the insured

Back 70

30 days

Front 71

When an automobile policy is cancelled for a reason other than non payment of premium, how many days' notice must be provided to the insured

Back 71

60

Front 72

If an insured's driver's license has been suspended, the insurer may cancel the automobile insurance policy by giving how many days' notice?

Back 72

15

Front 73

what are the minimum limits of liability any individual must provide for bodily injury and property damage?

Back 73

15/30/5
$15000 per person bodily injury
$30000 per accident for body injury
$5000 per accident property damage

Front 74

purchased in the normal or standard market

Back 74

Pennsylvania Fair Plan Act

Front 75

After an accident, what is the waiting period before the insured can apply for income loss benefits

Back 75

5 work days

Front 76

what must occur in order for funeral expenses to be paid

Back 76

death within 24 hours of accident

Front 77

When an automobile policy is cancelled for a reason other than non payment of premium, how many days' notice must be provided to the insured

Back 77

60

Front 78

If an insured's driver's license has been suspended, the insurer may cancel the automobile insurance policy by giving how many days' notice?

Back 78

15

Front 79

what are the minimum limits of liability any individual must provide for bodily injury and property damage?

Back 79

15/30/5
$15000 per person bodily injury
$30000 per accident for body injury
$500 per accident property damage

Front 80

What act is intended to provide property owners with fire, extended coverages, vandalism and malicious mischief coverage when insurance is unable to be purchased in the normal or standard market

Back 80

Pennsylvania Fair Trade Ace

Front 81

After an accident, what is the waiting period before the insured can apply for income loss benefits

Back 81

5 work days

Front 82

an insurer must notify an insured at least how many days before increasing the premium on a commercial casualty insurance policy?

Back 82

30

Front 83

Which agency provides motor vehicle insurance to those applicants who would otherwise by uninsurable?

Back 83

Pennsylvania Auto Assigned Risk Plan

Front 84

When an employer must provide workers' compensation insurance but is unable to do so through normal channels, which organization can provide the required coverage?

Back 84

State Workers Insurance fund

Front 85

What term describes a producer who converts premiums for his own use

Back 85

Breach of fiduciary duty

Front 86

What insurance option lets the insured seek recovery for all medical and other out-of-pocket damages, pain and suffering, and other nonmonetary damages as a result of injuries caused by other drivers

Back 86

Full Tort option

Front 87

With Crop insurance, at what percent can crops be insured of their expected value?

Back 87

75%