Property and Casualty Exam verified 2023 the one basic characteristic of any type of insurance is that the insured is returned to the same status that existed prior to the loss, but without a chance for gain or profit - Correct Answer true which of the following coverages does an open peril policy provide? - Correct Answer perils other than those specifically named as being excluded determine the actual cash value in the following situation: original price of office equiptment when purchased 8 years ago- 9,000. depreciated amount at time of fire-5,000 current replacement cost 12,000
- Correct Answer 7,000
liquor liability - Correct Answer need for a dram shot, liquor, or package store inherent vice or defect - Correct Answer iron rusting, milk going sour, rubber breaking down are all inherent vices how is hitting an animal on the road covered? - Correct Answer other than collision otc medicare supplement insurance - Correct Answer aka medical gap insurance. must include core benefits ordinance or law - Correct Answer an endorsement for building code upgrades loss sustained/discovery forms under crime coverage - Correct Answer loss is for later than the policy period. discovery is for before the policy (loss is later, discovery before) designated brush fire or civil unrest areas - Correct Answer qualifying areas under the fair plan stop loss provision - Correct Answer used in health insurance to limit the maximum amount of money the insured would have to pay out of pocket on a health claim in any particular claim 1 / 2
shortages of inventory - Correct Answer under crime insurance the employee dishonesty endorsement never covers can the mortgagee still collect if the insured burns their house down - Correct Answer yes, the mortgage clause is a standard provision otc covers - Correct Answer earthquake, flood, hail, theft, hitting an animal, gunshots (no collision or upset) law of large numbers - Correct Answer the greater the number of insured the more accurately the prediction where does a driver have coverage? - Correct Answer U.S. Canada and US possessions eg puerto rico, guam what is excluded under commercial general liability? - Correct Answer pollution-with the exception of fuel spilled during normal operations. Pollution is normally covered under cpp or builders risk what is the midi-tail on claims made? - Correct Answer provides 5 years coverage for something reported during minitail speculative risk - Correct Answer chance for loss or gain commercial package - Correct Answer modular policy Binder - Correct Answer a temp insuring contract (written or oral) Hazard - Correct Answer anything that increases a chance for loss OTC - Correct Answer anything causing loss or damage to the car, except collision
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